Evening star., 1933-02-23
GOLD IMPORTS AID
NATIONS BUSINESS
Reserve Board Comments
Upon Movement of Funds
From New York.
BY the Associated Press.

BY the Associated Press.
Although New York City is the coun-
try's greatest financial center, funds
arising from the imports of gold and
the open-market operations of the Fed
eral Reserve Board were said by the
board to be distributed over the entire
country.
The board in its monthly review Of
business and financial conditions said
that In 1881, $400,000000 of funds
moved from New York to the interior
In the account of the United States
Treasury, and that in 1892 such trans
fers amounted to $3.50, 200, 900.
The first move in handling Govern
ment securities, the board said was
wisely concentrated at New York banks.
as the city is large consuming market
and buys from all over the country.
The review said subscriptions for securi-
ties hoated for the purpose of raising
new capital are usually heavy in the
New York market, and the funds col
lected from investors there are dispersed
throughout the country in construction
activity, in payment for materials, in
shipping and through other channels.
Treasury Operations.
Loans made by New York banks to
national corporations with headquarters
in New York are also likely to be re-
fected, directly or indirectly, in a move
ment of funds out of New York" the
board said
Treasury operations generally tend
In the same direction, and during the
past year when the other factors have
been smaller than usual, Treasury op-
erationS, including those in connection
with the activities of the Reeonstruc-
ton Finance Corporation, have been
the principal factors in distributing
throughout the country funds raised in
New York by the Treasury
That large part of the funds ac-
quired in New York by the Treasury
became available to banks outside New
York is indicated by the net disburse-
ment by the Treasury outside the New
York Federal Reserve district
This shows that in 1881 the net
movement of funds to the interior on
treasury account amounted altogether
to about S400 900 900 and that in the
second quarter of 1881 this movement
was especially large, rejecting large dis
bursements in the interior arising out
of loans on the bonus certificates and
also out of certain Farm Board opera
tions.
In 1882 these net transfers amounted
to about S950,000,000 rejecting in addi-
ton to ordinary expenditures OF the
Government the effects of emergency
activities and particularly disbursements
o. the Reconstruction Finance Corpora
ton representing loans to interior banks
and other institutions"
The board reported 237 banks with
deposits of Sl42, $4,000 had suspended
curing January, while 13 banks with
deposits of $9,368, 900 had reopened.
Gold Total of World.
The board listed the total gold of the
world at $11, $3.50, ,000, coo, with the United
States holding $4,064, ,Ooo,0 900 at the end
OF January. At the end of last year
France held S3,254,000, 600 in gold, but
lost S33, 100000 in January. 1he close
of the year also found Belgium with
1851 100000, and England with $685.
100000, but the latter gained S19,O00,-
600 in January. Germany gained S4,-
100000 last month to a total of $780,
000,000, while Italy held S30T, 900 900
at the end of December. The board said
the Bank of France in addition to los
ing the gold, also lost 81 100000 in for
eign exchange.
| The board reviewed the decrease In
| circulation of money in this country in
January, which amounted to S109, ,000,-
900, but since that time circulation has
Increased about S200.o00,000. -