diff --git a/include/extern.h b/include/extern.h
index 3c8a8ec40..f9749eeaa 100644
--- a/include/extern.h
+++ b/include/extern.h
@@ -1,4 +1,4 @@
-/*	SCCS Id: @(#)extern.h	3.5	2006/07/08	*/
+/*	SCCS Id: @(#)extern.h	3.5	2007/01/05	*/
 /* Copyright (c) Steve Creps, 1988.				  */
 /* NetHack may be freely redistributed.  See license for details. */
 
@@ -878,7 +878,11 @@ E boolean FDECL(obj_here, (struct obj *,int,int));
 E boolean NDECL(wearing_armor);
 E boolean FDECL(is_worn, (struct obj *));
 E struct obj *FDECL(g_at, (int,int));
+#ifndef GOLDOBJ
 E struct obj *FDECL(mkgoldobj, (long));
+E struct obj *NDECL(insert_gold_into_invent);
+E void NDECL(remove_gold_from_invent);
+#endif
 E struct obj *FDECL(getobj, (const char *,const char *));
 E int FDECL(ggetobj, (const char *,int (*)(OBJ_P),int,BOOLEAN_P,unsigned *));
 E void FDECL(fully_identify_obj, (struct obj *));
diff --git a/src/do.c b/src/do.c
index ee75ca29f..83800be53 100644
--- a/src/do.c
+++ b/src/do.c
@@ -648,17 +648,8 @@ int retry;
     boolean drop_everything = FALSE;
 
 #ifndef GOLDOBJ
-    if (u.ugold) {
-	/* Hack: gold is not in the inventory, so make a gold object
-	   and put it at the head of the inventory list. */
-	u_gold = mkgoldobj(u.ugold);	/* removes from u.ugold */
-	u_gold->in_use = TRUE;
-	u.ugold = u_gold->quan;		/* put the gold back */
-	assigninvlet(u_gold);		/* might end up as NOINVSYM */
-	u_gold->nobj = invent;
-	invent = u_gold;
-	u_gold->where = OBJ_INVENT;
-    }
+    /* put gold where inventory traversal will see it */
+    if (u.ugold) u_gold = insert_gold_into_invent();
 #endif
     if (retry) {
 	all_categories = (retry == -2);
@@ -728,15 +719,8 @@ int retry;
 
  drop_done:
 #ifndef GOLDOBJ
-    if (u_gold && invent && invent->oclass == COIN_CLASS) {
-	/* didn't drop [all of] it */
-	u_gold = invent;
-	invent = u_gold->nobj;
-	u_gold->in_use = FALSE;
-	u_gold->where = OBJ_FREE;
-	dealloc_obj(u_gold);
-	update_inventory();
-    }
+    /* if we put gold into inventory above, take it back out now */
+    if (u_gold) remove_gold_from_invent();
 #endif
     return n_dropped;
 }
diff --git a/src/invent.c b/src/invent.c
index 5d32f5df9..9218b9495 100644
--- a/src/invent.c
+++ b/src/invent.c
@@ -694,7 +694,44 @@ register long q;
 	context.botl = 1;
 	return(otmp);
 }
+
+/* used for container apply/#loot and multi-item Drop */
+struct obj *
+insert_gold_into_invent()
+{
+	struct obj *u_gold = 0;
+
+	if (u.ugold) {
+	    u_gold = mkgoldobj(u.ugold);
+	    u_gold->in_use = 1;
+	    u.ugold = u_gold->quan;	/* put the gold back on status line */
+	    assigninvlet(u_gold);	/* should yield '$' */
+	    u_gold->where = OBJ_INVENT;
+	    u_gold->nobj = invent;
+	    invent = u_gold;
+	}
+	return u_gold;
+}
+
+/* undo insert_gold_into_invent; gold might have been used up though */
+void
+remove_gold_from_invent()
+{
+	struct obj *u_gold = invent;	/* we expect gold to be first */
+
+	if (u_gold && u_gold->otyp == GOLD_PIECE) {
+	    invent = u_gold->nobj;
+	    u_gold->where = OBJ_FREE;
+	    dealloc_obj(u_gold);
+#if 0
+	} else if ((u_gold = carrying(GOLD_PIECE)) != 0) {
+	    u.ugold += u_gold->quan;	/* freeinv will subtract it back out */
+	    freeinv(u_gold);
+	    dealloc_obj(u_gold);
 #endif
+	}
+}
+#endif	/* !GOLDOBJ */
 
