IN AMERICA

Hokitika Guardian, 5 December 1940, Page 5

IN AMERICA

GOLD HOARD

U.S.A. FEAR OF INFLATION.

(United Press Association —By Electrlo Telegraph—Copyright;.

NEW YORK, Dec. 3.

The New York “Herald-Tribune - ’ states: Mr Marine- Stoddart Eccies, who is a prominent financier a nr. banker, at a meeting of hankers, industrialists and economists, proposed that a loan be made to Britain of twenty-five hundred million dollars, against which the security should be a lien on the British Empire’s gold production for five years. Thus, he said, they would be sterilising such gold, and preventing it from inflating the United States bank reserves. Mr E'ccles outlined this scheme in camera at a meeting of the National Industrial Conference Bioard. He declared it was to be expected that the British Empire’s gold would flow to the United States, rvhere it would be bought by the Treasury. Thus it would be swelling the bank reserves, and increasing the danger of Inflation. On the contrary, funds for the loan proposed by him could be raised by the sale of securities, which gold could be earmarked as a backing, instead of passing the gold to the United States reserve.

Mr Elccles views are being widely circulated through members of the Conference. They have aroused interest, owing to there being a controversy as to granting Britain credits, and also because x\lr Eccles is the first to propose a departure from the easy money policy.

U.S.A. MERCHANT SHIPS.

PROMISED TO BRITAIN.

WASHINGTON, Dec. 3.

The United States shortly will release thousands of tons of merchant shipping to Britain. There are plans to lelease every sea-going ton of shipping this country can spare. Mr Roosevelt, taking a personal hand, discussed this question at length 1 wiih responsible officials before his departure for the Carribean Sea. The Maritime Commission has approved of the sale of four additional vessels to Britain. The Commission plans to offer for sale fifteen units of its laid-up fleet within a few days. Every consideration is to be given to British offers. ' Sixty-three vessels \et remain of the fleet that the United States had during the World War. A high- Administration official said: “We are »m a king every yjeffort to. see, that the British get more tonnage.” WASHINGTON, Dec. 4. The shipping problem and other phases of lending Britain: aid have been discussed at a conference attended by Messrs Morgenthau, Stimson, Sumner Welles, Herbert Feiso, Colonel Knox, and General Geo. O. Marshall.