Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-25
FRANCE INCREASES
ITS GOLD SUPPLY
Holdings Are Now Second
Only to Those of United
States.
BY JOHN F. SINCLAIR.

BY JOHN F. SINCLAIR.
Special Dispatch to The Star.
: NEW YORK, october 25.-Franct
+. continues to be a magnet for gold. Shit
seems anxious to build up greater pile
Of gold than any other ~pation in the
(. world. Since the end of the war she
has acquired more Of the precious meta
than England, Russia and Germany
and her holdings are beginning to COM
pare in size with those of the United
States.
; Last week she ADDED another $43,-
increase in all the history of the Bank
) Of France. Since July she has added
: 1854 1000, 900 to her gold reserves.
Since the sterilization of her franc
two years ago French gold holdings
have increased $685.. 0O0,0 900 and stand
> at the enormous figure of 81, 1872 900,
: O00-really more than the Federal re-
and now only $1,044, 100000 under the
present holdings of the United States.
France and the United States to-
: gether hold nearly half of the none
( tary gold of the world. If the gold
standard is to be maintained the
: financing of Europe's reconstruction
= win have to center very largely in these
: TWO countries.
But when the latest German loan Of
: 9125. 100000 was made not dollar was
subscribed by France. 1t is q heavy re-
sponsibility-- two gold piles Of the
: two richest republics on earth.
: A gold pile is not like an oil painting
or beautiful chair-sometbing to look
at. 1t is the life blood of nations. But
some governments have put gold in the
: same class as the oil painting and the
beautiful chair-something to look at.
Fuel Output.
Will the output Of fuel in the United
States be SUFFICIENT to maintain the do
nestle consumption? In 1928, total
increase in domestic consumption in
crude oil reached $4,000, 900 barrels over
the two preceding years, while 1923
probably will show a similar increase.
The National Industrial Conference
Board has pointed out that prompt &C
ton In adopting a conservation program
is necessary if the future fuel oil sup
ply is not to be endangered. OF the
400, 100000 barrels produced in 1928,
100000 represented domestic con-
sumption and 100000 was the net
export.
"a decline of SO per cent in the fuel
oil supply in the United States, based
on the situation in 1928, would really
mean a decrease to zoe, DOC. 900 barrels.
The decrease in domestic consumption,
to be replaced by other sources of en-
ergy, would thus be about 160, 900 900
barrels, roughly equivalent to 45,000,-
900 short tons of coal, according to the
Conference Board.
Now the oversupply of crude oil in
1929 led to an increased supply Of avail
able fuel oil, so the estimated average
wholesale selling price of 80 cents q
barrel in the United States was the
lowest average price since 1916.
Fuel oil prices still continue very
cheap. but it's no indication that the
. future oil supply Is unlimited and the
oil should not be criminally wasted.
THE present trend of the oil conser-
walton movement proposes to accom-
plish this result through cooperation"
says the National Industrial Conference
Board.
Surveys on Situation.
Lord Cowdray Of England. world oil
. leader, has been in the United States
making q frst-hand survey of the oil
situation. The English oil magnate is
an associate of Sir Henri Deterding in
the development Of the Anglo-Persian
Oil Co., the Royal Dutch and the Dutch
Shell, together with hundreds of other
oil and gas corporations operating in
every part OF the world.
Tucked away in their safety deposit
boxes, these men and their associates
have the control Of the Burlington In
vestment Co., Ltd, of London. This
company Is the key company, which
owns in turn the controlling interest of
nearly all the vast oil properties domi-
mated by British interests. The British
royal family, have learned upon good
authority owns from fifth to quarter
of the stock Of this very closely held
corporation.
The company's holdings have never
been made public, nor has list Of its
distinguished stockholders.
Business Disturbances.
DR.. Jacob G. Schurman, former preSi-
dent of Cornell University, recsntly
United States Ambassador to Germany,
confeSses his inability to understand
+. what lies at the bottom of the present
business depression. But who does?
I. THE wisest economist knows these
{ disturbances, causing Industrial and
/, economic depression, reoccur every 10
years or So" says DR.. Schurman. They
: lie deep in the foundations and func-
tionings of our modern system of pro-
+. cuction and distribution Of material
commodities
(. But the capitalistic system is man
made. Business prosperity is man
( made. So Is business depression. Some
call the trouble "overproduction," some
"underconsumption" and some credit
restriction"
Now, the capitalistic system is not
old In the world. 1t is comparatively
new. Any system that is man-made is
subject to correction.
And its solution is of vastly greater
import than any other.
The Brookmire Economic Service, in
It's last business summary, concludes
that while we are without DOUBT at a
low level Of activity, such as has not
often continued for very long in the
past, 1t Is apparent that We have not
yet found the bottom, and the proba-
bilities are that the depression will be
somewhat further prolonged rather
than that there will be an immediate
recovery from existing levels"
Business improvement will become
apparent by next Spring, according to
this service, and the year 1881 as a
whole will be one Of improvement.
leading TO a return of approximately
normal business by the end of the
year"
There is growing list Of business
leaders who believe that the present
major decline will show a real upturn,
not in the next few months, but in the
closing months Of 1881.
(Oopyright, 1880. by North American News
paper Alliance
EARNINGS REPORTED.