New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-10
Britain Resumes
Shipment of Gold
To This Country
First Consignment of $l6,-
100000 Will Be Fol
lowed by Others

The first gold shipped into the coun-
try for British account since the United
States cast her lot with the Allies
reached Now York b. rail yesterday IN
the form Of $16,0O0,000 consignment
Of bars from the Bank Of England's de
pository at Ottawa. Canada. Part OF
the metal was deposited at the Federal
Reserve Bank of New York and part at
the b-Treasury. The shipment was
handled by j. F. Morgan Co., fiscal
agents in the United States of the Brit
ish Treasury. who have had charge OF
the previous movements in this direc-
ton.
Resumption Of the gold influx so
soon after the United States govern
ment had taker up the role Of banker
to the Allies ca ,ed surprise in bank
ing circles. Among well informed
bankers it had been the general under
standing that the new dollar credits
which this government has already adj
vanced and will advance in the future
TO Great Britain would provide SUI
ficient funds TO meet all the needs OF
the British in this market. This APP
parently is not the case, as it was
stated authoritatively that moderate
imports of gold on British account
might be expected from now on.
Sale of Sterling Bills Heavy
The gold that is shipped here, it IS
asserted. will supplement the large
credits Britain is now obtaining from
the American government. The metal
will be used in the sterilization Of the
sterling exchange market. 1t is under
stood that heavy sales Of sterling eX-
change bills here in the last few days
made it necessary for the bankers who
have charge Of the programme for
maintaining sterling rates to bring
more gold into the country. The move
mcnt which started with yesterdays
shipment is not. however, expected to
reach the proportions of the influx be-
tore the United States entered the war
Another reason which is said to have
PROMPTED the British government 70
resume the shipments TO the Unlted
States at this time has 70 do with the
money market. Up until recently golu
shipments in this direction have Deeh
so regulated as to keep money rates
easv here. thus facilitating the floating
Of British and other Allied dollar loans
Since the influx ceased more than
month ago and the United States be,
gan to borrow on its own and Allle1
account. money rates have ST hened
sharply. rising from Pr to per cent
md higher. IL was pointed out yester-
day that with money rates moving up
ward there would seem TO be almost as
much reason now for continuance OF
the shipments. II is believed that local
bankers have advised the British of the
necessity of such course Of action
Much Gold in Canada
l. is known that Great Britain has
large gold reserves on deposit in Can
ada. supplied partly through arrivals
there Of virgin gold from the South
African mines and partly from ship
ments from LONDON and Paris. Rus
STA. too. has contributed to the Ottawa
pool. and early this year it was esti-
mated that the gold here in reserve at
that city to be released to the United
States as the necessity arose reached
half a billion dollars. The actual fig
ures were never known, owing to the
secrecy thrown about the proceeding by
the British government.
Up to April 3, the last date on which
gold was shipped into the United States
on British account. consignments re-
ceived here and at Philadelphia by J. T.
Morgan & Co., representing the British
Treasury. aggregated more than $50
coo, 900. or at a rate of more than $780,
10000 a month Since January /. 1918,
gold imports into the United States
from all quarters have. including yes
terday's S16.000.000, reached a total OF
S1,450,OO 900 The great bulk of this
has been shipped here on British gov
eminent account.