The Sisseton weekly standard. (Sisseton, Roberts County, S.D.) 1892-1929, 1921-07-22
GOLD STILL
FLOODS US:
WHY is IT?
FINANCIAL EXPERT sAys
MORE INITIATION Will. MOTT
COME BUT IT MAY HURT OUR
EXPORT
BY FRANCES H. sIssoN
Vfce-President Guarnty Trust Com

BY FRANCES H. sIsSON
Vice-President Guarnty Trust Com
pany of New York
Ito Our Readers - Enormous
quantities of gold have been coming
into the country since last January.
Does it mean more high prices? Will
1t hurt us in any way? The Auto
caster service, which represents the
newspapers, asked Francis H. Sisson,
the noted New York banker and t.
nancial expert, and the following is
his reply-Editor)
Copyright, 1921, by Autocaster
Today the United States has the
largest accumulation of gold coin
and bullion in all its history, and, in
fact, in the history of any other coun-
try. On June we held the enormous
amount OF $3.175, 900, ,0OO-nearly
one-half OF all the gold coin and bull
lion in existence-and since that date
there have been accretions to our
stock of the precious metal almost
daily. Gold has been flowing to this
country in steady stream since the
beginning of the calendar year. A
year ago we held $2,663.73O,00O,
and. therefore, have acquired $511.-
3O6,0O0 since that date. The aggre-
gate importations of gold since Jan
uary have amounted to appruxi-
mately 40O,O0O,O0O. In each month
since August. 1920 imports of the
metal have exceeded exports. This
gold has come from nearly every
country that could possibly send It
to us, although most OF it has come
from Europe. and chiefly from Grea:
Britain and France. About three
quarters of the total is held by the
Federal Reserve Banks.
There is no likelihood, however,
that the present accumulation Of
gold will give rise to any marked
measure Of imitation. It has been
demonstrated anew by recent exper-
fence that neither does the accumu-
lation Of gold always result in an
expansion Of credit and a rise in
prices. nor does its loss through ex-
portation necessarily cause a con-
traction Of credit and a decline in
prices. The last quarter Of 1919 and
the first half Of 1920 was period
of considerable reduction in the coun-
try's stock of gold, accompanied by
a marked increase in prices. Through
out the present period Of increasing
gold supply prices have continued
their downward trend.
But the recent accumulation Of
gold in this country is to some ex-
tent a reflection of the inadequate
provision of credits for financing our
export trade. In the interest of this
trade, every reasonable effort should
be made to obviate the necessity for
foreign countries to dispose of their
gold holdings in such large quanti-
ties.
While this inflow Of gold has help
ed to improve the reserve position
of the Federal Reserve Banks, 1t
represents on the whole withdraw
al Of the metal from countries which
need to strengthen their currencies.
The effect upon exchange rates is
not precisely measurable, but 1t is
certain that the movement can not
continue at the present rate without
adversely affecting exchanges. So
far as this country is concerned,
there is probably more cause for ap-
prehension on this score, in view OF
the possible further impediments 70
our export trade, than for fear Of an
imitation of our currency and prices
in consequence Of the accommodating