TOO MUCH GOLD
AMERICAN' BANKERS’ WARNING
NEW YORK, Sept. 29. Gold continues to be l'ilcd up in tlio vaults of American banks. -flit* total monetary stock in the States is now larger than the stock of all the principal gold-holding countries in the world. Central hanks and Governments have increased their holdings from £860,000,000 in 191-1 to £l°(j.3o 200 000 this year. The Elated States’which held £362,600,000 of this total in 1911, now owns £913,000,000. The latest issue of the review issued by Dominick and Dominick, bankers, of New York, contains an interesting comparison of the amounts of gold held by various countries in 1914 and 192 ( , which not only indicates an increase in the actual gold supply of the world, but also shows that gold is dropping out of circulation and is instead being held in reserve in the banks. The inflow of gold into America (say these New York hankers) is a phenomenon, which has become familiar. For the first seven months ot this year the import of gold into America amounted to aliout £28.000,000 and the avorace importation since 1910 for an on tire year is about £32,000,000. An enormous quantity of gold—over half the world’s supply—has been buried to all intents and purposes, tn the United States; it is noT as irrevocable as the gold which Tndia annually stores away, hut its effect on commodity prices has been almost as effectively nullified. “So long as the United States continues to import gold and sterilise it in its reserves, prices will continue to fall. The gold in Europe is becoming inadequate on a gold standard. Tt would appear that the world price level is approaching a point where the American stock of gold must be permitted to exercise its natural effect upon trade and trade valuer.”
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Bibliographic details
Hokitika Guardian, 22 November 1927, Page 1
Word Count
299TOO MUCH GOLD Hokitika Guardian, 22 November 1927, Page 1
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