GOLD STANDARD.

Press, Volume LXI, Issue 18372, 4 May 1925, Page 9

GOLD STANDARD.

STABILISING EXCHANGE.

EFFECT ON PRICES.

IBY CABLE— PRESS ASSOCIATION'—COPYRIGHT.) ASD S-Z. CABLE ASSOCIATION.)

SYDNEY, May 2,

Dr. Earle Page, Federal Treasurer, in an interview, said the retnru to the gold basis was another testimony to the financial strength and resource of the Empire. The return' to the free export of gold must have a great influence in stabilising exchange. It would be interesting to sec its effect on prices, especially in view of the fact that during the last few months the Australian pound has been at a premium in America, and consequently the return to the gold basis should not cause much fluctuation in price levels. NEW YORK EXCHANGE. (AUSTRALIA!? AXD X.Z. CABLE ASSOCIATION.) XEW YORK, May 1. Sterling is quoted at 4 dollars 84 3-S cents. PURCHASES OF BULLION. DESTINATION UNKNOWN. (austealiak and x-z- cable association) (Received May 3rd, 5.5 p.m.) LONDON, May 2. City financial experts are puzzled over the destination of yesterday's gold shipments which has not been announced. The "Daily Telegraph's" financial expert says yesterday's gold movement from, the Bank of England was £'414,000. It was offset by a small purchase of bats worth £IO,OOO. Rumour associated Australia with one of tho purchases. It is true it pays to send gold to Australia, but there was some doubt on the market whether Australian banks have yet intervened. There is no doubt, however, that a small amount wont to New York, with further shipments to Holland and Switzerland.

The "Financial News." commenting art the cabled announcement from Melbourne that the Associated Banks were considering the question of exchange rates, recalls Mr Churchill's remark in his Budget speech that so far. as the> Empire is concerned there will be unity of action, and comments that if there is no arrangement with Australia and the other Dominions not to encroach on the gold reserves, unity of action certainly is not complete. The article points out that Australian sterling aft present is at a big premium over British sterling, which, without doubt, constituted a menaco to our gold reserves since the shipment of gold from London to.Australia will roughly cost 33s per ceritum, which is cheaper than shipping from America. The inference is thab unless the premium ion Australian sterling oyer British sterling comes down to .such a point as will make it unprofitable to ship gold, almost undoubtedly such shipments will take place out of the British reserves. *