The Washington herald., 1919-06-19
CANADIAN GOLD
COMING into US.
Influx Shows American
Readjustment Begun,
Says Holland.

been in Canada when the telegraphic
a summons came which requested him
to appear before the Senate investi-
eating committee and testify. II he
had any testimony to offer, respecting
his knowledge of the manner in the
treaty OF peace reached the United
: States. and whether he and his part
ners had anything to do with that
mysterious reception Whether Mr..
: Morgan was really in Canada at the
= time or not. Is Of no consequence in
> view OF the fact that he was, II the
understanding in the financial district
be correct. arranging for the ship
.-ment from Canada to New York of
gold. perhaps in as large an amount
= as s59. .oo0. 900 So far as industry.
commerce and financial benefits are
concerned. the negotiations for the
shipment OF gold from Canada repre-
senting London. to the United States
Is regarded Of far greater Importance
than the clearing away OF the myS-
,ntery In which the passing, of the
treaty from Europe to private hands
in the United States was enshrouded.
This movement of gold from Can
ada. where IL has remained for
some time. Canada being the trustee
7for London. Is spoken OF as one of
revelations recently made which
serve to show that we are far on
the way towards thorough readjust-
ment of Industrial. commercial and
financial conditions. There have
been. and are now. many undertak-
ings sponsored by banks and men of
capital which represent the general
trend towards speedy readjustment.
OF some of these the public has no
knowledge. All of them have been
so rapidly organized and are in
p. process of such speedy development
that IL is no wonder that there Is
little realization on the part of the
public of the extent to which these
readjustments facilities have been
carried.
- Naturally enough. in view of the
import of gold from Canada. and OF
the part which Morgan has taken In
that movement. there comes recollec-
. ton Of a reverse movement which
took place within a few days or
weeks after the German armies be-
gan their march toward Paris. Then
Morgan was the leader. and his lead
ership involved the accumulation or
gold in the aggregate Of some s2OO.-
10000. so that IL could be shipped to
the credit OF New York City. whose
f. notes were about to come due In the
, london market. the city being at that
=time unable to buy exchange In sufii-
-cient amount to meet the obligations
There was left only one way to 90
that. and that way Morgan and his
associates took The American banks
- -co-operated. and a hundred millions
lin gold. approximately. were sent to
Ottawa. Thereby New York's credit
was protected.
Gold Coming This Way.
a, little later. approximated $780,
600. 900 was speedily accumulated
through the cooperation Of Ameri-
can banks and sent to Ottawa In
that way. American merchants and
importers who had imperative obli-
cations to meet in London and who
were unable to obtain exchanges
with which the obligations could be
met were protected and what SEEM
ed to be n serious crisis was ended.
No more gold. at least in any con-
siderable amount, was exported
from the United States during the
entire term of the war. Instead we
received hundreds of millions ana
the amount became so large that
many of the ablest and most con-
--servatiye bankers. even the FedLrar
Reserve Board. looked with some
apprehe nsion upon any further in
crease Of our gold in this way. We
had already accumulated somewhat
in excess OF $4,000, 100000 in gold
and no more was wanted. in fact
mot as much
Looking to RendJustment.
NoNv readiustrnent has berun And
there are countries of the world with
which the United States has already
large trade dealings presumably to be
Increased. Furthermore, II Is desirable
that such measures be taken as will
make il all the more easy for US to
stimulate our foreign trade. and also to
take wise steps toward the permanent
settlement of the debt which the
European nations owe to US. There
fore the government is releasing its
embargo upon the exports of Amer
lean gold and there came instant re-
s2onse to this movement.
Boston was on the spot. so to speak.
taking several millions in gold with in
tent to ship IL to South America. This
undoubtedly means much larger Bos-
ton imports of hides and wool. Both
of these commodities are in demand in
wool market in the United States.
New York, also, instantly responded.
having in view our trade with South
America and the necessity of f1nanc-
ing that trade through the export of
sold The United States Is making
some heavy purchases of raw ma
terial and OF coffee in the South Am
crican countries. and this trade to-
gether with the return trade. can be
sire moro easily handled IL We send
gold to South America Some Of the
experts are of the opinion that we
MAY be sent as much as fifty million,
perhaps more. Furthermore. the ex-
port Of gold to South America will
tend greatly to stimulate larger trade
between the United States and the
South American nations.
When readjustmtnts are further
advanced. the United States will
undoubtedly md II convenient and
rxTedIent to export gold to various
countries. Just at present exchange
conditions in most of the countries
Lre IN such shape that 1t IS not as
yet wise to export gold to them. But
gold may be shipped in any reason
able amount to South America, to
Sno.n and presumably to Japan.
There are reasons for surmising
that Japan is now contemplating the
purchase in the United States OF
commodities In large amounts, and
especially steel. whereas. on the
other hand. IL Is the common belief
that our imports from Japan are
sure to be greatly increased
The recen Mt shinmenfs Of gold from