Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-22
OF GOLD
IMPORTS IS SMALL
Advance in Sterling Exchange
PrecIudeS Shipments
From London.
BY CHARLES F. SPEARE.

Special Dispatch to The Star.
NEW YORK. January 22.-The fur
ther advance yesterday in sterling ex-
change, along with strength in most of
the European exchange rates, put fur
ther into the future the prospect of
imports OF gold into this country from
London.
The definite policy of the Federal
Reserve Banks, as well as of interna-
tional bankers who normally are most
closely identified with gold movements,
is to prevent gold coming here, even
though the exchange rate on London
may be at the importing level New
York, like Paris, wants no more gold: but
the American market, like the French
market in 1880, may have to take it
under the arbitrary laws that govern
exchange operations.
London Bankers Criticism.
The criticism by the general manager
of one of the largest London joint stock
banks of the policy in banking in this
country which has resulted in a hoard
ing of gold was received with much in
terest in banking circles. The United
States. like France, is being blamed for
not releasing long-term credits to coun-
tries that are in need of them and
whose trade and political situations are
disturbed from lack of them. The fac
tor in the general world depression of
the so-called "maldistribution of gold"
plays a larger part in the minds Of
British than of American bankers. II
is this situation that the Bank for In
ternational Settlements is now being
called upon to consider and, If possible
to devise means for correcting the most
serious phases OF 1t.
Comment in the French press was
strongly against action which would
cause France to lcse any considerable
amount of her gold although this has
reached figure unparalleled in history
and is regarded as one of the serious
handicaps to improvement in general
world credit conditions. France this
week is again taking a considerable
amount Of gold from England so that
the weekly statement of the Bank oil
England tomorrow is expected to show
another loss in bullion.
Movements of Gold.
The completed figures of the move
ments of gold to and from the United
States in 1880 indicate an excess OF
imports over exports of $280,000, 600.
The inward movement was 1896, 600 900.
1t represented chiefly receipts from
Japan, which amounted to about 40 per
cent of total imports, and those from
South and Central American countries.
Brazil next to Japan. sent the most
gold to the United States in connection
with her dollar loans. Argentina made
quite heavy shipments toward the end
Of 1880 and is expected to send more
gold in connection with ner exchange
situation. There were also moderate
amounts from Peru, Uruguay and Co
lombia Imports from Canada were APP
proximately $43, 000, 900. against exports
of around $38 100000. Mexico ond
China sent respectively $40, 400 900 and
So, 1913, 900 in yellow metal to this coun-
try during the year.
Movement From Japan.
That the movement from Japan has
not been completed is indicated in the
shipment of $3.50 900, which is to ar
rive in San Francisco tomorrow This
is believed to represent resumption of
the exports to this country that started
last year after a cessation of such
shipments since the World war.
The monetary gold stock in the
United States at the end of last De-
cember was $4,593, 900 900. This COM
pared with S4,284, 000, 900 in December,
1929, and represents an increase OF
$440, 000, 900 since February of last year.
Copyright, 1919