BANK OF FRANCE HAS CONTROL OF WORLD’S GOLD

Manawatu Times, Volume LIV, Issue 6863, 19 March 1929, Page 3

BANK OF FRANCE HAS CONTROL OF WORLD’S GOLD

Mr. J. M. KEYNES’ STATEMENT. Mr J. M. Keynes, editor of the ‘ Economic Journal’ and secretary of the Royal Economic Society makes a startling statement in the ‘Nation’ regarding the financial domination of the world. “The question of the sufficiency of the world’s gold supplies and of the abundance or scarcity of credit for the world’s business lies, for the near future, in the hands of the Bank of France," he says. Mr Keynes says the four leading banks’ gold reserves arc: United States Federal Reserve Banks, legal £504,000,000, free, £237,000,000; Bank of England, £109,000,000 and £45,000,000; Bank of France, £232,000,000, and £31,000,000;; Reichsbauk, £06,000,000 and £65,000,000. “This apparent weakness of the Bank of France is deceptive," he adds, “because it holds, mostly in London and New York, £257,000,000 in liquid reserves, of which' £100,000,000 is in London. “Thus the Bank of Franco holds in London, withdrawable at short notice, nearly twice the total reserves of the Bank og England, and simultaneously, holds in New York an amount equal to three-quart-ers of the Reserve Banks’ free reserves and can, if she desires, draw to herself practically all the surplus gold in all tho central banks of America and Europe. “Wc all survive by favour of the Bank of France, which so far has behaved with extraordinary consideration; but France will use every opportunity to increase her stock of gold, hud nobody can prevent her."