The Cordova daily times., 1921-10-25
AMERICAS GOLD STOCKS

The best interests of the United States de- mand that the inflow of gold from Europe which has occurred since the beginning of jh" Great War shall be reversed at as early a date as possible in the opinion of Dr. H. A. F., Chandler. economist of the National Bank of Commerce in New York. Amcrica'S propor tion of the worlds monetary stocks Is now sufficiently abnormal to cause apprehension he declares, and her gold policy should be con structed with view to facilitating move" mcnt in the opposite direction.
 "A review of the available data in regard to the future needs of Europe clearly leaves the impression that her approach to normal conditions may require monetary supplies con siderably in excess of her present combined holdings" Dr.. Chandler says. "For this cX- cess she must call upon the outside world and especially upon those few countries that now hold a dsprOportiOnate share. Among the holdings of these countries those of the Unit ed States overshadow all others"
 Tn the light of these facts "renewed inter est attaches to the duration of the present in fIux of the gold and to the time when the re turn flow to Europe will set in. These qucs lions are of particular significance because of the possible effect that the gold movement may, in the meantime. have upon conditions
 
 Concerning the duration of the present in fIux, "rccent personal conference with an i'm portant number of European authorities dis closed their almost unanimous agreement that for some considerable period the United States must continue to receive practically all of the worlds gold production with tn" exception of that which goes into the arts and that may h." absorbed by India.
 '"The question as to when the return flow will set in is partly concealed in the intricn clcS and uncertainties of the relative trade bal ancc relationships of the several nations. It depends in part upon the world trade revival and the ability of European nations to cstab fish favorable trade balance. It is interesting to note, however, that European cconmists and financiers do not attempt to conceal their pleasure at seeing the gold flow to the United States. They reason that no people could re slst the temptation of imitation in the face of such a flow; that such an imitation will rcn der American goods relatively high in cost and therefore further reduce our merchandise exports; that on the other hand Europe's goods will become relatively lower in price and therefore increased exportation from Furope will result.
 Indeed Americans who have given care ful thought to the present gold influx with reference to imitation and the possible dis turbing effects upon industry are apprchcns- i've as to the results. If it is true, as careful Investigation appears to indicate that there is tendency for an increasing percentage of the total commercial bank loans in the Unit cd States to take the form of fixed capital investments any considerable extension of credit upon the basis of the new gold would present problem of very great importance ttrrhe ouestiOn of FurOne,s need for mart of our present supplies of gold does not neces- sarily wait upon her ultimate recovery or the complete adoption of the gold standard As fast as one country after another approaches the condition when stabiization of currencies can be considered an increased need for gold may occur.
 "While it is true that the return flow of the gold is not imminent and that a consid-