The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-20

In the gold holdings OF Great Britain
as given are included not only the
amount in the Issue department but
the amount set aside for the redemp-
ton of Government war currency
notes. Ii should also be added that
the lapse in the publication of the
statements OF the Bank of Austria
Hungary since last summer has led
to charges 10y serious English fnancia
critics hat the roii in the II pshuig
bank has been transferred To- the Ger
man Reichsbans. which II true would
correspoadingly reduce the aggregate
holdings Of the two institutions as
given above.
ignoring this point it will be seen
that in round figures the total gold
stocks OF the Entente are equivalent
to about SO 400. 900. 900 in our curren v,
while those of the Germanic combina-
ton are a little under 81. 500, 900. 900.
The holdings of the central banks
alone are so $50. 00O. 900 for the
Entente and less than $500, 100000 for
the TWO GcrmanIc empires. But tho
English have a larger sum OF gold
which might readily be made avail
able to the Bank OF England. Sir Ed
ward II. Holden recently estimated
that the joint stock banks of the
United Kingdom owned at least 30
millions sterling Of god
1t would therefore seem well within
the power Of the British bankers 20
spare enough Of the precious metal
20 I'll the void in the supply of com
mercial and financial bills. 1t required
merely the payment Of tho $50. 0o0 600
New York city notes in gold to foreign
holders 20 break sterling last autumn
when IL was selling hetween s. and So.
The 100000 900 gold exchange pool
additionally formed under the auspices
at tie Federal Reserve Board. II Is
true, exerted a favorable moral innu-
cnce. but actually only $40, 600 ,000
was necessary To he shipped by II 70
Ottawa. And while IL Is almost I'm
possible now to effect an international
shifting Of the actual metal there
must be n large fund in the Bank OF
England gency at hat city from
which transfers could be made TO New
York.
I; Is true mat the position Of Br'-
ain and the Tinted states to-day Is
potentially and actually different from
that OF last autumn When we adjusted
our exchange problem we were facing
an inevitable shifting n the visible
trade balance to our advantage. Tn
war vii, necessitate continued large
foreign purchases from this country
mus promising a long continued ex'
cess Of merchandise exports from
these shores. But England's trad'
position Is far from hopeless. Th'
spring Is likely to bring about n re
lease OF an estimated $50. 600 .00i
bushels Of Russian wheat, now TIED
up al home Gor the fail Of Constants
nople 10 the Allies is morally as
sured) irrespective Of increased snip
ments from A~rchangel Here will re
suit a lessening Of British needs 10
American f~oodstufs. And II IN,
spring also brings. Ms doubtless tn
majority Of observers believe y vii
bring, decided progress OF the allie
arms in France or in Poland. conf
dence Will revive in England and he
manufacturers will he encouraged {,
produce more goods salable in he
!. colonies and elsewhere.
British fnanciers are always insist
ent upon the observance Of economi
laws. They complain of Germany
past gold imports AT an economic loss
/. They would commit the same error (
they preserved their stocks Of gol
, only by holding Il AT a premium
t within the empire. There Is d1nge
: IN this 10 their own domestic hnancia
Z fabric. The creation Of n big crodi
, In New York TO the Bank OF England
/, temporarily postponing inevitable set
Elements on balance. 10 n device whic
; would be regarded as a mRkeshif
( The strongest reinforcement to Brit
ish credit would he 20 let gold current
] flow MS economic conditions dictate,
even though American imports Of IN
metal AZ present would merely add
our embarrassment Of riches. An
this the Allies can afford n do withou
dangerously compromising their su
premacy over Germany in gold stock
and the sources for acquiring add
tional supplies.
JAMES g. II. UMsrED.
New YORK. February 10.