The Brattleboro Daily Reformer

GOLD EMBARGO STARTS SEPT. 10
Secretary of Treasury Authorized to License Certain Exportations
ANXIOUS TO KEEP BIG RESERVE HERE
Recent Trend of Precious Metal to Orient Has Given Officials Some Concern-Strict Enforcement of Embargo is Not Considered Necessary.

WASHINGTON, Sept. 8.-President Wilson last night placed an embargo, effective Sept. 10, on the exportation of coin, bullion and currency. At the same time he authorized the secretary of the treasury to license such exportations where, in the opinion of the federal reserve board they are not harmful to the public interest.

The effect of the embargo, which applies to all nations, will be to place absolute control over gold exports in the hands of Secretary McAdoo and the federal reserve board. Officials believe that the measure will go far toward conserving the huge store of gold accumulated in this country since the beginning of the war, a store which recently has been drawn upon rather heavily by Japan, Mexico and Spain.

Strict adhesion to the embargo is regarded as unlikely and undesirable. Curtailment, however, of the free movement of gold to the Orient appears probable. For some time past treasury and reserve board officials have viewed with some concern the tendency of gold to flow away from the United States, a movement which started with the financing here of the allies. Recently the Federal Reserve board requested the bankers of the country to aid so far as possible in checking the growing exports.

The president proclamation amends and supplements his general export embargo proclamation of August 27. Appended to it is an executive order providing that applications for the exportation of coin, bullion or currency shall be made to Federal Reserve banks and passed upon finally by the Federal Reserve board.

The trend of gold has been distinctly away from the United States recently. Within the five-week period ending August 17 exports totalling $73,000,000, were more than four times as great as imports. The movement has been too recent, however, to affect substantially the great volume of gold in this country. The stock is $3,000,000,000 of which approximately 40 per cent has been imported since January, 1915.

Imports of gold during the current year have totalled more than $538,000,000. Exports were recently estimated to have approximated $300,000,000, or more than twice as much as the volume exported altogether in 1916. Much of this gold has gone to Japan which has a balance of trade against the United States and recently exportations to Spain have assumed large proportions.