One Other 1909 Gold Coin Export
One Other 1909 Gold Coin Export

One Other 1909 Gold Coin Export to France.

Only one other 1909 engagement to France contained gold coins; the coins formed a part of the May 19th, $1,500,739 export engagement.

Relevant newspaper accounts are included below, and an analysis follows:

1.

... Shippers are waiting for the assay office to mint some more gold bars in order to export the same to Paris, and in the meantime coin is going to Argentina. ...

N. Y. Evening Mail, May 13, 09, 14:2

2.

...[Today, May 17] About $2,000,000 gold was taken for Europe[the Netherlands] by the National City Bank. This will probably go in the form of coin, as the Assay Office has no more bars to sell. The Chase National Bank took $300,000 bars from the Assay office to-day for a customer, who will ship the metal later. ... When the exchange market opened strong here and sold as high as 4.87 7/8, there was a quick interchange of cable dispatches with the other side, and several shipments were partially arranged in addition to the gold actually taken for export to-morrow. ...

New York Post, May 17, 09, 1:4

3.

GOLD COIN TAKEN
AFTER BARS GIVE OUT

The Chase National bank took $300,000 gold bars from the Assay office to-day. That exhausted the supply available for export. The bars will go to Paris.

A little later the National City bank announced that it has engaged $2,000,000 for export to Europe to-morrow, part in coin and in bars. [Emphasis supplied.] Exchange dealers said that sterling was not at a level that would permit shipments of gold in coin at a profit. Nevertheless it was believed that the City bank is sending gold to Paris.

A shipment of $1,500,000 is being made to Rotterdam. So far on the present movement more than $50,000,000 has gone abroad.

N. Y. Evening Mail, May 17, 09, 12:4

4.

ENGAGEMENTS OF GOLD FOR EUROPE

Engagements of gold for Europe were arranged yesterday [May 17], and inquiries were made which may result in additional engagements before the close of the week. The Chase National Bank took all of the exportable gold bars which the Assay Office held, $300,000, and will ship them to Paris, probably on Thursday [May 20th, presumably aboard La Savoie. Emphasis supplied.]. The National City Bank engaged $2,000,000 in gold coin, most of which will be sent to Holland by to-day's steamer, although exchange rates are not at a level which would apparently show a profit on the exportation of coin. ...

N. Y. Tribune, May 18, 09, 11:1

5.

The National City Bank is handling most of this week's engagements. To-day it will send $2,000,000 gold coin to Holland and $1,000,000 gold bars to Paris.1 It will also send a considerable amount of gold coin to Argentina by Thursday's steamer. The Anglo-South American Bank Ltd., will send $250,000 also to Buenos Ayres this week. The Chase National Bank secured $300,000 bars yesterday and will, it is understood, send them to Europe this week. [Emphasis supplied.]

Journal of Commerce, May 18, 1909, 1:5.

6.

GOLD GOES ABROAD
IN COIN AND BARS

Total of $3,300,000 Is Engaged for
Shipment to Paris and
Rotterdam.

Because foreign exchange had risen to the gold export point yesterday, yellow metal to the extent of 3,300,000 was obtained for shipment abroad.
Shippers of the metal were reticent as to the destination of their shipments, but it was learned, nevertheless, that the National City Bank will ship $2,500,000 to Europe, $1,000,000 in bars going to Paris and $1,500,000 in gold coin going to Rotterdam, Holland.
The National City Bank yesterday engaged $2,000,000 in coin at the Sub-Treasury for export. As $1,500,000 of this is intended for Rotterdam, the remaining $500,000, it is reported, may be sent to Buenos Ayres on Thursday along with $500,000 previously engaged for the South American republic.
There is some mystery about the source of the $1,000,000 in bars which is consigned to Paris. It was not engaged at the Assay Office.
1 The Chase National Bank yesterday engaged at the Assay Office $296,000 in bars for storage. This sum, which exhausted the supply of bars available for export, will probably go to Paris later in the week. [Emphasis supplied.]
At the Farmers' Loan and Trust, there has been for some time a quantity of gold bars in storage, probably about $1,000,000. This is said to be the gold that the National City Bank has arranged to ship to Paris, although it is possible that the supply has been obtained at Philadelphia, and some authorities hold that it might even have come from San Francisco.2
These engagements make a total of $47,250,000 taken for export so far this year. Of the total $10,900,000 was for Paris and only $1,750,000 direct to Rotterdam, although other shipments are said to have been intended eventually for the Holland city. The greater part of the balance went to South America.
The Anglo-South American Bank will ship $250,000 in gold to Buenos Ayres on Thursday.

New York Herald, May 18, 1909, 16:7, continued to 17:1.

7.

HEAVY GOLD WITHDRAWALS.

More than $2,000,000 Coin Taken
To-day - Large Shipments in Prospect.

