INFLUX OF MONEY AND GOLD

Southland Times, Issue 23741, 13 February 1939, Page 7

INFLUX OF MONEY AND GOLD

STATISTICS PUBLISHED AT WASHINGTON WASHINGTON, February 10. Statistics of more than usual interest to the American financial community were issued simultaneously by three Government agencies.' The Federal Reserve announced that 4,200,000,000 dollars entered the United States from abroad in the period from 1933 to date, but only a limited amount now represents nervous foreign money ready to leave the United States as soon as conditions abroad become more favourable. One-third of the influx represents liquidation of American assets abroad, one-third foreign buying of American securities, and one-third “floating” money. The gold influx to the United States during the period was 7,700,000,000 dollars, of which 2,100,000,000 dollars represented the favourable trade balance.

The Secretary of the Treasury (Mr Henry Morgenthau) announced that operation of the stabilization fund (2,000,000,000 dollars) since 1934 showed a profit of 12,000,000 dollars after all expenses had been allowed for, although the fund was never operated foi profit but strictly for stabilization. The Securities Exchange Commission announced that the net loss to investors from all types of investment trusts in the United States during the period 1927 to 1935 was 2,900,000,000 dollars of the 7,900,000,000 dollars invested.