SCARCITY OF GOLD.

King Country Chronicle, Volume VII, Issue 605, 24 September 1913, Page 3

SCARCITY OF GOLD.

The hoarding practised by the French peasantry has forced the Bank of France to replenish ita stock of gold. The United States has been one source of supply, the amount,, shipped to Paris from.New York from January Ist to July 18th being £8,300,000 out of a total of £13,300,000 exported to all countries. The bulk of these transactions with Paris appears to be articfiial, the level of exchanges, accordin to "Bradstreets," being below the ij point at which specie exports would yieid a profit to the bankers interested. The exact nature of the inducements which specie exports would yield a profit of to the bankers interested. The exact nature of th inducements which the Bank of France held out to attract gold from the United States are necessarily unknown, but no doubt exists that the equivalent of a substantial premium for making the transfers has had to be paid. The scarcity of gold currency in France cumpelled the minting of some of the metal held by the central institution, the replacement of which was neeesjary in order that the strength of the bank might not be impaired. As the London money market was being heavily drawn upon by Germany, that qoruee of gold supply was debarred to France for obvious reasons. Consequently recourse was had to New York, where les3 disturbance would be caused by the French demand than in any other centre. A somewhat interesting position haa arisen m this connection owing to ihe last engagement for Paris having reduced the stock of gold bars in the United States Treasury almost to a vanishing point. It remains to be seen whether the premium which the Dzv-; ot France has offered will he raise;; aurhciently to overcome the riisadvanr.'.g" and aa- ! ditionsl expanse involved in a ccntinuj ance or the o!]i;v.T!:-l movement; ot the ! yellow me-UK with American gold com ! taKins ths place of tho bare hitherto I coiU'tUutinp: the shipments.