GOLD AND SILVER

New Zealand Herald, Volume LXXIII, Issue 22344, 15 February 1936, Page 13

GOLD AND SILVER

AMERICA'S TRANSACTIONS ASSISTANCE TO CHINA (Received February 14, 5.5 p.m.) WASHINGTON. Feb. 14 Sonic details of the gold transaction with China involving the earmarking of 9,970,000 dollars worth for that conntry, were revealed to-day by the Secretary of the Treasury, Mr. H. Morgenthau. Some months ago, said Mr. Morgenthau, the Treasury purchased 50,000,000 ounces of silver from the Nanking Government, part of which was paid for in gold which was earmarked to China's account

The price of the silver was not disclosed. but it is understood to have been 65 cents an ounce, giving China a credit of 32,500,000 dollars. It is noted in financial circles that if such is the case, China made a net orofit of 10,000,000 dollars, for on November 5 China suspended the silver standard, and during the ensuing panic the price of the metal dropped to 45 cents an ounce. In any event .the Treasury appears to have taken an active interest in aiding China in her monetary problems.

Mr. Morgenthau to-day publicly praised Chinese officials for the management of their currency stabilisation fund.

America's silver stocks now aggregate 1,642,000,000 ounces, valued at 2,118,000,000 dollars based on the statutory value of 129 cents an ounce, compared with gold stocks of about 10,154,000,000 dollars or 21.8 per cent. Oflicials estimate that about 908,000,000 ounces more of silver must be acquired to fulfil the 33 1-3 proportion required by the Silver Purchase Act. This is assuming, of course, that no appreciable amounts of gold are exported.