New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-26

of coin reported in The Tribune's spe-
cial cable dispatch from Paris this
morning do not begin TO represent
the gold actually held in France. for
there every small banker, every notary
and all small merchants make 1t
rule in times like the present 20 store
gold coin against repetition OF l6iO'
These hoardings. as rule, are small,
but in the aggregate run into millions.
Drain Greatest in Five Years.
Thus far this year the exports of gold
10 Europe have been far above the nor
NAL. the total of $50 800 900 shipped or
engaged to be shipped on Tuesday be-
ing in excess of the shipments of every
year since 1909. when New York COM
pleted paying the big loans it had Sc
cured in the panic year OF 1908. except
one. that of 1910. In the twelve months
of 1909, even with the payments made
on account of loans in the previous
year. but SSS, 799 900 in American gold
coin or bullion was exported. In 1910
this rose to 100000
The following year. however, saw
drop 10 S21 100000. In 1902 the total
jumped to S53.0OO.00 and last year to
SIG 900 900. or only Sl3,000,000 less
than has been exported thus Tar IN
little more than six months OF 1914.
All these large shipments have not
been on account Of war preparations.
but that has been the impelling rea-
son why Europe in the last two years
has been buying gold here. when for
eign exchange ruled at a price that did
not permit of profitable export of gold
under the usual conditions.
Interest Paid in Transit.
Thus much Of the gold sent to
France this year has been on special
transactions. so-callcd. in which the
purchaser takes the metal. agreeing TO
pay interest in transit and guarantee
ing fixed rate of exchange.
Frances demands for gold on this
centre are due, aside from the Tact
that this is the one place where IL can
be most readily and cheaply obtained.
TO a desire to strengthen the reserves
of the Bank Of France against any pos
sible contingency and to the fact mat
France, particularly Paris. was heavily
committed i'm the way of financing the
last Balkan disturbances. The amount
Of this financing was estimated at
1890. 100000 In addition to importing
gold AT This centre France has also
been a liberal buyer of Cape gold N
London.
France. however. has not been the
only country in Europe TO attempt 20
strengthen its gold reserves above thc
point usually considered safe. and
within a fortnight Sir Felix Schustcr.
chairman OF the Union CT London ana
Smiths Bank. in his annual address 10
the stockholders Of the bank demanded
chat steps be taken 20 strengthen
Great Rritain's gold reserves.
"Our liabilities Tor gold payments
he said, fare 10 = great eX'"Nt subject
70 call, while oug gold assets. though
large end valuable. are not so imma-
diately available"
British bankers" said Sir Felix.
who is recognized as one of the most
conservative Of the great London bank
ers. ARE too prone. 10 rely on Great
Britain's position rs q creditor ma
ton He added chat legislation should
be enacted changing the position Of the
Bank OF England, which under the OK
listing law secures it's notes by gold de
posted in It's vaults.
During the fiscal year" he said.
there has been great accumulation OF
gold III thv state banks Of Europe. Dur
ing the last twclvemonth the Bank Of
Germany hRs increased It's gold holdings
from f5i.000,O00 TO 5000 600, gain
OF c20.000,000 10 two Yeas. I'm France
the increase IN one year had been $780,
600 900. while Russia had added ilS,-
O0o oH0 20 it, hoard
These additions to gold reserves" !