STOCKS OF GOLD

New Zealand Herald, Volume LXXI, Issue 21698, 13 January 1934, Page 11

STOCKS OF GOLD

AMERICA'S HOLDINGS CONSIDERABLE INCREASE FUTURE OF THE DOLLAR DEVALUATION PROBLEM By Telegraph—Press Association —Copyright (Received January 12. 5.5 p.m.) NEW YORK, Jan. 11 A message from Washington says the United States' stock of monetary gold at the end of December was valued at 4,322,000,000 dollars, compared with 4,503,000,000 a year ago. The Treasury announces that the total money stocks at the end of December were valued.at 10,209,000,000 dollars, an increase of 505,000,000 in the year. The Washington correspondent of the New York Times says the Treasury's recapture of the profits on the 3,600,000,000 dollars worth of gold held by the Federal Reserve Banks in the event of President Roosevelt devaluing the dollar, was one of the important subjects discussed at conferences to-day between Mr. Roosevelt and his financial advisers. It is learned on good authority that actual devaluation immediately is impossible. The indications are that the President may ask Congress soon for complete authority to carry out such a step in addition to other moves when he feels them to be advisable in order to carry forward his recovery programme.

There have been persistent reports that the President has considered transferring the physical possession of all gold to the Treasury, including the Reserve Banks' holdings. Gold certificates would he issued to the latter for use as reserves.

In some quarters it is doubted whether the completed programme will go to this extreme. Among other subjects reported to have been discussed at to-day's conferences wore: —The freer use of silver as a currency base; the establishment of a domestic gold market and an open domestic silver market. The - Federal Reserve Banks reported to-day that their gold reserves total 3,566,000,000 dollars. If devaluation is proclaimed and the gold content of the dollar is reduced by 50 per cent as Senator Thomas advocated to-day the gold profit from this source would approximate 3,600,000,000 dollars and on the basis of a 60-cent dollar the profit would be about 3,200,000,000.

HOARDS IN LONDON

FOREIGNERS' PROPERTY BANK OF ENGLAND'S RECORD (Received January 12, 9.55 p.m.) LONDON. Jan. 12 The Daily Telegraph's financial editor says foreigners hoarded gold in London in 1933 on an enormous scale. Britain's gold imports exceeded the exports by £196,000.000. of which £100,000,000 went to swell the Bank of England's stocks, which now stand at a record level.

Undoubtedly, almost £100,000,000 represents gold owned by foreigners who feared their own needy Governments might enforce the sale of pri-vately-owned gold. Imports from France exceeded exports by £30,000,000 and from Germany £11,500,000.

A large amount of the produce of South African mines was bought in the London bullion market by foreigners, and is being retained here.