BRITAIN'S GOLD HOLDING
The statement of the Exchange Equalisation Account's position as at September 30th shows the extent to which gold had been lost in defence of the pound sterling up to the peak of the Czecho-Slovak crisis. In the six months from March to September the Exchange Account lost approxi- mately £147,033,000 worth of gold, with gold at £7 per ounce. At the current price of over ism. per fine ounce the loss would be equivalent to nearly £157,000,00o. But Great Britain's gold reserves after that loss still remain very formid- able. At September 3oth there were, at the price of £7 per ounce, £151,800,000 of gold in the Exchange Account and £537,900,00o in the Bank of England. This total of £686,700,000 becomes £735,700,000 at present prices. It must be assumed that some further amount has been lost since September, for sterling has been again under -selling pressure. But the movement represents the repatriation, mainly to France, of liquid funds which were sure to be with- drawn at some time or other. The consequent loss of gold should not cause undue concern.
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