U.S. GOLD SHIPMENTS CEASE

Northern Advocate, 7 February 1936, Page 5

U.S. GOLD SHIPMENTS CEASE

OUTFLOW MOVEMENT WAS WELCOME

(Received 10 a.m.) NEW YORK, February 5

Commitments for shipments of gold to Europe ceased to-day, as President Rosevelt’s announcement of plans to cancel one billion dollars of the Governments lending authorisation strengthened the dollar to the extent that the franc slipped below the gold export point. The dollar declined again in late trading, but left only a small margin of profit in gold exports. The shipments of gold totalled 15,643,000 dollars, of which more than 14,000,000 dollars’ worth was consigned to France.

Evidence given before a committee of Congress in December, belatedly published in Washington, revealed the fact that Treasury officials, concerned at the nation’s huge gold reserve, would welcome just an outflow movement as started a few days ago. In this connection, the Secretary of the Treasury, Mr. H. Morgenthau, stated that the silver buying programme to bring the stores of that metal to a definite ratio with the nation’s gold holdings was progressing very slowly. The Treasury, apparently, is finding it difficult to carry out the silver law passed by Congress, with so much gold on hand.