Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-15
IMPORTS OF GOLD
EXPECTED TO GAIN
Easier Credit May Follow
Continued Takings From
Abroad.
BY CHARLES r. sPEARE.

Special Dispatch to The Star.
NEW YORK, June 1S.-Imports Of
gold from Canada on q considerable
scale are expected following the receipt
yesterday of $2,O0o,00o A continuation
OF the imports from the Argentine is
also probable. It is doubtful, however,
whether there will be much gold per-
mitted to be released by the Bank of
England on American account in spite
of the level to which sterling exchange
has declined and the present high ratio
of gold holdings shown by this insti-
tuition.
Canada has been a heavy lender of
funds in the New York market during
the period OF extreme rates for call
money. Her willingness now to let gold
come this way after having. raised ..
barrier against shipments OF the yellow
metal across the border, comedies with
the longest period OF relatively easy call
rates this year. 1t is Of interest to
note that In the last three weeks there
has been steady shrinkage in the
account of brokers loans for "others i"
| aggregating $131 10000
Imports Figures.
In the first five months of 1929 total
gold imports into the United States
were $15oo00,000. Excess of gold i'm
ports over gold exports for this period
was $14S, 100000. With the gold that
has been received so far in June the
addition to the American stock since
January ! amounts to approximately
$3.50 100000, and since August 1925
to nearly 100000, 900. This, Compares
with loss of about 1925 900 600 In gold
by this country to Europe and to south
America in the quarter ending July 81
last year.
The statement Of the Federal reserve
banks at the close of business June -
indicates that their gold reserves On
that day were $2,s7S,63o, 600 This fie-
ure was nearly $500, o00, 900 greater
than that of June 10, 1928, and is an
important factor In the comparatively
high ratios of reserves of the ~ Fed
eral reserve banks in contrast to the
low reserve ratios year ago, when the
policy OF steadily increasing rediscount
rates was being carried out.
AT another point this weeks Federal
reserve statement shows a decidedly
stronger situation than q wear ARC.
namely, in the item of bills discounted
These are now approximately s934O(,O. =
600, having decreased in the past week
$43 100000. They are S109, 000, 900. or
10 per cent smaller than year ago for
the system as whole. In New York
eNAoAAC t1Ac CuHtI dCGlOQ WlC0lD the il
months amounts to $172,0Oo, 900. or
nearly IS per cent, in spite OF this
weeks gain Of S16,000,000 This fact,
together with the reduction of s258.-
10000, or about as per cent in the
brokers' loans of the New York tnsti-
tuition. makes it dificult for borrowers
on speculative collaterals to understand
why money rates here should have
been and still are so high.
United States Bonds.
Further advances in Government
bonds and Treasury certificates sug-
geSted that the Federal reserve may be
inclined to use the market for Govern
ment securities rather than that for
bankers acceptapces as a medium for
lifting the strain on the money market
over the period of unusual demand that
Is just ahead of it. Recently the port
folio of the Federal reserve showed not
only the smallest holding of Govern
ment securities, but of acceptances, In
many months. The accepted theory in
banking circles now is that both will be
built up substantially in the next few
weeks.