MONEY MARKET.

Auckland Star, Volume LXX, Issue 35, 11 February 1939, Page 4

MONEY MARKET.

AMERICAN CONDITIONS.

HEAVY CAPITAL INFLOW

INVESTMENT LOSSES.

February 10.

statistics of more tban usual interest to the American financial com ipunity ™ le beeu issued simultaneously by three Ijon eminent agencies. The Federal Reserve Bank announced that 4.200,000,000 oollars of net capital entered th" United states irorn abroad from 1933 to date, but only a limited amount now- represents nervous foreign money ready to leave the I nited States as soon as condition* abroad become favourable.

One third of the inflow represents the liquidation of American assets abroad, a third represents foreign buying of American securities, and the other third so-called floating money--1 lie 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 the 2.000.000.000 dollars stabilisation lund since 1934 showed a profit of 12.000.000 dollars after all expenses had been met. although the fund never operalcd for the purpose of profit, but strictly lor stabilisation.

Ihe Securities and Exchange Commission announced that the net loss to investors from all tvpes of investment trusts in the United States from 1927 to ion., totalled 2.900.000.000 dollars, of < .000.000.000 dollars invested.