HUGE U.S. GOLD LOSSES

Poverty Bay Herald, Volume LV, Issue 17640, 2 December 1931, Page 4

HUGE U.S. GOLD LOSSES

EXPORTS TO FRANCE £120,000,000 SINCE SEPTEMBER NEW YORK, Oct. 17. America has lost gold to the value of about 007,000,000 dollars (over £120,000 000 at par of exchange) since Brea! Britain suspended the gold standard on September 21. Of this amount, 1194.000.000 dollars (about £79,000.000) remains in the Federal Reserve Banks under earmark for foreign account. The loss of gold this week amounts to 2ia.400.000 dollars (£42.700 000 imnvna.l), of which 114.000,000 dollars (£22 $00,000) has been sent to France. As a result of a decrease in the gold reserves of some 200,000 000 dollars and an increase in liabilities in the form of notes in circulation and deposits. the Federal Reserve Banks’ ratio of reserves to liabilities fell this week to 01.8 per cent., as compared with 80.9 per cent, a year ago and 07.1 per cent, a week ago. The extent to which the* Federal Reserve Banks have taken up bankers’ bills in order to support, the market is shown by an increase of 000,000,000 dollars in Iheiir bill holdings since the middle of August. The Federal Reserve B.inks. now hold these bills to a value of 730,000.000 dollars, a figure which constitutes a record. On the other hand, the Federal Reserve Banks’ liability for bills held by foreign banks- is now only 40.571,000 dollars, a decrease of 192,000,000 dollars since Great Britain abandoned Iho gold standard and of nearly 400,000,000 dollars in the year. This situation is duo to selling by foreign banks, who have been withdrawing their balances.

Exports of gold to-day amounted to nearly 45,000.000 dollars, including 27.348,000 dollars to France ami 10,330,000 dollars to Switzerland.