The sun., 1919-06-25
NOREG0LD TO Be
! SHIPPED ABROAD
FIRST Expectation Of Metal to
Spain Since U. s. Entered
p War Is Started.
SHIPMENT OF 100000
Federal Reserve Board Issues
Modification Of Rulings
on Exchange.

The first shipment of gold to Spain
since a date many months prior to the
entrance OF the United States into the
var was started on its way yesterday,
when s., 000, 900 was withdrawn from
ira local Sub-Treasury for shipment to
that country. About S4,500,o00 also was
withdrawn for shipment to South
America
Although Spain extended credits to
the United States Government for pur-
chases in that country. there has been
n considerable balance of private trade
IN favor OF Spain. The shipment of
Fold helps to correct the exchange rate
between New York and Madrid, but ad-
ditional amounts will have to be shipped
10 wipe out the premium on the peseta.
Some time ago the Federal Reserve
Board, anticipating the lifting of the
embargo on gold shipments, asked New
York bankers to estimate the amount of
rold that would leave our shores. Their
estimates ranged from $3.50, 100000 to
i2Oo, 100000 The initial shipments
have corrected the exchange rates be-
tween New York and South American
points, and thus II has become less prof
table to ship gold southwark. the move
nent now continuing being merely the
settlement of past contracts. There re-
mains for correction only the exchange
rates between New York and Madrid
and New. York and Yokohama. Con-
seouently bankers now assert that the
free movement OF gold will not much
exceed $50, 000, 900.
The lifting of the embargo on gold
was first step in the direction of nor
mai foreign exchange dealings. Other
steps have included the gradual modi-
fcation Of executive rulings on exchange
transactions. The latest modification.
issued yesterday. was as follows:
Until otherwise instructed. dealers as
defined under the executive order of the
President of January 26, 1918. are
hereby authorized to carry on transact
tons In foreign exchange or in securi-
ties for or through foreign account
without restriction except as herein
otter provided.
Registration certificates must be OBJ
tained as required under the executive
order. All registration certificates
which have been issued to date continue
In force.
Customers statements of non-enemy
interest need not be taken, but no for
elgn exchange transactions can be con-
summated for enemy account unless
authorized in n general or a specific
Incense lSSueu pI lIle war Edue DOdru.
Further statistical reports. after
those including transactions UP to the
close of business on June rs. 1919, need
not be made except as called for by the
Federal Reserve Board.
Declarations OF foreign correspond
ents on Form f. E. ia and declarations
Of nen-enemy interest covering security
Transactions on Form +. E. 113 need
not be taken and interest or dividend
checks payable for foreign account need
not have customers statements printed
upon them, but dealers cannot carry
out transactions, directly or indirectly,
Enemy or ally of enemy except under
the authority OF general or specific
license issued by the War Trade Board.
Until otherwise instructed. the ex-
portation or importation Of Russian
roubles or the transfer Of funds for
their purchase by persons and dealers
IN the United States as described under
the executive order of the President OF
January rs. 1918. is prohibited. Deal
ings IN foreign exchange or securities
with or for persons In that part OF
Russia now under the control of the so.
called Bolshevik Government are also
prohibited.
Until otherwise instructed, dealers
are prohibited from purchasing ex'
change. except from the American Re
lief Administration, upon any of the
following countries: Finland. Poland
CZecho Slovakia, German-Austria, Jugo-
Slavia, Serbia, Rumania, Germany"