 STATIC_OVL void
 compactify(buf)
@@ -799,13 +836,6 @@ register const char *let,*word;
 #ifndef GOLDOBJ
 	if(*let == COIN_CLASS) let++,
 		usegold = TRUE, allowgold = (u.ugold ? TRUE : FALSE);
-	if (firstobj && firstobj->oclass == COIN_CLASS) {
-	    /* gold has been inserted into inventory; skip it during
-	       inventory letter collection */
-	    u_gold = firstobj;
-	    firstobj = u_gold->nobj;
-	    allowgold = usegold;
-	}
 #else
 	if(*let == COIN_CLASS) let++, usegold = TRUE;
 #endif
@@ -837,7 +867,15 @@ register const char *let,*word;
 
 	if(allownone) *bp++ = '-';
 #ifndef GOLDOBJ
-	if(allowgold) *bp++ = def_oc_syms[COIN_CLASS].sym;
+	if(allowgold) {
+	    *bp++ = def_oc_syms[COIN_CLASS].sym;
+	    if (firstobj && firstobj->otyp == GOLD_PIECE) {
+		/* gold has been inserted into inventory; skip it during
+		   inventory letter collection */
+		u_gold = firstobj;
+		firstobj = u_gold->nobj;
+	    }
+	}
 #endif
 	if(bp > buf && bp[-1] == '-') *bp++ = ' ';
 	ap = altlets;
diff --git a/src/pickup.c b/src/pickup.c
index 1f7387a09..4de12e827 100644
--- a/src/pickup.c
+++ b/src/pickup.c
@@ -2258,19 +2258,9 @@ int held;
 	}
 
 #ifndef GOLDOBJ
-	if ((loot_in ||stash_one) && u.ugold) {
-	    /*
-	     * Hack: gold is not in the inventory, so make a gold object
-	     * and put it at the head of the inventory list.
-	     */
-	    u_gold = mkgoldobj(u.ugold);	/* removes from u.ugold */
-	    u_gold->in_use = TRUE;
-	    u.ugold = u_gold->quan;		/* put the gold back */
-	    assigninvlet(u_gold);		/* might end up as NOINVSYM */
-	    u_gold->nobj = invent;
-	    invent = u_gold;
-	    u_gold->where = OBJ_INVENT;
-	}
+	/* if putting in, place gold where inventory traversal will see it */
+	if ((loot_in || stash_one) && u.ugold)
+	    u_gold = insert_gold_into_invent();
 #endif
 	if ((loot_in || stash_one) &&
 		(!invent || (invent == current_container && !invent->nobj))) {
@@ -2308,14 +2298,8 @@ int held;
 	if (!current_container) loot_out = FALSE;
 
 #ifndef GOLDOBJ
-	if (u_gold && invent && invent->oclass == COIN_CLASS) {
-	    /* didn't stash [all of] it */
-	    u_gold = invent;
-	    invent = u_gold->nobj;
-	    u_gold->in_use = FALSE;
-	    u_gold->where = OBJ_FREE;
-	    dealloc_obj(u_gold);
-	}
+	/* if we put gold into inventory above, take it back out now */
+	if (u_gold) remove_gold_from_invent();
 #endif
 
 	/* out after in */
@@ -2334,11 +2318,14 @@ int held;
 	}
 
  containerdone:
-	/* Not completely correct; if we put something in without knowing
-	   whatever was already inside, now we suddenly do.  That can't be
-	   helped unless we want to track things item by item and then deal
-	   with containers whose contents are "partly known". */
-	if (used && current_container) current_container->cknown = 1;
+	if (used) {
+	    /* Not completely correct; if we put something in without knowing
+	       whatever was already inside, now we suddenly do.  That can't
+	       be helped unless we want to track things item by item and then
+	       deal with containers whose contents are "partly known". */
+	    if (current_container) current_container->cknown = 1;
+	    update_inventory();
+	}
 
 	*objp = current_container;	/* might have become null */
 	current_container = 0;		/* avoid hanging on to stale pointer */