The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1907-12-26
BUYING GOLD ABROAD
Methods Employed In Its Pur-
chase and Shipment.
NOT A COMPLEX TRANSACTION
The Simple System by Which Foreign
Bullion or Coin Arriving by Ship In
New York Is Turned Into American
Money-The Loss by Abrasion.

New York Is Turned Into American
Money-The Loss by Abrasion.
Buying s1o.OO0.oOO worth of gold
from the Bank of England. says the
cashier Of the subtrcasury in New
York. Is no more complex trans
action than buying a piece of real
estate Whatever difference there is
in the two is in favor of the gold pur-
chase In it you are pretty sure to get
the value of your money.
Much of the gold bought by the large
banking houses Of New York and other
American cities is purchased from the
Bank Of England or the Bank Of
France. It's purchase is arranged for
by the English or French agents OF the
bank that wishes to secure the gold.
The price that will have to be paid de-
ponds largely upon the demand. In
panic times, when every dollar Of gold
sought by bankers here, the price is as
high as and per cent.
The shipment Of the gold is accom-
panied by comparatively few extra
preca utions. An extra detective or
two from Scotland Yard. perhaps. and
as many other private detectives EN-
ployed by the Bank Of England fur
nish all the protection needed.
All gold imported into this country
comes in one Of two forms. 1t is either
in gold bars or in coin. If in coin it is
usually American money that has been
sent abroad in some previous year. for
a comparatively small amount of for
eign gold coin is brought here. Whether
in bar or coin, however, it is all ship
ped in small steel cases. The bars are
OF an exact length, so as to permit
them being packed tightly in the cases,
while the coins are in bags. irrespec-
600 ounces.
The arrival Of a gold laden ship at
her pier in the North river is no diff
ferent, SO far as precautions for the
gold itself are concerned, from that Of
any other vessel. There are always
government officials, city police and
private detectives to meet each ship,
and the arrival of a boat with 10000
600 in gold aboard Will result in no
more than one or two extra men being
present to ride on the wagons carrying
the gold away from the pier.
The steel boxes, with their precious
contents, as they are carted down
from the ship to the wharfs might
from their appearance contain only or
binary merchandise. II any unusual
precautions be taken, however, it Is
during the brief moments that the
boxes with their millions are lying on
the pier waiting to be lifted into the
wagons and carted away. Then they
are watched by a good many pairs OF
eyes. and not n stranger Is allowed to
approach anywhere near them.
The final act Of the purchase of gold
differs in times Of panic and at ordi-
nary times. In times OF panic, when
the necessity for gold Is SO great that
every moment is precious. its real val
ue in relieving q situation comes only
when 1t is piled high on the counters
Of the banks and trust companies
awaiting the demands of the creditors
Of those institutions.
The gold that arrives in bars goes
direct to the assay Office. Before any
attempt is made to analyZe it and as
certain it's real value the purchaser re-
ceives 4 certified check from the az
sayer for 0S per cent of the value sup.
posed to be contained in the bars. The
check can be converted into cash i'm
mediately, and the delay of two or
three days necessary to make a com
plete assay Of the shipment IS avoided.
Whatever additional sum is due the
purchaser after the assayer's report ID
made he receives in q day or two.
Much the same process SO far as ex-
pediency is concerned is gone through
with the gold coins. They. instead of
the subtreasury. Each bag is weighed
unopened and if found to tip the
scales at 500 ounces $1,000 in cash is
Immediately advanced. That process
saves many hours, for each bag has 10
be opened, the coins assorted into their
several denominations. counted and
weighed for loss from abrasions. Aft
er that is done the money is returned
to bags containing 5000 each. and the
balance due the purchaser. whatever
it may be. is forwarded to him.
The only other class Of gold shipment
that has to be handled is that Of for.
eign gold coins. They are not even
counted. but are placed Immediately in
a crucible. melted and then sent to the
assay office, where they are treated as
were the gold bars. The extra time
necessary to secure actual American
money for the gold coins Of foreign ma.
tons is the chief reason for the small
amount of gold imported in that form.
AS between shipping gold in coin OF
bars there is little difference. 1t is
said that the motion of the ships causes
q loss of about $500 in every shipmen,
of $1,000, 900. 1t is a fact, however
that the coins do lose considerably
more in weight than the bars.-New
York World.