NEW material from The Times on GERMAN gold purchases in the summer and autumn of 1929

Sara F Moore
May 2011
NEW MATERIAL FROM
THE TIMES ON GERMAN GOLD PURCHASES
IN THE SUMMER AND AUTUMN OF 1929

TIMES June 11
Extract from New York Times (10) ‘Germany is acquiring substantial amounts (of gold) to hold here, which she is earmarking and leaving with the Federal Reserve Bank of New York for possible transfer to Germany in case the drain of funds occasioned by reparations payments makes itself unduly felt.’

TIMES June 26, (21,c)

Yesterday … in addition to the purchase of £720,000 in the London bullion market, Germany was understood to have been the buyer of £1,874,000 in gold which was taken out of the Bank of England.

June 27, (23,b)

The export of a further £1,540,529 (check last figure 9) of gold to Germany yesterday, making a total withdrawal of £3,414,000 from the bank within two days, naturally had a disturbing effect on both money and stock markets.

June 28, (25)

The present gold outflow from this country reached a fresh daily record yesterday … not all destined for Germany … (there were) extensive sales of dollars on German account.

July 2, (21,d)

MORE GOLD FOR GERMANY

The news of the withdrawal from the Bank of England yesterday of £995,000 bar gold, caused weakness in gilt-edged securities.

July 3, (22b)

The latest return of the Reichsbank (June 29) … shows a large addition in the stock of gold … The not circulation increased by £38,500,000 … ‘gold and bullion’ has increased by £7,353,000 and the reserve held in foreign currencies by £1,490,000.

July 4, (22b)

It is understood that insurance arrangements were being made yesterday for the transport to Germany of a further large amount of gold from London – about £703,000

July 17, (18f)

The bulk of the gold available in the bullion market yesterday was bought on the German account, while £132,000 of bar gold sold by the bank was also understood to have been taken for Germany.

July 24

Of the £768,000 of newly arrived South African gold available in the open market yesterday about £490,000 was bought for shipment to Germany.

July 27

Gold continued to be withdrawn from the Bank of England yesterday … rather more than £300,000 of the £1,629,000 sold by the bank was for Germany and the balance for France.
(from now on France seems also to have become a big buyer of gold)

July 31 (20,d) bottom of page
BULLION AND SPECIE
‘export amounted to £565,100 of which £557,020 went to Germany.

Aug 3, (16,f) bottom of page
BULLION AND SPECIE
£1,345,300 went to Germany.

Aug 10 (16d) bottom of page
BULLION AND SPECIE
£3,276,884 to France and £23,900 to Germany

Aug 21,17d
In the bullion market … Germany was understood to have taken £652,000

Aug 24 (16a) bottom of page
BULLION AND SPECIE
Exports amounted to £3,146,539 of which £1,931,544 went to France and £1,127,900 to Germany

Aug 28 18a
Of the total (exports of gold) Germany took £217,000

Sep 11
£300,000 bought for Germany

Sep 16, (19d)
BULLION AND SPECIE
£181,620 bought for Germany

Sep 25, (18b)
FURTHER LARGE GOLD EXPORT

The announcement of a further large export of bar gold, £1,289,000 being sold by the bank, of which £700,000 was understood to be for France and most of the balance for Germany, naturally strengthened expectations of an early rise in the Bank rate.

Sep 25, (17)

An event of much more general importance than the Hatry affair … was the further heavy loss of gold reported by the Bank of England. Following the withdrawal of £1,568,203 gross and £1,068,203 net on Monday, the sum of £1,289,000 in bar gold was taken from the Bank yesterday. This brings the total loss of gold since Wednesday last up to £2,650,729, and reduces the Bank’s stock to £134,270,271, which is £39,000,000 less than it was a year ago and nearly £21,000,000 less than at the beginning of the present year. Withdrawals on this scale are almost unprecedented, and it is as well to remember that the present gold reserve is nearly £16,000,000 below the level the Cunliffe Committee thought should be maintained after the (1st World) war.

Britain raised its bank rate. One month later the American stock market crashed.

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