New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-01
FACE $l6,5OO Loss
in RISK ON GOLD
Underwriters of St. Louis
$11,O25,000 Cargo Hit
by Rate Jump.

Nnen the steamer 81. LOUIS, u bhS
Americn Line, left New York yesterday
she carried the largest cargo Of gold
that ever left an American port in one
bottom. In all she had $11 ,025,0OO, the
last previous record shipment having
been made earlier in the week, when
the Kronprinzessin Cecilie carried out
S1O,600,0OO.
The underwriters who insured the
st. Louis gold made a heavy loss on
the transaction. They had written the
risk at one-half Of l per cent, or $4,000
on the million, when rates were COM
paratively low earlier in the week.
Yesterday this was relnsured IN Lloyds
in London at per cent, so that the
loss to the underwriters is Sl,5OO on
each million, or about $l6,5OO.
Nominally the rate was l per cent on
such gold as may be sent out to-day,
but the reinsuring Of the st: Louis
cargo at per cent indicates that any
one wishing insurance on gold bound
for Europe will have to pay at least
2 per cent for the accommodation.
During the day another large con-
Segment Of gold came to the local
Sub-Treasury from Philadelphia VIA
parcel post. Assistant Postmaster Cen
eral Joseph Stewart came over with the
consignment and supervised its de-
livery. Previously the Sub-Treasury
had delivered gold to the value OF
S4250,000 for export TO Europe and
S1,550,000 TO Canada. The Guaranty
Trust Company announced the engage
ment of metal to the value of S2,OO0,OO0
for Europe Kidder, Peabody q Co.
announced the engagement OF $l,5OO,-
600. and August Belmont & Co. OF
S150.000.
Sterling cables were reported to
have sold at SO the pound yesterday
hut transactions at this figure were
light. M, CO..
of WAYS and means for preventing
Europe from obtaining gold IN New
York. As matter Of fact, there was
but one occasion. when il was seriously
attempted TO prevent the outflow o.
cold by artificial means. That was IN
tho DAYS of President Cleveland, when
the Morgan Belmont syndicate bound
themselves to block gold shipments.
Exchange then ruled at a price show
ing a comfortable profit in shlpping:
In this situation Hermann Sielcken, OF
the ceffee house of Crossman & Slelc-
ken, began selling exchange against
gold certificates, and announced ms
purpose of shipping gold. a.,
"Who's Sislcken?' Mr.. Morgan asked
when told of the threat.
>He found out few days later, when
the coffee importer presented SlOOO'OO0
in gold notes at the Sub-Treasury ana
obtained the equivalent IN metal just
how the incident would have worked
cut nobody knows, for soon after the
tide Of gold turned this way Subse-
oucntly Mr.. Morgan assisted MI
Sielcken ve. materially IN carrying
through the Brazilian coffee valoriza-
tion scheme
That others should succeed in keep,
ing gold where MIR. Morgan, with all
his power and that of his associates
failed, is more than those who nave
studied the situation can see. so long
as there is a demand for gold on the
part of Europe and Europe is willing
to paw more for it than Americans are
to keep it in New York, gold VIII 60
Bankers can agree not to ship goid TOT
the mere profit that may be IN such
shipments, but for everything Europe
sells here she can demand and get gold
Two things that initiate against
heavy gold shipments at this time are
the lack of ships to carry metal IN and
the closing OF the Stock Exchange
where Europe might turn its American
securities into gold. BY the time this
7 is adjusted, it is among the possibiii'
! ties that grain will be moving across
the ocean in large lots, thereby stay
| ing the demand for metal.