The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-02-05
|GOLD EXPORTS
SHOW BIG
GAIN
January Shipments From
America Expected to Reach
500, 900, 900 Mark
By RICHARD HATTON

uary shipment of gold from the
United States, based upon world
| financial, economic and trade con:
ditions and the export records OF
December indicate that there VIII
be no reduction In the tremendous
amount Of shipments moving out
Of this country.
It is believed that the January
total will reach in the neighbor-
hood of 0.0O0, 900. All fear that
Europe would abandon the gold
standard passed, according to econ
omic experts, with the high gold
export figure reached In December
The January report, when i is
available, 1t is predicted, win clinch
this optimistic opinion. Financial
experts consider the present return
OF gold to Europe from the United
states as a wholesome sign az It
is felt that continued large exports
Is making rapid strides toward q
return to normal financial condi-
tons.
Loans Turn Tide.
For the first six months Of 1924
imports of gold continued to ex.
coed exports, but, coincident with
the floatation Of large foreign loans
in the United States, the tide turn
ed. Gold is now flowing away from
the United States at "a rapid rate
and the great accumulationa OF the
visible supply OF gold are being dis
tributed.
This points, eventually, to the re-
turn OF the leading nations Of the
world to the gold standard. This
il one Of the present significant
movements in the economic world
and indicates that the equilibrium
OF trade and commerce. dislocated
by inflated currency, il being re-
stored. Germany il now on g
gold basis, and IL moving forward
economically. England is, practical
ly upon q gold basis. Conditions
In France are not regarded as
favorably as are those OF other
European nations at present. but
the situation there IL purely poll
teal
The recent debt situation brought
about a temporary loss Of conf
dence not yet wholly restored.
France il still the one European
power conspicuously out Of line.
even Poland and Lithuania now be-
Ing upon e gold basis. This return
to the gold standard in Europe viii,
however, stabilize international IL
nances to a great degree and the
export OF gold has not yet gone
FAR enough to affect our reserve
hank balances. nor has II yet at.
fected credit rates here.
There IL q possibility that the
money market in this country may
tighten up, say some economic ex.
perts, II the shipment Of gold
abroad continues at a high figure
and in case anything In the nature
Of q boom attaches to the present
industrial expansion here. How.
ever, it IL further pointed out that
business in the United States is
oonServatively sound and that q
gradual Tightening Of the market
would not materially affect tcCndi.
tons, as the total shipment Of gold
under any circumstances would be
insignificant in comparison with
the amount now held in this coun.
try.
Fears UnfOunded
A rather remarkable condition is
noted In regard to the present ship
ments of gold abroad. This is seen
in the fact that, at the same time,
we are forwarding large quantities
OF agricultural produce and enor.
nous cargoes Of manufactured
goods. In other words, the fear
that continued large shipments Of
gold from this country would result
In an unfavorabIe trade balance,
which has been expressed in Ger.
tain circles here, Is unfounded be-
cause the shipment of gold abroad
Is the result OF a credit transaction.
The gold is not being used to pay
Tor too many imports. This cotln.
try will continue to export raw
materials as heretofore while 1t
must, as in the past, compete with
Europe in manufactured articles.
The last month Of 1924, exports
exceeded imports by one.third; for
the last quarter Of 1924, exports
exceeded imports BY over 30 ns =
cent and for the entire year exports
exceeded imports by % per cent.
These figures. takn In connection
with the gold situation, the iarrs
exports OF gold taking place at the
end Of the year, clearly indicats
that sending the gold abroad has
not acted to shift the trade balance
Exports to Australia.
Large amounts Of gold exported
from this country in January have
gone to Australia and to- India. wifi
which countries there is a healthy
| trade balance. In connection witt
these shipments it is stated that d
is better business 70 send the gold
to the Orient than to pay the pre-
MUM upon the Australian ex
change and the rupee exchange in
London.
Lending gold to Europe for the
purpose Of carrying on productive
enterprises is putting the money to
work for this country as interna,
tional loans carry credit and Eu,
rope will repay with the shipment
Of goods. In this manner the great
excess Of gold in this country Will
be reduced in an economically
scientific manner to the end that
financial conditions throughout the
world become stabilized.