Evening star., 1925-10-07
GOLD SHIPMENTS
HELP TO STERLING
Exchange Strengthens on
News of Movement of Metal
to New York Banks.
BY the Associated Press.

NEW YORK. October THE first
from London TO New York since Great
Britains return 10 the gold sta nda rd
last Spring is now under way. En-
ga gasements for approximate tely $4,000
Goa of British gold was announced
yesterday by three New York banks,
which found it profitable to buy the
metal through their London CORE
spondents in foreign exchange ira MS
actions. Most of the gold. il Is eN-
pected. will be shipped on the Home
ric. which sails from Southa ampton to-
day.
Additional shipments will depend on
fluctuations of sterling exchange.
which recently has been quoted below
the gold export point. Following an
nouncement that between $1,000, 900
and $s,00o.000 had been withdra wn
from the Bank Of England for ex-
port to the United States and the con-
tinenl. sterling quickly strengthened
and local bankers expressed doubts
that pro6ta BILE margin could be long
maintained
Although few small shipments
from EnGla nd. aggresating about
100000. seeped into the United
States last MAY. the consignments
now announced are the largest since
July, 1924. when New York received
S13 .00o, 900 in gold from London. Most
Of the precious metal brought from
England since the war has been in
the form of ira shipments of gold
direct from the South African mines.
Approximate tely S2.O00.0o0 of the
gold now on it's way will go To the
Farmers Loan and Trust Co. and about
81 900 900 each to the Seaboard Ma
tional Bank and the Irving Bank
Columbia Trust Co.
Bankers expressed the opinion tina /
New York would he able 10 absorb
on it's credit position. bu, held the
effect i'm Great Britain. where the
market is more sensitive to such
movements. would he slight stiffen-
ing of money rates.
Destination Kept Secret.
LONDON. October : R).-The
withdrawal of 1,566.0O0 pounds ster-
ling bar gold. from the Bank of Eng
lands vaults was the largest of this
fna ncial week and brings the total
withdrawal to G2,421 900 since Octo-
ber !. When the last ba nix statement
was issued only & G8o5.000 was sold,
the destination OF which. as usual.
was not divulked in the banks Off
cial bulletin except small specific
shipment Of 1900 sovereisns to Java.
The market understands. however,
that most Of yesterdays big with
drawal was on the New York account.
The discount market has been firm
for some days because Of these with
dra walls.
Reason for Delays.
When at the end Of last week ster-
ling exchange on New York at one
time dipped to 4s3s4. or about half
a cent below the gold point. the ques-
ton Immediately was asked why gold
was not shipped. as offering hand
some profit on the transac ction.
The Manchester Guardians finan-
cial editor says II was because offers
Of exchange were then reported to
have been made AT a figure rendering
the actual remittance Of gold un-
necessary.
The Bank of England. however.
parted with bar gold on October l 10
the extent Of 100000: October 2.
e149, 900: October 5. f26S 900, and 49,
O6O sovereisns TO Java. which with
Yesterdays G1.56S 900 tells its own
tale.
The closing rate yesterday was
4.84i,, after an earlier 4.84.