The Washington herald., 1922-12-27
Gold Exports Are Rapidly Ap-
preaching Rate of Imports,
He Tells Cabinet Members
SHOWS "W0RLD REVIVAL"
Indicates Increasing Demand
for u. S. Products from For
eign Markets, He Declares
BY Universal Service.

Gold exports have supplanted
the import stage of postwar ad-
justment and the United States IS
rapidly approaching an even bal
ance in world trade, it was an
nounced at the White House yes
terday.
SHOWS WORLD RECOVERY.
Instead of the steady stream of
gold pouring into this country from
all parts of the world in payment
for commodities, this county is now
sending large quantities of the sur
plus gold to the old world in pay
ment for imports, Secretary of Com
merce Herbert Hoover reported to
the President and his Cabinet.
Figures Just compiled, it was
stated, make 1t manifest that the
world is recovering more rapidly
than the Government had reason
to expect and reveal the huge bal
6nce of trade in favor of the United
States reduced almost to pre-war
figures.
With this situation, it was stated,
the world will again come into the
American market as large buyers
OF farm products and the time when
there will be a healthy resumption
OF world trade is not far distant.
EXCESS OF GOLD.
"Our gold stocks amount to about
s3.OI1 200. .OOO,' said Secretary
Hoover. THE minimum legal
necessities at the moment for the
assurances 10 our currency and
credits amount to about 81 900 .OOO.-
900. but for a 60 per cent reserve
OF security we would require about
$1,000 .OOO. 900
The surplus therefore amounts
70 somewhat more than s7OO.OOO,-
OOO- While this is an asset it
would nevertheless be more ad-
vantageOus to us if it were in
active use abroad. The automatic
tehdeneleS In our international
trade and financial relations, are.
however, setting strongly toward
rectlfication of the whole situation
without artificial action.
EAChANGE REDUCES VALUES.
Continued trend in the general
direction now evident would soon
produce gold exports, even in the
Iace OF payments on accounts of
allied debts" = =
Due to the Debated currents of
Europe. the value Of commodities
purchased from tn" United States
Tor export has gradually dropped,
while the imports are rapidly in.
creaslnE, II was stated
Warehouses at the PRINCIPAL nor. :
sre cunGcsted with commodities
from other countries and TODAY
hundreds of ships are headed for
New York, Boston. PhiladpIphi;I and
Norfolk with goods bought for
American consumption, Mr.. Hoover
reported.
INVISIBLE EXCHANGE.
The gold being sent to Europe in
payment for these goods. together
with the operation "f what is
termed invisible exchange. IS bring
ing about the bullion export noted.
The invisible exchange is es:i-
mated by the Department of Com
merce as about 81 800 900. 900 an.
nually. which is partly an offset to
the estimated exports of S3Is3.-
the estimated exports of $3,77I 1885,
42s. With imports valued at but
S1.163. .207 .420 less than the value of
the American exports. it is pointed
out that invisible exchange creates a
balance in favor Of foreign coun-
tries
In invisible exchange is included
American money invested in for
elgn public securities. tourist traf-
fic. remittances of immigrants.
1reiShts. private loans, reciprocal
payments. investments. and losses
by speculation in foreign curren-
cies.