FOREIGN TRADE: Hoard of Gold

The Federal Reserve Board took a searching look last week at prospects for postwar trade, found them bright. The chief reason: foreign nations (governments and central banks) have piled up an immense hoard of $17 billion in gold and U.S. dollar credits, a lush increase of $7 billion in the last three years. More important, much of this is held by onetime gold-poor nations, notably in Latin America. Typical example: Brazil, which owned a mere $50 million in gold in December 1940, now has $295,000,000 put away.

This foreign hoard has piled up for several reasons: while the U.S....

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