FINANCIAL POSITION.

Waimate Daily Advertiser, Volume XVIIII, Issue 447, 15 November 1916, Page 4

FINANCIAL POSITION.

AMERICAN MONhY MARKET. SOUTH AFRICAN GOLD VIA CANADA. Per Press Association—Copyright AUCKLND, Nov. 13. Mr Harold Beauchamp, who was a passenger by tlie Niagara, says that with the view of keeping down the rate of exchange against London, very large quantities of gold have recently been transferred from Canada to New York. Canada has been the channel through i which lias come nearly half df the gold j imported to the United States si nee the ; closo of 1914. Since then, the not imi ports of gold into the United States i have amounted to over £103,000,000. | The gold wl)icli has lately been com- ' ing to Canada is understood to be the output of tin l South African mines shipped to Canada and thence sent to the United States. These mines are said to he producing about £BOO,OOO a week. They are turning out enough in other works to provide a reserve in the United States against credts at a rate | o'f something over £200,000,000 a year. ! Owing to the way in which the gold { is accumulating in New York, tlie banki ers in that city have 'been unable to find profitable employment for Mieir funds ! in the United States, and recently they have been looking to London for temporary investments. No doubt, British Treasury Bills, yielding 5} per cent, to 6 per cent, per annum, according to term, would prove tempting when the rate for all money to-day in New York is round about 2.V pit cent per annum, with a small demand. Temporarily at least, New York, ;vs a money ! centre, has taken the place of London, j hut as the result of observations and ' conversations I had with leading bankers, I am inclined to the opinion that London will regain her financial supremacy with'n a measurable distance from the close of the war. Meanwhile, having regard to the wonderfuj expansion in exports from the United States to Great Britain and other countries, one does not wonder at the , amazing growth in the wealth of ' America and New York in particular.