THE MONEY MARKET

Taranaki Daily News, 16 November 1916, Page 8

THE MONEY MARKET

AND A GLUT 01 GOLD. By Telegraph.—Press Association. Auckland, November 13. Mr. Harold Beauehamp, who is a passenger by ihe Niagara, says that with a view to keeping down the Tate of exchange . against London, very large quantities of gold were recently transferred from Canada to New York. Canada has been the channel through which has coma nearly half ot the gold imports to tlio United States since the close of 101-1. • Since then the net imporis of gold into the United States have amounted to over £103,090,009. The gold which has lately been coming to Canada is understood to be the output of South African mines shipped to Canc.'.a, and thence sent to the United States. These mines arc said to he producing about £BOO,OOO a week. They are turning out enough, in othei words, to provide a reserve in the United States against a credit at the rate of something ovei £-200.C'30.0C£l a year. Owing to the \vay in which gold is accumulating in New York the hankers in that city have been unable to find profitable employment for their funds in the United States, and have recently been looking to London for temporary investments. No doubt British Treasury bills, yielding s'/i per cent, to 6 per cent, per annum, according to the teem, would prove tempting when the rate for call money to-day in New York is round about per cent. per annum, with small demand. There is at present ' a connection between bankers in Canada and New York.

"Temporarily at least," addeil Mr. Beauehamp, "New York as the money centre has taken the place of London, but as the result of observations and conversations I had with leading bankers, I incline to the opinion that London will regain her financial supremacy within measurable distance from the close of the war. Meanwhile, having regard to the wonderful expansion in exports from the United 'States to Great Britain and other countries, one does not wonder at the anit.7.:7:g growth in wealth of America, and Jew \ork in particular."'