In the transaction described below about a quarter of a million dollars' worth of bar gold is shipped to London, the money to pay for the gold being raised by the drawing and selling of a demand draft on London. Assuming that the draft is drawn and the gold shipped at the same time, the draft will be presented fully three days before the gold is credited, that being the time necessary for assaying, weighing, etc. In other words, there will be an "overdraft" for at least three days, interest on which will have to be figured as a part of the cost of the operation. Following is the detailed statement: 13,195-1/2 ounces bar gold (.9166 fine) purchased from U.S. Treasury or Sub-Treasury at $18.9459 per ounce $250,000 Assay office charge (4 cents per $100) 100 Cartage and packing 20 Freight (5/32 per cent.) 390 Insurance (1/20 per cent.) 125 Interest on overdraft in London (from time draft has to be paid until the gold is credited) 3 days at 4 per cent. 83 --------- Total expense of buying and shipping the gold $250,718 13,195-1/2 ounces of gold credited in London at 77 shillings 10-1/2 pence £51,380 Draft on London for £51,380, sold by shipper of the gold, at 487.96 $250,718 In the transaction described above, the "overdraft" caused by the inevitable delay in assaying and weighing the gold on its arrival in London lasted for three days, the American banker being charged interest at the rate of four per cent. 487.96 being the rate at which the banker exporting the gold was able to sell his demand draft at the time, was, under those conditions, the "gold export point." In this particular operation, which was undertaken purely for advertising purposes, the shipper of the gold came out exactly even. Suppose, however, that he had been able to sell his draft, against the gold shipped, at 4.88 instead of 4.87-3/4. That would have meant twenty-five points (one-quarter cent per pound) more, which, on £51,380, would have amounted to $128.25.