The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-05-27
GOLD, AND BOND SALES.

Financial reports from Wall Street
indicate that France is again buying
gold in New York. The final ship
ment Of 100000 on account Of the
$40 100000 which France bought in
New York was no sooner safely sent
across the ocean, than another $2,00O,'
900 was consigned to France. This
means undoubtedly that the Bank Of
France foresees Il very great demand
for the borrowing Of money, and is de
termined to strengthen itself, even to
the payment of considerable premiums
to get gold The suggestion is made
that the Bank Of France has entered
upon programme of buying $5,000,000
III gold a month in New York, and that
this programme VIII be adhered to un.
til the bank considers itself entirely
secure in gold holdings. The probabil
ity is that the reinforcement Of its
gold reserves insistently pursued by
the Bank of France is to provide for
the future rather than to meet any
immediate importunate demand, al"
though 1t is certain that the Bank of
France lent money to Germany on such
a scale as to shut itself out from any
increase in its bank holdings for the
past year, the gold held by that bank
on May 10Th being less than 81 100000
above the gold held by it year ago,
this being far below the increase in
the gold holdings of other great Eu,
ropean banks during the year. The Ma
tional Bank Of Germany increased it's
gold holdings during the same period
by upwards of $20,0OO,000
With regard to the alleged plethora
OF gold production, we note a summing
up of the facts in an address delivered
by Vice-President Joseph T. Talbert, of
the National City Bank of New York,
before the Bankers Club of Detroit on
May 9th, which sheds an Illuminating
light upon the production of gold and
where the gold goes, as follows;
As already pointed out, India is now
taking from London slightly more than a
quarter OF the worlds gold production
inns gold is absorbed in trade, or is
hoarded, and scarcely any returns. The
same is true OF gold sent TO Egypt and
TO Soutn American States. particularly Of
that sent TO Argentina In exchange for
food products and raw materials We
begin 10 understand now that there is
no ,overproducton OF gold. but that II
trade continues to expand and the de-
mand for gold increases in the same ratio
as during the past few years, we shall
be threa tened with. ii not actually con-
fronted by a real shortage. For instance
= ht,f1 r.Ic Nr,
OF population. begins to awaken and to
realize the necessity as she ultimately
VIII. OF placing the finances of the new
republic upon a gold basis TO insure ma
tiona stability and prosperity. and un-
dertakes to procure the necessary gold
from Europe or America. we shall witness
some very interesting and important
world phenomena. The whole civilized
world will be as greatly and vitally inter
ested in this movement as London has
been interested In the gold requirements
of India. One immediate effect OF the
reduced stocks of American and European
gold Will be TO bring about a sharp de-
cline in prices Prices In the natural
order of things cannot go on increasing
OF labor there is. and must be a limit, and
that limit is determined by the availa BILE
supply Of gold which in turn determines
and limits credit supply
New York City's sale of $40 100000
of Az per cent bonds was successful in
a way. but was not particularly en-
couragiug to those who looked for a
great and brilliant sale, The loan was
over subscribed by $30000,000, which
contrasts poorly with the $266,000,000
bond sale made by New York last year
The average price obtained by the city
last week for its $4,000 900 bonds
was only 1O0.159 being a less pre-
MUM than that received in any recent
years for bonds bearing AZ per cent
interest. The income yield is therefore
as explained, the highest in many
years. The basis of this income will
be about 449, the merest trifle less
than Az per cent.
The city will apply $4,000, 900 of
the money received from this bond is
sue for general purposes, and $4,000. |
600 on water supply. There were 400
bidders for the bonds, among them
number Of the strongest financial in.
in New York.