AMERICA’S FLOOD OF GOLD.

Taihape Daily Times, Volume 7, Issue 348, 29 November 1915, Page 4

AMERICA’S FLOOD OF GOLD.

cine op the sinews of war,

TRUCK-LOADS OF SOVEREIGNS. Most of the great gold-phoducing countries of the jwopld are British possessions, and tihat fact explains why it is possible to swamp America with gold if she wishes. America is afraid of receiving too much gold, for which must lie unproductive. It is for this reason that the AngloBritish loan was welcomed as a corrective of (exchange values. ; But though in the ultimate event goods must be paid for with other goods, gold is still pouring into America from every gold mine in the British Dominions, and as an indication of the high pressure at which the gold mines being worked, it may be mentioned that the output of gold from the Transvaal mines in August was £283,000 greater than in 1914, and had been exceeded by only five other months in history. All of this gold goes to the Bank of England’s branch reserve. A few weeks ago 5,000,000 English sovereigns arrived at the New York assay office, from Canada, consigned to J. P. Morgan and Company, financial agents for the British Government.

This shipment is by far the largest consignment of the present movement (says the New York “Evening Post”). The previous largest shipment , amounted to £3,900,000. There had been a cessation of the London consignments of gold to J. P. Morgan and Co. since September 8, but in the meantime it had been constantly reported that the Bank of England was releasing gold for America and the metal had beseeming in in more or less small lots consigned to other parties.

The gold-import movement has broadened out lately, so that the metal is now flowing into the country from all sides, but chiefly from B’ritish sources. There is a. steady stream of the metal arriving at San Francisco from Australasia, and it is understood that this movement will continue periodically until next February. After the gold has been weighed, it will be sent to the Philadelphit Mint and turned into American coins.

Apparently the gold, like the previous consignments, was transported to Halifax on a warship. It will be used to pay for war purchases and to stabilise exchange. Twenty-three trucks conveyed the gold from the railroad to the Assay Office, where a crowd gathered to watch the unloading. The gold was t>acked in 1000 boxes, each of which contained 25,000 dol.