AMERICA TO DISCOURAGE FLOW OF GOLD

Hawke's Bay Herald-Tribune, Issue 138, 28 June 1937, Page 7

AMERICA TO DISCOURAGE FLOW OF GOLD

(Beceived 28, 8.45 a.m.) WASH1NGTON, June 27. The Washington correspondent of the Kew York Times says that officials of the United States Government have deemed the increase. in the British Exchange Equalisation Fund to be a cnovev to promote the contihuanee of effective co-operation between Britain and Ainerica under the tri-partite agreement, which will enable Britain to con"tinue to make the same amount of purchases or even iucrease them and thereby lighten the flow of gold into Anierica. The Treasury is congidering legisla"tion wbieh will block some forms of •vasipn of taxation and likewise discourage the flow of unwanted gold into the United States, Ifc is believed that the hearings of the tax evasion cases by Congress may result in increased withholdings of taxes against earnings of foreign capital in sddition to tbe more rigid collection of taxes*. This is expectod to discourage foreign speculation and investment here, whieh the Treasury belieyes is the ehief factor in the heavy flow of gold. It is believed, however, that in view of the State Department's present reciprocal poliey an increase in taxes is certain to result in a similar increase in taxes abroad against United States inyestments earnings.