226 The Stock Market Crash—And After 
Influence of Gold Exports 
Mr. Kent's analysis is supplemented by the view 
of Mr. George E. Roberts of the National City 
Bank of New York. Addressing the Academy of 
Political Science of New York on November 22, 
1929, Mr. Roberts discussed the influence of the 
plethora of gold that came to this country because 
of what he calls the abnormal social, political and 
economic conditions in Europe after the war; this 
was followed by our export of gold to aid European 
reconstruction during 1927 and 1928, when many 
countries were returning to the gold basis and a 
large aggregate of foreign loans was floated in the 
American market. By the export of gold in this 
period we suffered a net loss of $500,000,000 in the 
basic standard metal. Mr. Roberts says: 
“The change in the situation effected by the loss 
of gold, while influencing the attitude of the banks, 
did not command the attention it deserved from the 
speculative public. The market was under too much 
momentum to take it seriously. The market was 
strong in the opinion that it could get what money it 
needed by paying higher interest rates, and proceeded 
to demonstrate that theory with considerable success. 
Of course, it is known that higher interest rates will 
attract money. They have a saying in London that 
10 per cent will draw gold out of the ground.” 
As a reason for these high rates Mr. Roberts fur- 
nishes this example: 
“Throughout the four years 1918 to 1921, New