FLOW OF MONEY

New Zealand Herald, Volume LXXVI, Issue 23269, 11 February 1939, Page 14

FLOW OF MONEY

CAPITAL MOVEMENTS r UNITED STATES FIGURES LOSSES OF INVESTORS (Received February 10, 6.15 p.m.) WASHINGTON, Feb. 9 ■Statistics of more than usual interest to the American financial community have been issued simultaneously by three Government agencies. The Federal Reserve Bank announced that 4,200,000,000 dollars of net. capital entered the United States from abroad from 1933 to date, but "only a limited amount now represents nervous foreign money ready to leave the United States as soon as conditions abroad become favourable." One third of the inflow represents tho liquidation of American assets abroad, a third represents foreign buying of 'American securities, and the other third is so-called floating money. The gold inflow to the United States over the period totalled 7,700,000,000 dollars, of which 2,100,000,000 represented a favourable trade balance. The Secretary of the Treasury, Mr. Morgenthau, announced that the operation of tho 2,000,000,000 dollars (stabilisation fund since 1934 showed a profit of 12,000,000 dollars after all expenses had been met, although the fund never operated for the purpose of profit but strictly for stabilisation. The Securities and Exchange Commission announced that the net loss to investors from all types of investment trusts in the United States from 1927 to 1935 totalled 2,900,000,000 dollars, of 7,900,000,000 dollars invested.