EXPORT OF GOLD

Hokitika Guardian, 11 October 1932, Page 5

EXPORT OF GOLD

FROM AMERICA SHIPMENTS HOLD NO MENACE. (United Press Association—l3y Electric Telegraph— Copyright.) WASHINGTON, October 10. At a conference between a Treasury official and pressmen to-day, it was stated that the United States was prepared to withstand a considerable further gold drain, without endangering in any way the American economic structure. Hu was intimated the chief threat appeared to be the withdrawal of foreign short-term investments here, although these and ioreign gold balances in The United States have already fallen to t comparatively low level in the last two years.

It is pointed out that the American monetary gold stock have increased by 292,000,000 dollars since the low point of the year (June 15). They now total 4201 millions, and are ,only' 441 millions lower than a year ago. The United States lost 1031 millions in gold between June 30, 1931, and June 15, 1932. Some officials even feel that the withdrawal of all the foreign gold would not endnnger the American economic structure. Only a virtual panic could drive the United States off the gold standard now. The officials would mnko no comment* on the fact that Senator Glass has issued a statement that last winter, Administration officials had told him that France could “withdraw'the balance' of her earmarked gold and go to hell with it.” Mention was made of ..the fact that Mr Hoover’s gold statements at Des Moines were riiisinterpreted in Europe as having some bearing on the country’s financial position at the present time. It is pointed out thal Mr Hoover referred to the gold movements long since reversed. Government economists see no justification for the dollar raid this time. FURTHER SLUMP IN PRICES. WASHINGTON,' October 8. There appeared no let-up today in the liquidation of- wheat on the Chicago Board of Trade, with December deliveries 14 cents below yesterday, and six cents below Tuesday. Cotton broke two dollars a bale in New York, principally upon the increased Government crop-estimate. Stock market I prices /reflected- the commodity situation, with copper shares and important industrials lower. There was active selling of United States Government bonds, causing price,s to sag, and carrying foreign issues with them, Australian Commonwealth fives dropped fractionally. The dollar was down in relation to the French franc, towards a level where it would be -profitable for the French to take American gold, Despite a continued downward movement in commodity prices, and on the New York Stock Exchange, as well as the unremitting pressure of the American dollar in the foreign markets, today, Government ’officials, principally o? the Treasury, emphatically denied an impression said to have gamed currency in certain quarters that the United States was unprepared to withstand any further considerable withdrawals of gold at the present time.