New-York tribune., 1920-03-05
$50 Millions in
Allied Gold Due
Here by Oct. Is
England and France Expect
ed to Ship Bullion to
Prepare for Maturity of
Big War Loan of 1915
Exchange Rates Helped
Wall Street Looks for Ac-
ton to Improve Europe's
Financial Backing in u. S.

wall otreet heard yesterday tnat
Great Britain and France had decided
to ship great quantities Of gold to the
united States to prepare for the ma
turity. OF the Anglo-French loan of
$500,00o,000. Estimates Of the aggre-
gate influx expected varied, but in
some quarters it was predicted that at
least $260,0o0,000 Of the metal would
reach this country before October Is,
when the bonds come due.
At the Offices of j. P. Morgan 4 Co.,
the fiscal agents here for Great Britain
and France, it was said that the firm
had received no advices that could be
given out. However. it was indicated
that it would be surprising if the Brit
ish and French governments waited
until the last moment before preparing
TO meet the maturing joint obligation,
which was fioated in this country in
October, 1915.
AS result of the report Allied ex-
changes moved up to the highest levels
reached since the decline a month ago.
Sterling bills, quoted in New York on
Wednesday afternoon at S3.4475, yes
terday went as high as $3.50, and at
The close brought s35525. Francs
climbed sharply, and Belgian francs
and Italian lire moved up sympa-
thetically, though not so far. The
dollar would buy only 1880 French
francs at the close of trading yester-
day, compared with 14.16 on Wednes-
day.
Lacking official announcement of The
reported gold movement, some ex-
change bankers, explaining that the
market was narrow, attributed the rise
TO an accumulation of buying orders,
which had been withheld in anticipa-
tion of still lower rates. However, in
all quarters the prospect of a.resump-
tion of gold shipments was the domi-
nant topic.
Between 1915 and 1917 great quanti-
ties Of gold were shipped across the
Atlantic from Allied countries which
were heavy buyers of war materials
and foodstuffs here. In that period
the net increase Of gold in this coun-
try approached 00,000,00O At the
peak Of the influx it ran as high as
Sl0o,000,000 in a single month. Then
the movement stopped after the United
placed $4,000, 100000 fund in the
hands of the Secretary Of the Treasury
TO be lent to the Allies. In 1918 and
1919 no gold was imported from France,
and from England only 1926 came in
1918 and $4,0t6, 900 in 1919 on minor
operations.
The Bank of England has steadily
been increasing its gold holdings, and
its weekly statement yesterday re-
900 and an increase of $110,700 900
since January l, 1919. In pounds
which at par ere worth S4S66. the gold
holdings OF the Bank OF England now
amount TO 9113.592, 1892, compared with
ESQ oe4,T21 in 1918. At present, Eng
land has an embargo on the export Of
gold. cxcent new metal currently pro
duced by the South African mines. The
reported shipments, bankers believe,
would. be made cut OF the holdings of
the Bank of England and the Bank of
France.
When the United States entered the
war the government placed an en-
barge on gold shipments. which was
lifted last June, and since that time
tho United States exported up to the
end of January last $337, ,584 ,722. Most
of this was shipped to South America
and the Orient. This sum, however,
was Offset by the receipt of SIP .S0O,-
900 from Germany in the payment FOR
foodstuffs, and this fund was deposited
abroad to the credit OF the Federal Re-
serve system. Approximately S30,O00,.
500 of gold, it is expected, will be
shipped to Argentina within the next
Ten days, and slightly more than SlG,-
600 600 was withdrawn yesterday from
the Sub-TroasUry to be shipped to-
morrow.
Anglo-French bonds sold as high as
98ls yesterday. They have been
climbing in price for six weeks, and
this movement has been aided by buy
sold below "a less than two months
ago.