New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-09-15
$5,OOO,OOO in GOLD
SENT TO CANADA
Banks Ship First Allot-
ment of Coin as Part Pay
ment of Debts Abroad.
100000 MORE
TO GO TOMORROW
Only Small Portion Of Yellow
Metal Withdrawn from
Sub.TreaSury.

The sending Of 100000 in Amer
lean gold to Canada yesterday by the
managers Of the New York City note
satisfying Europe's demand that Amer
On Wednesday another S3,00O,OOO VIII
70, and il is expected that before tho
current movement is over exports OF
the precious metal will reach q total
Of Sl5,O00,000 or ;20,o00,0o0. The
amount will depend largely upon the
psychological effect abroad of this
country's manifest readiness to meet
its obligations In 8 medium OF eX-
change satisfactory to its foreign cred
itors.
While the kegs of gold-each con-
tanning S60,000--whieh the American
Express Company trucks gathered from
various banking houses yesterday were
all directed to "The Minister OF Finance
and Receiver General, Ottawa, Canada"
and while they actually went TO Canada,
practically they ware consigned to the
Bank of England. They may never
cross the ocean, but as soon as they
arc received by the Canadian Minister
of Finance it will be the same thing
as though they had crossed, because he
is acting as the banks depostary Of
fcer. go,
Once In Ottawa the gold will be avail
able In London in the form OF credits,
upon which drafts may be drawn for
the payment of New York City's matur-
eng revenue warrants. The gold ship
ment came as result OF the hrst
requisition which the syndicate mana
gers, ]. =. Morgan & Co. and Kuhn,
Loeb & Co., have made upon the Ia
banks participating in the loan OF $780,
100000 to the city.
In the letter which was sent out yes
terday the banks were called upon to
paw S8,257, 400, or 10 per cent, OF the
amount they have agreed to furnish, II
required, in exchange on London or
gold.
As sterling checks ruled yesterday at
4.98 and better, and as these checks are
TO be accepted only at the rate OF 4.9O
the mound sterling, all the banks are
likely 10 paw their first instalment In
gold rather than in exchange at loss
of 3 cents in the pound sterling. The
syndicate, by the terms of the agree
ment with the city, is permitted to turn
over the exchange at 6.O35, so that on
the first instalment il has an apparent
profit of 1914 cents the pound. But its
net profits are limited TO per cent OF
the gross gain, and as there is no GER
tainty that exchange will continue to
sell below 5.035 while the operation IS
in progress, the syndicate still STANDS
a chance of loss on its contract.
Only Sl25,OO0 of the S5,000,000 gold
exported yesterday came from the Sub
Treasury, all the rest being withdrawn
from bankers vaults. Three million
dollars was taken from the Bankers
Trust Company. It's share OF the first
reouisition is only a little more than
$500, 900, but as il had large amount
of gold in its vaults ready for shipping
several other institutions turned gold
certificates over to il rather than draw
upon the supply in the Sub-Treasury,
and the trust company in turn handed
over gold coin to the syndicate man
ayers. It is understood that large
part Of the 100000 TO be sent
Wednesday will come from the Sub
Treasury, unless there is an uneIpect-
edlv large break in exchange rates
meanwhile, in which event exchange
will be substituted for gold.
II is planned to offer the new city
notes which the banks have taken as
an underwriting syndicate abroad, and
probably there will be supplementary
Offering in this country. A good for
eipn demand for the securities has al
ready appeared, and the latest esti--
mates Yesterday were that Europe would
take more than half the issue.
A banker said yesterday that there
was prospect of an early offering. OF
the notes in this country, in addition
TO the sale abroad. He thought the
banks would be willing to sell them at
par and interest for the sake of the
speedy addition TO their reserve they
would thus obtain There were many
injuries yesterday for the. notes, and
the bankers believe that there would
be little difficulty in diSpoSing Of those
not taken abroad.
Foreign exchange rates we're not ar
fected Yesterday BY the payment OF the
first instalment on the city's debt. De
mand and cables we're slightly higher at
1885, and 4.99, respectively, and there
was more business in German exchange
than has been seen for some time, not
withstanding the absence OF cable con-
nection. One banker reported that a
German institution had asked him to
sell IL a large amount in dollars; that
is. il wished to have balances which
we're owed it and credited to it in New
York in terms Of dollars, the rate OF
exchange to be a matter of agreement.