Evening star., 1934-01-28
DOLLAR PUSHED UP
BY MANY FACTORS,
GOLD IS SHIPPED
London Expected to Take
Slice From Capital
Issues Market.
BY GEORGE T. HUGHES.
Special Dispatch to The Star.

optCidi blSpdtCu W 1uc olhT.
NEW YORK, January q (N.A.N.A).
What Is believed to be the first ship
ment of gold from Europe as a result OF
abroad is on the way to New York.
Fittingly, or not, it is on board the
S. S. President Roosevelt It consists
of about 100000 francs of gold,
which is about s3,136,0OO at par The
amount corresponds closely to the
French banks recent loss of 10000, 900
francs in its gold holdings
sThis shipment is only small amount
in comparison with rumored totals of
r. F. c. and Treasury purchases, and
probably is not to be taken as an indi-
cation Of an intention to transfer all of
the acquired gold to this country.
With the gold value Of the dollar in
London lowering above SO cents, how
ever, it is interesting to note that the
Treasury can still add to its stocks at
profit" if the initial devaluation of
the dollar is to be at the 60-cent level.
London Marketing Talked.
Another influence has joined the
forces of the tide which Is setting in
favor of the dollar abroad. 1t is be-
ginning to look as If London will take
a slice of the capital issues market away
from New York, what with the secur-
tiles act making for immoderate re-
Straint here. There has been talk that
one of the utilities would go to Lon
don for money. And now it is reported
that the American Metals Co. is con-
sidering an Offering of 5000, 900 bonds
in London before April l to take care
of a like maturity of four-year notes.
Such a move would, of course. create
q nd in, fNr
transfer here, in one way or another.
The effect of such financing-and there
is every likelihood that there will be
more Of it, for American industrial
bonds are attractive to the British on
a comparative yield basis-would be
exactly counter to Treasury operations
in the gold market.
Wall Street is wondering If the
Treasury will frown upon such trans
actions. Should that be the case,
pressure will increase for direct Gov
ernment financing of corporation needs,
ORA much more preferable alterna-
tive-revision of the securities act.
Trade Also Bullish.
December trade figures are also bull
ish on the dollar. The United States
had a favorable balance of $4,000, 900
in December on merchandise move
ments, exports increasing more than
$50 100000, as compared with Decem-
Der, 1882. Imports Of merchandise
were up about S36,000,000, against the
month last year.
Exporters are we'll pleased with the
deprecated dollar, which they call their
best salesman With importers, it is
a different story. Figuring the dollar
at approximately go cents, it is to be
remembered that foreign goods are
costing importers about 6625 per cent
more than would be the case on the
old par of exchange. (The 40 cents re-
quired to bring the dollar to 100 cents
is 662a per cent of 60 cents.) On the
other hand, foreign buyers of American
goods are getting them at 40 per cent
less than on the old basis.
Many observers have overlooked the
fact that these percentages affect the
of the trade totals. In
paper dollars, our imports are mag
nified, while our exports are diminished.
(Copyright, 1894. by North American News
paper Alliance. 1nc)