New-York tribune., 1919-06-04
Britain Resumes
Cold Shipments
To United States
First Consignment in More
Than Two Years Is Re.
ceived Here 10 Help
Settle the Export Balance

Gold shipments to the United States
for British government account re-
aumed yesterday after lapse of more
than two years. when $500 900 in bars
arrived from Ottawa, Canada This
represented the initial shipment on a
movement of metal to New York from
Ottawa which will total approximately
s1S,o00.000. The gold was handled here
oy j. P. Morgan &, Co., and was turned
into the local Assay Office
Yesterdays consignment of gold was
the first large shipment to this coun-
try on British government account
since early in 1917, when a movement
that totalled almost 81 900 900 900 came
TO an end with the entrance of the
United States into the war
Surprise to Bankers
Resumption of the movement of gold
came as a surprise, even the bankers
handling the shipment having little ad-
vance information regarding the con-
signment. The fact that gold is actu-
ally being shipped here for British &C
count was accepted by the bankers as
indicating that Great Britain is pre-
pared to pay portion of the large ad-
verse balance running against her in
g. her trade relations with the United
States IN hard metal.
Some months ago it was reported
that large portion of the output of
the British gold mines in South Africa
= y-:A
and it is believed that the metal that
r came through yesterday represents vir-
gin metal from the Cape.
Before the United States entered the
war Great Britain sent hundreds of
millions of dollars worth of gold to
this country TO pay for portion of
the large war purchases made here
Shipments became unnecessary after
the United States entered the war and
adopted policy of extending liberal
credits to the Allies.
Up until March 90 the British gov
> ernment for more than three years
maintained an artificial control of the
sterling exchange market AS a result
sterling exchange rates were pegged
around s476l2. With the abandon
ment Of the control of sterling in
March rates declined sharply, and ster
ling bills were quoted yesterday a,
S4.621z. It is believed that the re-
snmption Of gold shipments is par,
OF new programme adopted by the
British government to hold sterling
rates from going much further.
TO Stabilize Exchange
A banker commenting on the golc
movement said yesterday: This is the
only way England can stabilize ster!ins
exchange now in this market, AS Ions
as the discount rate Is maintained at s
higher level here than in London ther,
- no inducement for the movement ot
, funds from New York to the British
money market. England cannot shir
foods IN sufficient quantity, so for tn.
present she must ship gold to help rec
tiy the unfavorable balance runnins
against her"
Large amounts Of gold are said to b,
g, stored IN Ottawa 70 the credit of tn,
Bank Of England which are availabl,
for shipment 10 New York in the even
. that the British Treasury decl5es t,
continue the movement.
bankers In this country do not favo
the importation of gold on large scale
ns they mold tlat there ig already to,
much gold in the country and tha
further additions to reserves will tent
10 produce greater imitation.