AMERICA'S FLOOD OF GOLD.

Taranaki Daily News, 30 November 1915, Page 2

AMERICA'S FLOOD OF GOLD.

ONE OF TIIK SINEWS OF WAR. TRUCK-LOADS OF SOVEREIGNS. Mostof the great gold producing countries of the world are British possessions, and that fact explains why it is possible to swamp America with gold if she wishes. America is afraid of receiving too much gold, for which she could not find use. and which must lie unproductive. It is for this reason that the Anglo-British loan was welcomed as a corrective of exchange \ nines. But though in the ultimate event must be paid for with other goods, gold is still pouring into America from evengold mine in the British Dominions, and as an indication of the high pressure, at which the gold mines are 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 .'>.000.(1(10 English sovereigns arrived at the Xew York assay olliec, from Canada, consigned to J. P. Morgan and Co., financial agents for the British Government. This shipment is by far the largest consignment of the present movement (savs the ,W\v York Kveniii!.' i'ost). The previously largest sliipment amounted to t.'i.!)00,000. There had been a cessation of the 'London consignments of gold to .f, 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 been coming in in move 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 British sources. There i? a steady stream of the motal 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 Philadelphia mint ana 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 station to the Assay Office, where a crowd gathered to watch the unloading. The gold wa:; packed in 1000 boxes, each of which contained £20,000.