Engagements of $2,100,000 gold for export were made today in addition to the $3,000,000 shipped to France and Germany yesterday, and efforts were made by bankers to secure the supply at the Assay Office several days ahead. The demand for exchange was so much in excess of supply as to make exports extremely profitable with sterling bills selling at to-days high level. There was a rush to secure gold for Europe almost as soon as the market opened, and the fact that the coin obtainable at the Sub-Treasury was in very good condition led many bankers to risk the usual chance of abrasion in sending coin instead of bars.

Of the gold engaged to-day, Lazard Frères took $1,000,000, the National City Bank $500,000, Hallgarten & Co. $300,000, and other shippers $300,000. The Hallgarten engagement was for South America, while the balance of the withdrawal will probably go to Europe, although a portion of the gold may be held back till the close of the week, when the bankers can ship to Cherbourg. The bankers could probably have shipped $5,000,000 gold at a handsome profit to-day had they been able to secure such an amount of bars at the Assay Office. The margin of profit on coin shipments was not sufficient to justify the shippers in speculating upon such transactions, and the disposition was to ship what was really needed as a medium of exchange. ...

New York Post, May 19, 09, 13:4

8.

GOLD SHIPMENTS CONTINUE HEAVY

The National City bank will send $500,000, half in coin and half in bars, and Lazard Frères $1,000,000, half in gold coin and half in bars, to Paris to-morrow. There will be shipped by Thursday's steamer $300,000 gold by Hallgarten & Co. to Buenos Aires.

Gold bars amounting to $230,000 have been taken by the National City bank from the assay office to store in its own vaults.

N. Y. Evening Mail, May 19, 09, 12:2

9.

Gold to the extent of $2,360,000 was withdrawn for shipment yesterday, of which $2,110,000 was taken in coin from the Sub-Treasury and $250,000 in bars from the Assay Office. Exchange rates were such as to make exportation of the yellow metal very profitable. There was a big demand for gold bars at the Assay Office but National City Bank obtained the entire available supply - $250,000 - so other shippers were obliged to take coin.
Lazard Frères took $1,000,000 for shipment to Paris, while the National City Bank is shipping $500,000 to the same place. Hallgarten & Co. are sending $300,000 to Buenos Ayres. Other shippers are sending to various destinations about $300,000 while the National City Bank has stored in its vaults $250,000 for shipment later in the week, probably to Argentina.

New York Herald, May 20, 1909, 16:6.

10.

$2,410,000 GOLD FOR EXPORT

Contracts for Shipments to France Fea-
ture of Day's Business.

Engagements of gold for export were resumed yesterday with contracts for shipments to France, the novel feature of the day's business, Lazard Frères, who had taken little part in the export movement previously, secured all the bars in the sub-treasury [?], $250,000, and $500,000 in gold coin. The City Bank took $1,000,000 gold coin; the National Bank of Commerce $200,000, and Hallgarten & Co., $300,000. ...

New York Commercial, May 20, 09, 1:3

11.

[Yesterday, May 19] ... As the sterling exchange rate advanced again, it was not considered surprising that additional engagements involving more than $2,000,000 in gold bars and coin were effected for shipment to Paris and Buenos Aires. Of this total engaged for export $250,000 were in bars, but the gold in this form was not obtained in the United States assay office, but from other sources in New York. The remainder of the shipments will be made in gold coin obtained from the United States sub-treasury. ...

New York Commercial, May 20, 09, 4:2

12.

The competition for gold bars for export has become so keen that each day's melting is being reserved in advance by exporting banks. Some recent engagements have been in the shape of gold coin, although present exchange rates hardly warrant shipment in that form. Bankers state, however, that they can ship coin at a slight profit, although bars are much more profitable and are being engaged as fast as the Assay Office can supply them.

N. Y. World, May 20, 09, 10:2

FOOTNOTES

1 National Archives, Director of the Mint, Letters Received, 280 051. Chase National Bank's May 17th purchase of approximately $300,000 in gold bars from the Assay Office is not a part of the U. S. Government's "Statement..." May 17th, $1,034,000 gold bar engagement. The May 17th - $1,034,000 gold bar engagement was actually purchased from the New York Assay Office by the Farmers Loan and Trust Co. on March 24, 1909. The embargo on gold bar exports, referred to in the discussion of National City Bank's purchase of Philadelphia Bars, prevented the exportation of this gold at the time of purchase and, consequently, it was placed into storage (Ibid. 278 175 and 278 653). The May 17th [March 24th], Farmers Loan and Trust Co. engagement, most likely sold to National City Bank, was reportedly shipped on the Kronp. Cecilie (Journal of Commerce, May 24, 2:5) which departed May 18th to Cherbourg.
2A total of $2,000,137.97 in gold bars for export was drawn from the U. S. Mint at Philadelphia in January, 1909, and they were the only bars drawn for export from the U. S. Mint at Philadelphia for the entire calendar year 1909. Reports from the Superintendent of the Mint at Philadelphia, Bureau of the Mint, Letters Received, #287 865 and #287 866, U. S. National Archives, Washington, D. C.