New-York tribune., 1918-06-12
Britain Resumes
Gold Shipments
To United States
Reserve + Bank Receives
$5,000,OOO; First Consign-
ment in Many Months

The f1rst gold shipped into this coun-
try for British account since May,
1917, reached New York by rail yes
terday in the form of $4,000, 900 con-
signment of bars from the Bank of
England's special depository at Ot-
tawa, Canada. The metal was de-
posted at the Federal Reserve Bank
of New York. Further shipments are
expected and in banking circles it is
said that the total gold TO be brought
in from Canada on this movement will
probably reach large figures.
Officials of the local reserve bank
the probable extent of the ltcvement
in this direction. 1t was stated, how
ever, that the gold already brought in
is part of the $52,500,000 which the
Bank of England has been holding for
the account of the Federal Reserve
banks. This gold deposit in the Bank
OF England arose from the liquidation
of a loan which a syndicate of banks
in London obtained from bankers here
early in the war. When it was paid
off the funds were deposited in the
Bank of England and the Federal Re-
serve institutions here settled with
VIZ CIeullOI INSTITUTIONS III VIC Oulleu
States. The share of gold to the credit
of the New York Federal Reserve Bank
was $18,112,500.
Significant Development
Resumption of gold imports from
Canada at this time is viewed in New
York banking circles as a development
of great significance. The opinion is
expressed in important quarters that
bo chi Ill IL,
result of the new agreement entered
into between the British government
and the United States. whereby the
latter will take over for the most
part the financing of loans to the
Allies, which England has been DO
ing for several months. Reginald Nc
Kenna, Chancellor Of the British Ex-
chequer, recently announced that Eng
lands need for loans from the United
States had for some time past been
due largely to the calls for financial
assistance from the other Allies. It
was inferred from this that Great
ments were concerned, is now less
dependent upon advances from the
United States.
- Big Stock in Ottawa
1t has been known for many months
that Great Britain has been accumulat-
ing a huge gold store at Ottawa. Since
ments to the United States for British
account the virgin gold produced in
the rich South African mines has been
steadily flowing into the Ottawa de-
positcry of the Bank of England. Re-
cent estimates have placed the stock
of British gold at Ottawa at total of
anywhere from $150,000,000 to $780,
100000.
Before the United States entered the
war Great Britain shipped a huge
volume of gold to this country, the
bulk of it coming from Canada. For
several months prior to our entrance
faccount approximated S10O,O00,000 a
month. The credits established here
through the gold shipments were sup
plemented by the fotation of several
large loans, which were sold to the
American public.
Since the outbreak of the war in
1914 the influx of gold from all sources
into the United States has reached a
total of approximately $1,725, 100000.
Of this S450,000,000 was received in
1915, $685., 100000 in 1916 and $685.
100000 in 1917. Last year the impor-
tations dropped to practically nothing
1
when the United States began the sys-
| temctic extension of credits to Great
Britain and the other allies. The bulk
Of the gold shipped here has, as might
be expected in view of the heavy war
purchases of that government in this
market, been for British account. Not
all the gold gained by the United
States on balance since the war began
has been retained, however, the latest
figures showing that American exports
Of the metal from August 1, 1914, to
date having amounted to approximately
$3.50, 900, 900.
Bankers said yesterday that in the
event that the inflow of gold reaches
large proportions, as is not improbable,
it should have a favorable effect on
money rates in this market, as the
metal will furnish the basis for sub
stantal expansion in banking credits
New Haven Equipment Sold
]. P. Morgan e. Co., Kiddcr, Peabody