The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-15

Excess notes. 81, :,st5s.o7s sc:5l7l. 500
Per cent. gold. si.si sos
In every instance the gold cover OF
the outstanding currency of the En-
tente Allies shows a larger ratio than
that Of Germany. II the gold holdings
and the paper circulation OF the Eng
lish. French and Russian banks were
consolidated there would be "A total
note issue of nearly 81, 000. 900, 900 and
a gold reserve OF nearly 81. 200, 900 900
"A gold ratio OF 36 IS per cent, gains
Germany's 3l.9l.
1t has been charged that. Just as
the German General STAFF has taken
over the direction of the AustTo-Hun-
garian army, SO the Reichsbank has
taken control OF Nienna's finances and
that the gold holdings reported by
this institution include part or all of
the gold Of the Bank Of Austria-IIun-
gary. The last published statement OF
the latter bank was OF date Of July
80. 1914. At that time the amount
of gold holdings was about $3.50. 00O.-
900. The increase in h stock OF the
Reichsbank since the beginning Of the
war has been about S25S, O0O, 900. 1t
Is not necessary to assume such 4
transfer to account for the Reichs-
banks gain. We know there was a
large internal circulation Of gold In
Germany to draw from and that pro-
digious efforts were made to collect
II in exchange for bank notes, not tho
least Of the means employed being
that intense governmental pressure to
which Germany has submitted now for
many years.
Pari passu with her splendid mill
tary mobilization. Germany demon
strated her great efficiency in organic
ing her gold resources While the
Reichsbank added SECS 900. 900 to the
gold in her vaults since the end of
July, 1914. the Bank Of France gained
less than s160, o00, 900, and the Bank
of Russia has lost gold.
With the same backwardness which
attended the completion OF their mill
tary preparations. the Entente Powers
are only now organizing their finan-
effectively. But the mo-
bilization begins AS Germany reaches
the end Of her tether. In August the
Reichsbank ceased to show It's pre-
vious sensational gains in gold. From
August Z to November 81 the increase
reported has averaged for the sixteen
weeks, roughly, $500, 900 a week. The
first appeal to the French people to
turn gold into the central reservoir
for patriotic reasons was made last
May. The loan OF victory"--the first
formal war loan OF the Government
has increased the surrender OF hoard
ings. In the eighteen weeks from Au-
gust 8 to December 3. 1915. the Bank
of France has expanded It's gold re-
serves at the average rate of $1,000
900 a week. There is no sign of any
letup in the influx.
John Bull has handled the situation
in his usual self-opinionated way. But
the increase Of 100 per cent. in its gold
holdings by the Bank OF England in
the last eighteen months has been eff
while London was pouring enor-
gold exports into the United
States. And az yet England has not
begun to commander her gold sup
plies. as Germany has done to the
practically final limit. Chancellor OF
the Exchequer MoKenna has lust
given n hint Of her reserve strength.
to a recent cable he stated
that the English banks on June 80.
1915, held 1851 .000. 900 In gold. against
900 on June 80. 1914, and that
the public held 1851, 900, 900. against
$500, O00, 900 on the respective dates.
These figures may ~ accepted Win |
reserve until we ascertain how
a fiscal inquiry by the British |