The San Francisco call., 1898-11-21
SCHEMES TO DIVERT GOLD
 ID SEATTLE Strange Plays Against San Francisco. CONGRESSMEN UP IN ARMS DISCRIMINATING EXCHANGE IN
 CHICAGO. Remarkable Energy of the Govern ment Assayer at Seattle
 in Drumming Up
 Business.
CONGRESSMEN UP IN ARMS
DISCRIMINATING EXCHANGE IN
 CHICAGO.


 The California delegation to Congress ! has sharpened it's claws for vigorous bout with the Treasury Department at | Washington regarding striking ana hitherto unnoticed discrimination against San Francisco and in favor of Seattle and Chicago in the matter of the receipt and disposition of gold bullion produced on the Pacific Coast, and especially in Alaska.
 One subject of protest Is that since the establishment of the United States assay office at Seattle recently gold bullion de- posted with Uncle Sam there has been paid for by check on the subTreasury 1 at Chicago instead of San Francisco. When a man deposits gold bullion at the San Francisco Mint he receives a check on the sub-Treasury here.
 The difference is that of the regular banking exchange between the Pacific Coast and Chicago. Thus, when gold is deposited in the assay office at Seattle the Treasury Department practically re- 1 ceives the deposit at Chicago and so Seat tie is given this advantage over San Fran cisco. The price of exchange is small, but the price of exchange regulates the flow of gold the world over. Between the Pacific | Coast and Chicago exchange costs b cents per $100 AS the Seattle office has re- cefVed between St, ,000, QUO and S6 ,OO0,UUO InlS year it's total advantage over San Fran cisco amounts to several thousand dollars a big figure in banking operations l It further transpires that the enterpris- ing F. A. Wing, who is the assayer in charge of the Seattle Assay Office, has been laying himself out to boom the busi- l ness of his office and of Seattle by missing no chances to divert his way and away from San Francisco all the bullion de-
 He has over his own signature adver- | tised the claim that the Government pays more for gold bullion at Seattle than at San Francisco, and has actively solicited miners to deposit their gold with him rather than at the San Francisco Mint. A few days ago, under date of November ! 2 he answered a letter of inquiry written 1 by well-known mining man of this State, and the main part Of this remark able letter from Government official Is | as follows:
 I take great pleasure in informing you that the charges are as follows: The first charge Is one eighth of one per cent on the gross value of the gold and silver The second charge is four cents per ounce on the weight after melt. The third charge is S1 for each deposit. or in cases where the deposit Is over 1000 ounces the charge is one-tenth of one per cent per ounce which makes small increase. The l fourth charge is 2 cents an ounce on one eleventh of the standard weight of the gold 1 which is a very small charge. The first and second charges are the only ones of importance
 All deposits are paid by checks on the sub-treasury at Chicago. The advantage of depositing with this office over the Mint at San Francisco would be that you can secure East ern exchange; and our second charge of four cents an ounce after melt is two cents less than San Francisco. I would be very pleased to handle any gold that you might see fit to send me, and am in position to give you prompt and satisfactory returns.
 Trusting to hear from you in the near fu- i ture, I am, respectfully yours.
 F. A. WING, Assayer in Charge. | This precious letter from a Treasury Department official sufficiently indicates l the way the Seattle Assay Office Is being | run in open and aggressive competition | with San Francisco by means of news 1 cations. Wing makes that Eastern ex- | change stick out as an inducement and l then declares that he will charge his GUS toners cents less an ounce than will | Superintendent Leach of the San Fran cisco Mint. According to this. gold is worth more in n the sa Sea Seattle Government | It is possible that MT. Wing is merely | ignorant. The Government charges at | Seattle are precisely the same as at San Francisco. but they appear to be ex- pressed differently at an assay office and l at a mint. The one-eighth of per cent charged at Seattle amounts to exactly z | cents per ounce, and cents is added to 1t. | At the hints one charge of cents is made, and the other trifling charges for | alloy and for deposit are exactly the same as at Seattle. If the facilities of the Seattle office allow as perfect assays as at the San Francisco Mint, the depositor should receive the same amount to Mr. Wing probably tripped on the and | 6 cents and may know better when he | learns. more. At both the San Francisco | Mint and the Seattle Assay Office the charges on 1000 ounces of Klondike gold | at S16 an ouce would, according to regu- lations, be s62 56.
 There is thus a discrimination against 1 San Francisco by the Treasury Depart ment both through it's hustling agent and | through the banking advantage allowed. The gold deposited at the Seattle office is l shipped to Philadelphia for minting. 1 When the bill for the establishment of the Seattle office was passed at the last session of Congress the argument for 1t | was that it would help the poor miner. l It is great convenience to the Alaska miner who returns to the Sound, but he exchange California Congressmen are | unable to see why Seattle should have | this advantage over San Francisco to
 Senator PerAIns. who is out of town Tor a few days, has said that he will protest at Washington, and Congressman HilboTn tlartiS- terday was Congressman Maguire, who has sit atso Is an a injustice i he declared. 1T shall talk with Senator Perkins when he returns. It is discrimination which the Government should not allow
 When it was suggested that the Treas ury Department appeared to have created 7'line of least resistance" for the trans continental flow Of gold, he said: Tt has done more than that. It has connived at a scheme to divert gold to Seattle and | Chicago for the benefit of special inter- ests. And 1t is not a valid argument to say that the gold is needed East. The Government should not do a banking business in competition with bankers. Let the bankers ship the gold if it is wanted | East. The natural course of the bullion is to San Francisco.
 
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