AMERICA’S GOLD HOARD

Poverty Bay Herald, Volume LV, Issue 17606, 23 October 1931, Page 5

AMERICA’S GOLD HOARD

LARGE SUM EXPORTED BUT HUGE TOTAL STILL HELD WASHINGTON, Oct. 21. , Although the gold exported abroad o: earmarked for foreign account since Britain's suspension of the gold standard totalled almost £500,000,000, American stocks are still approximately £BBO,000,000 due to gold imports from Argentine, Canada and other countries during the period. The Federal Reserve Board, moreover, announced to-day that the foreign demand for American gold had substantially little effect on the volume of free gold at the disposal ot the board. The Herald-Tribune’s financial editor states that the Bank of England has been able to return approximately £20,000,000 of the £25,000,0u0 90-day credit obtained from the. Federal Reserve on August 8. This is considered to have removed some of the obstacles to the stabilisation of the pound sterling against the dollar.

“HEAP OF GOLD” HOARDING OF FUNDS HALF OF WORLD’S HOLDINGS NEW YORK, Sept, 4. The United States “Heap of Gold” has nmv risen to within £400,000 of the £1,000,000,000 mark, and, at the late of growth since the beginning of the year —just under £20,000,000 a month— it will be only a few months more before the United States iias a full half of tiie world’s holdings. Tlie inflow is still continuing strongly in spile of tljo establishment of exceptionally low money.: rates here, and of attempts in other ways of the Federal Reserve system to divert gold from this country, where it is not wanted, to others, where it is sorely needed. There is every prospect that it will continue to How in in large volume for some time, as the distressed countries, unable to meet their debts hero with goods or services or to refund them with security notations in this market, are forced to send gold instead. The next largo import of gold expected is £10,000,G00 worth from Argentina, the shipment of which, in ' £2,000,000 lots, will begin on Monday. The £10,000,000 is in repayment of a loan due, in this city. Mcanwhi]o the hoarding of funds in this country which might be used in part for investment in foreign and domestic security issues goes on apace. Within the past week the Federal Reserve notes “.in circulation” have increased by £2,500,000, and there have been further heavy transfers of gold from the reserves of the reserve banks into circulation. Within a year the Federal Reserve notes technically described us “in circulation” have increased by £118,000,000, and there has been a like expansion in other forms of currency. Some of this increase in currency has gone to increase the stocks of money in the banks in sections of the country where runs rin deposits have occurred, but much has gone into hoarding.