The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-05-22
VICTORY ENDS A LONG FIGHT
NORTHERN MILLIONS NO LONG
Err FOR PHILADELPHIA.
The Treasury Department Corrects a
Big Discrimination and Adds
Millions to San Fran
cisco's Receipts.

The great current of gold at the San
Francisco Mint has been increased by
several million dollars yearly by the
action of the Treasury Department in
ordering the deposits at the new United
States Assay Office at Seattle TO be
shipped to San Francisco hereafter in
stead of to Philadelphia, as has been done
since the establishment of that depository
of bullion little over a year ago.
This is the victorious result of long
and hard fight in behalf of San Francisco
interests begun last fall by the California
delegation at the instance of interests
here. When the office was opened the
Treasury Department directed the ship
ment of its bullion to the Philadelphia
Mint. and it further directed that de-
positors of bullion should be paid by
check on the Sub-Treasury at Chicago
This latter feature was a clear ana G gIi-
warranted discrimination against san
Francisco in favor of Seattle as was Vlgor-
ously urged by members of the Calltornla
delegation especially Senator Perkins, ana
congressman Loud and Mcguire. ray
ment by check on the Chicago SUB
Treasury saved depOsitors and bankers
the banking exchange of $l00 per SlO0g
when it was wished to transfer the gold
from the Pacific coast to the East. De-
positors here were paid by check on the
San Francisco Sub-Treasury. The Seattle
depository, eduidistant with San Fran
cisco from the East, was thus given the
advantage of $50 per thousand with
which to divert deposits from San Fran
cisco. The total exchange advantage en-
joyed by Seattle bankers amounted TO
several thousand dollars on the S60O0,0OO
or so of bullion deposited there. Assayer
F.. A. Wing and Seattle papers exploited
this advantage to lure depositors from the
north. 1t was thought by some of our
delegation that the whole arrangement
was the result in some measure of the
influence of Chicago banking and trans
portation interests TO which Secretary
Gage was naturally friendly.
The express rate on the gold was at that
time exactly the same to Philadelphia and
to San Francisco. the Northern trans
continental express companies having re-
duced their rate to get the business. 1t
with its extensive coinage facilities was
the natural place to send Pacific coast
gold instead of to the Philadelphia
Mint which has so much uncoined bull
Treasury here was the natural place for
payment of depoSitorS. The Government
should not do a banking business in COM
petition with bankers: San Francisco
bankers send nearly $50 000,0 900 of coined
gold East annually. If the gold was
wanted East the bankers were the ones to
send it there
1t took long negotiations and much
correspondence to win the day. But the
Director of the Mint lately directed that
beginning with May depositors at Seattle
should be paid by check on the San Fran
cisco Sub-Treasury, and that the bullion
received should go to the San Francisco
Mint. One element of the victory was a
reduction in the bullion express rate by
Wells, Fargo d Co.
The greatly increased output of the
KIondfke this season will augment the
receipts of the Seattle Assay Office as
many shippers of gold will find that de-
pOSitOry more convenient. The new ar
rangement will not tend to decrease the
deposits there materially. 1t will merely
concentrate all the Pacific coast gold at
San Francisco and add number of mil
lions to the coinage here.