The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1902-05-23
SHIPPING GOLD.
How the Coin Is Moved About
the World.
The Mode of Packing Is Little Known
Outside of Banking Houses
There Are Tricks In
the Business.

The men who receive the gold say
that gold comes to this country as a
means of final settlement. "Our Eu-
ropean correspondents pay with secur-
tiles and bills of exchange" said a
banker, "as long as they can do so, and
when there ceases to be any profit in
that method they send MS the gold
All agree that the influx of gold is an
unmistakable sign of activity III busi-
ness. eve have the same conditions
right in our own country" said Maurice
L. Muhleman, deputy assistant United
States treasurer. "When the cotton is
being harvested in the south and the
grain in the west, New York sends to
the banks in those regions advances in
the shape of bankers drafts. This COM
mercial paper is used again by them
and there is no need for sending actual
money. But when the crops are un-
usually large and it requires extraor-
binary sums of money to pay for har-
vesting, then the local banks are COM
PEELED to ask for money instead of pa
per- They need it for their customers,
who can payhelp only with money. They
are prevented from making further in
roads on their own supply because of
the law which compels them to have q
certain amount of cash always on de-
post as reserve. That is the case at
present, and large sums of actual
money are being sent to New Orleans
and the west to help the little banks
along.
"The same causes are at the bottom
of the gold shipments from abroad. In
times when there is no demand for
money, when business is slack, bankers
have so much gold that they prefer to
receive paper; but with large crops to
move, increasing pay rolls due to in
crease in manufacturing with in
creased freight transactions and the
additional business which follows in
the wake of a manufacturing revival,
the supply of money becomes low, and
the consequence is that we ask our Eu-
ropean correspondents to send us gold
instead of paper"
But gold is not shipped like ordinary
merchandise, and the mode of packing
Enlistment to which it is consigned
The coin gold from Great Britain
comes in lots of 500 ounces. These lots
are usually packed in five bags of 1OC
ounces each, and the bags are placed
in a box, which is tightly nailed and
strapped. 1t frequently happens that
lot is slightly over weight, and in
! such cases a coin is clipped to make
the weight exact.
Bar gold is also shipped in boxes
each box containing 500 ounces. TIL,
bars are kept from chatting by being
packed between layers of sawdust.
American gold coin which has los
less than one-half per cent. by wear il
received for its face value, but all pieces
which are light as much as one-hal
per cent. are received by weight only
The assay Office advances 90 per cent
on all the gold which is left there, anC
when the actual value has been deter
mined settles by check on the subtreas
ury. American gold coin, like tn,
French and the German, is nineteenth
fine, British coin is eleven-twelfths fine
and bars are of various grades. Be
cause Of the variation in quality all set
Elements are made on the basis of ''fin
gold"
There are tricks in the gold bust
ness" said another banker, (which ar
not known to the rest of the bushes
world. For instance, the Lightweight
coin dodge. A man buys American
gold in Europe for shipment to thi
country. He buys it by weight an
uses it here for its face value. If tn
coins have been slightly worn in cir
culation, but not down to the one-hal
per cent, limit, the shipper makes tn
difference"
Gold when shipped to Europe iron
the United States is usually packed i
kegs or boxes, each containing five bag
of $4,000 each, and when one sees
large dray in the Wall street distric'
attended by several men, but loade
only with one or two small kegs, he ma
know that there is an actual movemen
in gold.-N. Y. Tribune.