From the time that the United States Government priced gold at $35 an ounce on January 31, 1934, its net purchases to the end of 1939 were $10,04,000,000, or about 305,823,000 ounces. In that period the world's total output of gold was about 206,- 000,000 ounces. Of the previously mined gold purchased, about $3,000,- 000,000 came from the already. depleted reserves of central banks in other countries and about $500,000,000 from othef*sources, As a result, on December 31 last the monetary gold stock of the United States reached the unprecedented level of $17,643,- 000,000, or about 60 per cent. of the world. At the beginning of 1934 the United States held only about 30 per cent. of the: $12,500,000,000 world's monetary gold, at $20.67 an ounce.
The United States has no need for all this gold. Present holding could be reduced, $10,000,000,000 and still the country's monetary stock would be sufficient to give 100 per cent. coverage to its currency in circulation, the peak of which was $7,679,- 000000 on December 20 last. Under existing conditions, however, it would be impossible advantageously to dispose of such amount of gold. At the same time, the United States Government cannot stop buying the metal at $35 an ounce without precipitating a serious disturbance to the nation's economy.
Text read from the printed page and cleaned; old type leaves the occasional error.