The Barre daily times. (Barre, Vt.) 1897-1959, 1915-09-08
Effect Expected from Brit
ish Gold Shipments
to u. S.
PRESENT RESERVE
HIGH IN COUNTRY
Some, However, Going for
Crop MISUNDERSTANDING
Bill to America

New York, Sept. s.-International
banking here did not altogether relish
Yesterday the news from Portland, Me-,
that more than sos 100000 in gold coin
was speeding to New York to bolster
Great Britain's credits in this country.
This, 1t is alleged, is the largest single
gold shipment ever made here by for
eign power, IL comes, it was said, at n
time when gold is wanted less than ever
before in the history Of the country.
Bringing this mountain Of gold to New
York at time when the normal de-
mands of business are lower than usual,
and when the vaults OF the country are
already choking with gold, it is feared,
accelerate the tendency toward imitation
and speculation. Already, according to
the weekly statement of the federal re-
serve board as Of Sept. 3, the gold re-
serve in national banks has reached the
total of $26S, 100000.
This mass OF treasure, ii was pointed
out. cannot remain idle. Seasonal de-
mands, such as the increased demand
for money in the dry goods trade and
the movement of the great corn and
wheat crops, will decrease the sum, but
will still leave, it is believed, a huge
amount which must be put to work in
other ways. A strong temptation, 1t
was feared, would thus be presented
TO employ the big remaining surplus in
speculative enterprises which would tend
toward bringing about period of in
fation and fictitious values whose col
lapse would have an unhealthy effect
upon business in general.
While pay for the supplies sent TO
Great Britain is, of course, both wanted
and expected, New York bankers do not
want to be paid in gold. They would
much prefer to lend Great Britain the
money to pay them taking high-class
American securities as collateral for this
loan.
In the face Of England's great ship
ment of gold, and the accompanying Sc
eurities. aggregating more than SS0000,-
600, and of the conviction that other
huge shipments would soon follow, the
foreign exchange rate on sterling opened
yesterday nj loss of one cent from Sat
urday's choice Of S467 Within two
hours il lost two cents more, going down
to S464 Francs remained at virtually
the same figures, 500. This, too, was
the case with Tires, which we're quoted
at 6.46, while Reichsmarks were a trihe
stronger at 81. Quotations, however,
were said 10 be purely nominal.
An index Of Great Britain's huge vol
ume Of purchases in this country was af-
forded BY this shipment of gold and Sc
curities and the two preceding ship
ments, which aggregated approximately
sIs0,000,000. This sum has reached
America since Aug, 2. In round figures,
100000, 100000 could be carried without
the exchange rate on cash
basis of 100000 TO sl0,000.00O on hand
here. Some authorities say that the war
time basis is 25 per cent. Should such
b. the case Great Britain's three ship
ments OF the past few weeks would indi-
cate, should the exchange rate remain
near normal. that she had bought goods
10 the value Of s72O0Oo,OO0 In America.
This is believed 10 be below the mini
mum; the exchange rate il al present
u cents under normal Other factors
entering into the situation lead TO the
belief that England's bin TO America at
the present time Is in the neighborhood
of a billion dollars Some OF this big
bin. il was said, probably was for the
account Of France. An arrangement be.
tween England and France for payment
,f bills due here exists, IL Is believed, but
- details are not known.