Show GOLD STOCK TOPS RECORD United States Now Has Four Billion In Yellow Dv By B BYRON SELLERS Oo ent of The Tb CopyrIght 1923 NEW YORK TORE Juno June 16 IS In In the of much that hM has been been con con- confusing con con I fusing the outstanding phenomenon Is the continued Inflow of ot gold fold The Juno June circulation statement of the treasury department shows bows that on ontI tI first of ot the th month the total gold stock tock In the United States ex- ex ex exclusive of ot foreIgn n coins and gold bullion outside of ot the treasury and the tho federal reserve banks was nas as U- U 4 0 0 1 3 a new nw high record Thin is an Increase of ion lor May lay and of ot s nc J January an uary 1 It Is the first In e lm lin an n country has ever ver held as much as In gold eold The sio ie In our gold cold stock In May w S the bo largest Increase as In one In more than a year and a I I ha GOLD 11 1 INFLOW LOW The weekly statement of ot the ted ted- fed led end reserve S stem hows an In- In In-cr In of ot In gold eold hold hold- holdIng bold ii Ing e over II a week ago aro Since May 31 the gold cold in the reserve e banks has 1 would undoubtedly have been been con considerably larger larrer had it got ot been tor to the continued paying out Into circulation by the banks ot of gold old trUncates certificates as a 0 meant means m ans ot of keeping down In the tho Increase In inthir th thir lr own gold told rosettes reserve This ls continued Inflow of ot gold fold conies comes In the face of ot official pro pre of ot gold cold exports as IlS a result ot of the trade trad balance agaInst the United d States tor for the tho first th he e months ot of the year amounting to The explanation ot of is that other Items notably the payment ment ot of Interest on Its debt to 0 America by Great Britain have mr more than balanced the net Import Iho result Is ts that the economists economic ar art are 1 i till factor facIng a problem of ot what J o do and how to get rId ot of thIs unnecessary sary and as they siew lew It it even dangerous excess of ot yellow lit 11 D TO CREDIT However that problem may be j solved It it Is solved at all tM the important thing to Investor spec spec- speculator and business man alike Is ii what hat will be b the th Ion long range ranee effect of this situation The orthodox opinion is that this huge hue gold sold sur sun surplus surplus plus is a standing Invitation to cred cred- credIt cred- cred credit it ii expansion So far that danger dancer it If It be a has been averted Some au s claim to believe beUne that It has been permanently averted with the les lesson on of 1921 well learned and with the official nd official centi-official warnings agaInst going ahead too last fast ringing In their ears cars they say ay will not tempt dl- dl dis aztec again ala But It this happens sate safe restrain Is achieved d ed d It will be the th first time in his his- toy his y to-I and contrary to all human buman n ture ture- ture l MONEY MONET RATES HATES The Tb gold cold surplus Is Important from another namely th future futuro of money rates Th The tone market has been easy all aJl week and the th drift seems seem to be to- to toward to toward ward ard lower levels This of ot course inns be only temporary but unless there Is an enormous increase In inU U denand for tor credit the necessary sary sari effect of ot these gold cold holdings must be b to Steep keep interest rates own down In addition to these p purely rely tl dal factors there ther Is also just now new a smaller demand upon bank bank- bank loff log IDI resources for commercial pur- pur purposes pur purposes ur- ur poses Meanwhile both Investment and speculative Interest in Iii securities securities ties lags lacs HIgh grade crade investment I are firm tinn but very tory dull It ItI I ISS evidence that nowadays accept accept- accepted accepted e ed 1 opinion prevails as to the th tu- tu future fu future ture ot of the tho market It will be in- in In to observe th tho thi course count or QuotAtions for tor United States State gov- gov government government COT loans loan now that buying for tor ac of ot the British treasury Is no longer lonser a supporting influence The market tor for liberties has ha to rr kon with the approaching ex- ex ex of ot tax exemption on any lal 5 holdings rho rhe dullness In the th Investment list 1st I 1 paralleled by hesitancy in Bonds Donds the status ot 01 which might be expected to ins ins- Improve Im Improve prove with the th business s or corpor corpor- corporatIon corporation atmon are about as much neglected as those dependent tor for their rat rat- rating rat rat-loff ID ing ony on fluctuation in Ia money lale 3 aI es ei EFFECT ON OX STOCKS ShOCKS Thu Tills Is particularly true truo of ot the thc grade crade and speculative rail rail- rall lood bonds Here liere of course the teat ot of o more mor governmental Inter Inter- Interference ference erenee may enter in or doubt asI as I to the business outlook ot of the fall mal on Da a factor Neither of ot these is b adequate but the tact fact n mains that maturity yields o of I to 8 per pel cent on railroad bonds reasonably bly well secured are obtain obtain- obtainable Ablo able blo at present market marke quota quotations ons An interesting development ot of the week along alone this line was as the g ot of the tha New York Tork Central i to a seven per cent basis in the minds ot dl- dl di tt t was more Imp important to tomake tomake tomake make stock attractive to than it was to avoid rou the of ot the ele- ele elemont ele mont bent up upon upun un the tho reduction of allro d rates And i et with the th New York Con Con- Contral Cen Central flock as with the s Ith lathe e railroad bonds already re- re re fe reci to the market response was disappointInglY small It zany may be bc that ether railroads In la a position to tod todo todo d do so will toll follow ow the example ot of the New York Cen Central l but it bo be er ery unsafe to count on this roll a speculative point of In present mood speculators e arc it e t-a t 1 timid as bu business men are arc cautious What Jt seems to be needed Is cour cour- cour- cour courageous ageous a leadership When that is In evidence c as was tile the tn case caso wIth the Austrian loan both Investors and speculators peculators are ready re-idy to re- re re respond I spend spond business need more of ot this kind ot of leadership rather than so much counsel o Os caution as IlS has been emanating forthe for tor the vast SIX months from our ot- ot filial and unofficial fInancial |