The Waterbury Democrat., 1940-08-12
END FORECAST
 SOON TO GOLD
 BUY|NGBYU.S.
Former Treasury Adviser Believes P Billion Will
 Be Limit

Stanford University, Cal, Aug. 12 s-(UP)-The United States soon will be unable to purchase and store the worlds gold for the reason there Will be no more gold to purchase, &C., cording to pr. Franklin Ebersolo. former economic advisor to the Treasury and professor of finance at Yale.
 pr. Ebersole told the Fourth Annual Stanford Business Confer ence here that there is only $27 900 900 of monetary gold in the world, and that more than $20 900, 900 of this is held by the United States government.
 He understand, he said, that 1t is the policy of the administration to purchase another $2,000, ,000, 900 leaving only $5,000, 100000 in the rest of the world.
 Ebersole expressed his doubt the United States would be able to pur- chase more than this additional two billion for the reason that certain countries like England and France, who believe in a solid currency, will refuse to let the last of their gold be drained from them.
 Buying Exceeds Production
 .sThe United States has been purchasing gold faster than it can be dug from the mines," Ebersole said. "The gold mines of the world are expected to produce only $l,- 900 900 900 in gold this year.
 "California leads the nation in gold production, having mined D. 593 .425 fine ounces in 1889, valued at sls5, ,76sooo."
 Were the United States to con tinue its policy of purchasing and hoarding gold, there would not be enough left outside the vaults to support Americas foreign trade. Ebersole explained that naturally all of the gold held by the Treasury does not belong to the United States. Much of it is the property of the Federal Reserve bank, of carious foreign governments and individuals As a consequence, only small part of 1t is available. The United States is merely the custodian of gold other than its own.
 With the United States and Great Britain producing large quantities of gold, Ebersole does not think they will go of the gold standard, but feels that the great problem to be solved is to prevent this hoardine of aold from running Americas foreign trade.
 "UnleSs some substitute for golc is found as a medium of exchange, Ebersole declared, "the United States may have difficulty in com peting with an influx of cheap for eign goods unloaded here at los in 0rder that American dollar thereby gained may be exchanges at a profit as they become scarcer il Europe.
 Hoard Likened to Chips
 'The United States and its gol' supply are like poker player witt all the chips in the game and n place to cash in."
 Ebersole suggested as a partia solution that the United States be gin buying such strategic material as tin, rubber, manganese, chrom iuyn, and a half dozen others.
 Such program" he saic might be wiser than purchasin gold. We could, in any event, us the strategic materials, and in tn end it might be that we couldn' use the gold. Anyway, we are no doing very much with it the wa it is"
 He believes the gold would prov to be readily acceptable by poor na tions which have strategic material for sale.
 Tn any event, the fork of tn road is in sight" he declared. "an the United States has to take on course or the other"