OUTWARD FLOW OF GOLD

Timaru Herald, Volume CXLI, Issue 20335, 6 February 1936, Page 9

OUTWARD FLOW OF GOLD

LITTLE CONCERN IN

U. S. A. GOLDEN STREAM GOES TO EUROPE United Press Association—By Electric Telegraph—Copyright (Received February 5, 7.30 p.m.) WASHINGTON, February 4. The shipments of gold from the United States total approximately 6,000,000 dollars consigned to Holland and France. It is announced that 5,000,000 dollars more has been earmarked for shipment. A variety of forces worked to-day to check the weakness of the dollar. The franc failed to go as high as yesterday, chiefly owing to selling against gold shipments, while sterling went below 5.03 dollars, ostensibly as the result of the British equalisation fund working through Paris. Within limits, the United States Treasury looks with equanimity upon the weakness of the dollar. It is not very concerned over the outflow of gold, provided it continues at a moderate pace, because the American gold stores amounting to 10,000,000,000 dollars remain an enormous credit reservoir. In the meantime the depressed dollar will encourage the foreign purchases of American goods. CHECK ON INFLATION PRESIDENT PLANS TO CURTAIL LENDING United Press Association— By Electrio Telegraph—Copyright (Received February 5, 9.10 p.m.) WASHINGTON, February 4. As an indication that the President is not only determined to checkmate inflationary moves, but is also prepared to curtail the Government’s reflation activities, Mr Roosevelt announced to-day that he has ordered a survey of the Federal lending agencies, with a view to cancelling at least 1,000,000,000 dollars in lending authorisations. This is interpreted as meaning that the so-called "pump priming” activities in farm and home loan banks and »other Government organisations are near the end. It is understood that normal sources of credit are now open to legitimate borrowers.