Evening star., 1940-03-04
Increase in FOREIGN
Selling Regarded
As Improbable
New York Reserve
And National City
Issue Reports {
BY the Associated Press.

BY the Associated Press.
NEW YORK, March 1.-Two bank
publications today made public fig.
ures which may allay apprehension
recently current in Wall Street to
the effect that renewed selling of
United States securities by England
and France might adversely affect
the domestic money market.
The action of the British treasury
in tCking over its nationals holdings
OF go United States corporations be-
came effective today.
The Federal Reserve Bank of New
York in its annual report, and the
National City Bank of New York, in
its monthly bank letter, give figures
relating to the volume of belligerent
holdings and other liquid assets here,
the rate of liquidation during the
first three months of war and a
prognosis of future demands.
A Federal Reserve estimate gave
the following as to assets:
England (at the outbreak of war;
Readily negotiable United States Sc
curities, s735,00o 600; dollar bank
balances, S595,000 900, and undis-
closed total of earmarked gold.
England's net shipments of gold to
the United States in 1889 totaled
Sl,026 100000. However, total dollar
volume Of earmarked gold at the
Fed for foreign account was S534,-
100000 net, at the year end, and
this included gold owned by coun-
tries not involved in the European
war. England is also reputed to have
billions in United States slow" as
sets, such as real estate.
France cat outbreak of war;
Readily negotiable United States Sc
curities, sl65,000 ,000 dollar bank
balances, S315,00O,OOO.
Reductions Guarded.
AS to the rate of liquidation. Ma
tlonal City estimates from United
States Treasury figures that British
nationals during the first three
months OF war ito the end of No
Vember) reduced holdings Of United
States securities at the average rate
of slightly less than s32 900 900 a
month, dollar balances at the rate of
S25.000,000 month, average.
The Fed reported that during
October and November British net
liquidation here averaged s6,0000oO
week, but that during the period
net foreign selling totaled only 4
per cent of New York Stock EX-
change turnover. Foreign owners
Of United States securities, said
the Fed" sold in the market so7.-
100000 net securities in the month
of October alone. During that same
month go stocks in the Associated
Press averages showed a net de-
cline of 6-l0 of point.
FRENCH sellers, said National City,
evidently were not net sellers Of
United States securities during the
three-month period, but moderate
reduced bank balances. accelerating
somewhat toward the end of No
vember.
Faster Rate Unlikely.
The National City's letter poir ;
out that British and French var
budgets are staggering in their size,
but goes on to say:
Because of the greater self-sufi-
cheney of the British and French
empires now than in 1914, and the
desire of their governments to con-
serve foreign exchange. the opinion
has become widely prevalent that
the war may not exert much, if
any, stimulus, to business in this
country outside of aircraft and cer-
tain other restricted lines"
Elsewhere the letter pointed out
that aircraft orders totaling s1,O0o,-
100000 from the allied belligerents
were expected.
Continuance of allied buying in
this country on the scale that has
prevailed thus far presumably would
not require any speeding up in the
rate of liquidation.
Purchases of the belligerents
cannot possibly be considered as
having reached their peak" the let
ter says, land the United States is
the greatest available source of fin
ished manufactures = for the
belligerents."