The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1933-04-27
PARIS RECEIVES
GOLD SHIPMENTS
Yellow Metal Flows to French
Underground Fortress in
Steady Stream
CIRCULATION LIMITED
Metal Is Stored Underground
Run Regarded AS Impos-
STANDARDIZATION Limited

Paris, April 24-France now is
golden fortress defending the few
yellow-backed currency systems re-
naming in the world.
Gold is coming here by air, land
and sea to what the newspapers call
the worlds gold refuge" adding to
the vast hoard in the Bank of
France.
Here, also, Belgium, Holland and
Switzerland are staging a fight to
remain on the gold standard, while
France confidently directs the bat
tie, protesting to be without a fear
for the franc but realizing the dang
er if other gold countries follow the
United States example.
Seven airplanes arrived at LIE
Bourget field Sunday from Amster-
dam, each with more than ton and
a half of gold, a total of $4,000
OO0 They carried one thousand gold
bars which were trucked to the
Bank of France.
From Belgium and Switzerland
for days trains have been bringing
smaller shipments. BY sea kegs of
gold came recently from the United
States.
The French cabinets decision
Saturday to maintain the gold
standard and a statement by both
the government and the Bank of
France that there was no fear for
the franc, was a signal for the fight
to begin.
The cabinet declared not only for
| a strong resistance, but urged a
speedy calling of the world eco
nomic conference and appealed to
nations to return to the gold stand
ard
France holds more than 1,OOO,-
OOO,O francs of gold, about $780,
0OO, 900, or 20 per cent of the worlds
gold.
The United States has more than
one-third, about $4,250, 900 900, or 38
per cent. France and the United
States together have in their vaults
two-thirds of the worlds gold.
France is not only symbolic
gold stronghold, but it has a real
fortress.
Deep underground in strong
rooms are stored more than 25O,OO0
golden bars, some in kegs, some
in boxes and some loose, each bar
worth about $4,000.
This vast fortune lies in the CEN
ter of the city under vacant lot
adjoining the Bank Of France
where some day a new bank build
ing will be erected!ns-sr
Hundreds Of feet ! down, engi-
neers for years tunneled and exca-
waited, and then built in rock and
cement a great subterranean cav
ern. It is so arranged that it can
be flooded from above and below
and from all sides by mechanisms
controlled within, where there Is
food, water, and artificial air puri-
fiers-to enable the gold guard to
remain for months if necessary ev-
en- if an enemy were overhead
bombing them or invaders were in
control Of the city.
It has been calculated it would
take weeks, and possibly longer, for
the enemy to dam up the waters or
drill through the walls.
Once gold circulated freely in
France, but now there is only pa
per plus a small circulation of
silver.
So great is the gold reserve that
the Bank of France ten days ago
had 96 gold francs value for every
100 francs of paper. Diminishing
circulation only per cent, the
bank could furnish the country with
nohing but gold.
In actuality it has more than
enough for business, for bankers
calculate that one-fourth of
Frances money is tucked away in
peasants "woolen socks"
France, however, intends to hold
it's gold until the currency battle
ends and the world gets back to a
normal and stable exchange. Strong
as the French gold reserve appears,
financiers say nothing is certain be-
cause other countries may ask to
drain 1t.
1UST6 Gail US III AoAA VA Solo Wy
small holders because France is on
bullion basis. The law requires
the Bank of France to sell only
gold bars, Of an average value of
$12,O each.
To halt a drain, parliament would
have to vote a gold embargo as
was done in the United States. This
would be different from Americas
action in going off the gold stand
ard because it would prohibit only
the exports Of gold and there can
be no suspension Of bank not re-
demption, since French bank notes
are redeemable only through the
sale Of bars.
Such action, however, both the
Bank of France and the govern
ment assert, is unnecessary. The
reserve is said to be so great that
Withdrawals must be of unforeseen
volume to affect the solidity Of the
franc.