FLOW OF CAPITAL

Wairarapa Times-Age, 11 February 1939, Page 7

FLOW OF CAPITAL

LARGE AMOUNTS ENTERING

UNITED STATES

LIMITED SUMS OF “NERVOUS FOREIGN MONEY.

STABILISATION FUND SHOWS PROFIT.

By Telegraph—Press Association—Copyright WASHINGTON, February 10.

Statistics of more than usual interest to the American financial community were issued simultaneously by three Government agencies today.

The Federal Reserve Bank announced that 4,200,000,000 dollars net capital entered the United States from abroad in the period 1933 to date, but “only a limited amount now represents nervous foreign money ready to leave the United States as soon as conditions abroad becomes more favourable.” One third of the inflow represents the liquidation of American assets abroad, onethird foreign buying American securities, and one-third so-called floating money. The gold inflow into the United States during the same period totalled 7,700,000,000 dollars, of which 2,100.000,00 dollars represented the favourable trade balance.

The Secretary of the Treasury, MiHenry Morgenthau, announced that the operation of the 2,000,000,000 dollar stabilisation fund since 1934 showed a profit of 12,000,000 dollars for, though the fund was never operated for a profit, but strictly for stabilisation purposes. The Securities and Exchange Commission announced.that the net loss to investors from all types of investment trusts in the United States during the period 1927 to 1935, totalled 2,900,000,000 dollars of the 7,900,000,000 dollars invested.