CANADA'S GOLD RESERVE.

Auckland Star, Volume LVII, Issue 80, 6 April 1926, Page 4

CANADA'S GOLD RESERVE.

iFrom Our Own Correspondent.)

SAX FRAXCISCO, March S.

Mr. D. M. Marvin, Economist of the Royal Bank of Canada, in an address delivered before the Commercial Department of Toronto University, stated that by keeping the gold reserve at its present level the Dominion annually lost about two million dollars. He-pointed out that the present total holdings of 238,000,000 dollars may very well be reduced by 50,000,000 dollars, and this reduction used to reduce foreign debts. Mr. Marvin points out that during the last three years the Government has been urged by responsible financial concerns to, return to gold payments a,s one means of accelerating an improvement in general business conditions.

He stated that tbe gold reserves will, within a short time, exceed the total note issue, if the Government does not permit gold export. Presumably the Government will not continue the present situation for any length of time, since it would mean that they would lose all financial benefits from the note circulation. "Sir. Marvin pointed to Canada's favourable trade balance and the financial benefit derived from the foreign tourist trade, estimated at 120,000,000 dollars, as factors in strengthening the country's financial structure.