International Business
...capital movement to the United States, valued at $7,950,100,000 at the end of April 1948, as compared to $9,771,500,000 for the same date in 1947. The foreign banking funds reported in the United States on Apr. 30, 1948, amounted to $4,250,100,000. The sources from which these funds came, represented in millions of dollars, were: 314.9 from the United Kingdom; 94.9 from France; 108.2 from the Netherlands; 471.1 from Switzerland; 184.1 from Italy; and 576.1 from other countries, making the European total $1,749,400,000. Other sources were 429.0 million dollars from Canada, 1,097.3 from Latin America, 783.7 from Asia, and 190.7 from all others. These dollar values included gold and other credit movements to the United States. Since foreign balances and credits of these nations were largely negative, much of the capital movement was in the form of gold.
Gold Movement.
The 1948 records showed an over-all movement of gold to the United States from all parts of the world. This was maintained at a rate of over $100,000,000 per month between January and July. March was the exception, when it reached $99,900,000. Between Jan. 1 and Apr. 30, 1948, the net movement exceeded $725,000,000 in gold when valued at $35 per fine ounce.
The world total gold supply was estimated by the Board of Governors of the United States Federal Reserve System to be about $35,749,000,000 as of January 1948.
Other important events, contingent upon gold, were notable throughout 1948. February saw the French monetary reform and the devaluation of the franc, which was accompanied by the return of the free market for gold. The paradox which arose was evidenced by gold selling for less on the black market than on the exchange or free market. Export and import of gold continued to remain under French government control. Holland, in the same month, started to liquidate its gold stock to provide dollar...
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