FLOW OF CAPITAL

Waikato Times, Volume 124, Issue 20728, 11 February 1939, Page 7

FLOW OF CAPITAL

MONEY FROM ABROAD AMERICAN STATISTICS GOOD TRADE BALANCE (Untied Press Assn.—Elec. Tel. Copyright) WASHINGTON. Feb 9 Statistics of more than usual Interest to the American financial commnnity have been issued simultaneously by three Government agencies. The Federal Reserve Bank announced that 4.200.000,000 dollars of net capital entered the United States from abroad from 1933 to date, but “ only a limited amount now* represent* nervous foreign money ready to leave the United States as soon as conditions abroad become favourable.” One-third of the inflow represent* the liquidation of American assets abroad, a third represents foreign buying of American securities, and the other third is so-called floating money. The gold inflow to the United States over the period totalled 7.700.000,000 dollars, of which 2.100,000.000 represented a favourable trade balance. The Secretary of the Treasury. Mr Morgenthau. announced that the operation of the 2,000,000.000 dollars stabilisation fund since 1934, showed a profit of 12,000,000 dollars after all expenses had been met. although the fund never operated for the purpose of profit but strictly for stabilisation. The Securities ,md Exchange Commission announced that the net loss to investors from all types of investment trusts in the United States from 1927 to 1935 totalled 2.900.000.000 dollars, of 7.900,000,000 dollars invested.