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The balance of payments of the United States / by Lord Keynes
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THE ECONOMIC JOURNAL

[JUNE

After she entered the war, the net short-term position of theUnited States deteriorated substantially; so much so that byOctober 1945 she had dissipated by far the greater part of her largegains from ourselves and others in 1939, 1940 and 1941 before sheentered the war, and was only very slightly stronger, after de-ducting her increased foreign liability from her increased goldreserve, than at the end of 1938, an increase of $5,524 million ingold holdings and of about $200 million in currency holdingsabroad being offset by an increase of $5,175 million in foreignliabilities, as is shown in Tables III and IV.

Gold held under ear-mark for foreign account at December 31,1945, represented $3,994 million.

The fact that the U.S. Administration blocked the resourcesof a number of foreign countries during the war, and that theseassets remained blocked throughout the war-period, has madeavailable fairly accurate statistics of the very large dollar hold-ings of the countries in question, which stood at the end of thewar as follows :

Table VI

Distribution of Blocked Property by Nationality of Owner{as of June 14, 1941)

Netherlands, including Netherlands (East) Indies . . . $1,800,000,000

Switzerland ,........ 1,500,000,000

France and Monaco ........ 1,400,000,000

Belgium .......... 400,000,000

Sweden .......... 600,000,000

China.......... 300,000,000

Norway .......... 100,000,000

Japan .......... 150,000,000

Germany ......-. 150,000,000

Italy ........... 100,000,000

All others.......... 750,000,000

Blocked nationals resident in the United States (other than

business enterprises owned abroad) ..... 500,000,000

Holdings of American citizens in blocked enterprises . . 750,000,000

Total . .......$8,500,000,000

Distribution of Blocked Property by Type of Property(as of June 14, 1941)

Short-term funds, including ear-marked gold .... $4,000,000,000

Securities.......... 2,000,000,000

Direct investments and miscellaneous ..... 2,000,000,000

Holdings of blocked nationals resident in United States . . 500,000,000

Total........ $8,500,000,000

Note.The above tables appear on page 223, Report on Hearings before theSubcommittee of the Committee on Appropriations, House of Representatives ,Seventy-ninth Congress , First Session on the Treasury Department Appropria-tion Bill for 1946.