Word: golds
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Dates: during 1950-1959
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Part of the slippage was due to the fact that U.S. gold, priced by law at $35 per ounce, plus a handling charge of one-fourth of i%, is slightly under the price on the British free market. The difference would encourage foreigners with dollars or other hard currency that they wanted to turn into gold to buy in the U.S. rather than in Britain. The British government itself was also buying U.S. gold again for its reserves. During the early part of this year, Britain stopped buying to accumulate $200 million borrowed from the International Monetary Fund...
...Closing Gap. But the big reason for the gold outflow is that Europe's economy has recovered to the point where European countries have enough dollars to convert some of them into gold for their reserves. They are able to do this largely because of their high sales to the U.S. In March, U.S. imports reached an alltime high of $1,300,900,000, or 21% above a year earlier. Exports of $1,441,000 were 6% below last year at the same time. The once huge gap between exports and imports has narrowed so fast that...
Even with the loss, the U.S. still has half the world's monetary gold. But there is a question how long the U.S. can afford to lose gold without feeling it. By law the Treasury must have gold reserves equal to 25% of the Federal Reserve's notes and deposits, or about $12 billion. It also must be able to redeem some $16.6 billion in foreign time deposits in U.S. banks, foreign-held U.S. Government securities and similar claims. In the unlikely event all foreign claimants demanded to be paid off in gold at once, the gold backing...
...Warning on Costs. Last week there was no indication that any official action was being considered to stem the gold outflow. Treasury officials professed to be pleased at the growing signs that the U.S. policy of helping Europe to boost exports was running according to plan. Said Per Jacobsson, director of the International Monetary Fund: "I do not think the U.S. gold outflow represents any real threat to the dollar. With the U.S. possessing more than half of the world's gold it would be absurd to say that...
...wagging an avuncular finger, Jacobsson said that with the fall of exports and loss of gold, the businessmen of the U.S. might well take stock of their competitive position, read a "warning about the trend of costs and prices...