Business: Losing Gold

London's press last week headlined,

AMERICAN GOLD SHOCK and DOLLAR CRISIS.

There was even renewed talk on both sides of the Atlantic of a flight from the dollar. Behind these wild exaggerations was some sober fact. In the past three weeks U.S. Treasury gold stocks have declined $176 million, a greater gold outgo than occurred in the entire first quarter. Coming after a drop of $2.3 billion in 1958—the sharpest one-year decline in history—the renewed flow of U.S. gold to foreign nations brought Treasury gold holdings to $20,255,000,000, the lowest level in 13 years.

Part of the slippage was due to the fact that...

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