INFLOW OF CAPITAL

Poverty Bay Herald, Volume LXVI, Issue 19861, 11 February 1939, Page 5

INFLOW OF CAPITAL

AMERICA BENEFITS INVESTMENT ISSUES (Reed. Feb. 11, 9 a.m.) WASHINGTON, Feb. 9. Statistics of more than usual interest to the American financial community were issued simultaneously to-day by three Government agencies. The Federal Reserve Board announced that £840.000.000 net capital had entered the United States from abroad in the period from 1933 to date. The statement continued: "Only a limited amount now represent* nervous foreign money which is ready to leave the United States as soon a,>" conditions abroad become more (favourable. One-third of the inflow represents the liquidation of American securities and one-third so-call*d floating money."

The gold inflow into the United States during the period totalled £1,540,000,000, of which £420.000,000 represents the favourable trade balance.

The .Secretary of the Treasury, Mr. Henry Morganthau, anounced that th« operation of the £400,000,000 stabilisation fund since 1934 showed 3 profit of £2,400,000 after all expenses had been allowed for, although the fund was never operated tor profit but strictly for stabilisation. The Securities Exchange Commission announced that the net loss to investors from all types of investment trusts in the United States during the period from 1927 to 1935 totalled £580,000,000, of the £1,580,000,000 invested.