The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1908-01-03
BUYING GOLD ABROAD.
Methods Employed In Its Pur-
chase and Shipment.
NOT A COMPLEX TRANSACTION

Inc o'tHPiS system oy "nIcn Foreign
Bullion or Coin Arriving by Ship In
New York Is Turned Into American
Money-The Loss by Abrasion.
Buying $1o,Ooo000 worth of gold
from the Bank Of England, says the
cashier of the subtreasury in New
York, is no more complex a 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 ether
American cities is purchased from the
Bank of England OF the Bank of
France. Its 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
that can be secured is being eagerly
sought by bankers here, the price is as
high as and 6 per cent.
The shipment Of the gold is accom-.
panied by comparatively few extra
precautions. An extra detective OF
two from Scotland Yard. perhaps, and
as many other private detectives EN-
ployed by the Bank of England fur
n1sh all the protection needed
All gold imported into this country
comes in one of two forms. It 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. fol-
comparatively small amount of for
eign gold coin is brought here. Whether
in bar or coin, however, it is all ship
ped i'll 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
tive of denomination, that hold Just
500 ounces.
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 boat with $4,000.
GOO in gold aboard will result in nc
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 carried down
| from the ship to the wharfs might
from their appearance contain only or.
binary merchandise. If 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 carried away. Then they
i are watched by good many pairs of
eyes, and not a 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, it's real val.
ue in relieving a situation comes only
when it 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 certified check from the as
sayer for SO 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 is
made he receives in day or two.
Much the same process so far as ex-
pediency is concerned is gone through
with the gold coins. They, instead Of
going to the assay Office, go direct to
the subtreasury. Each bag is weighed
unopened and if found to tip the
scales at 500 ounces $4,000 in cash is
Immediately advanced. That process
saves many hours, for each bag has to
be opened, the coins assorted into their
several denominations, counted and
| a.
er that is done the money is returned
to bags containing $4,000 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 or
bars there is little difference. It is
said that the motion of the ships causes
a loss of about $500 in every shipment
Of $1,O00,OO0. It is fact, however,
| that the coins do lose considerably
more in weight than the bars.-New