FINANCE AND COMMERCE.

Press, Volume LXVI, Issue 20093, 24 November 1930, Page 12

FINANCE AND COMMERCE.

VHE WOKLD'S GOLD.

HOW FT 18 DISTRIBUTED.! Bl'r HOLDINGS IN THE L NT TED j STATES AND FRANCE. . .c rr.c-osajo rrc-r- Washir.gtoz, -.ich appeared in Saturday -'s issue, setg or: ihai tO per cent, of tho •• js - ' h-?3 in the cofleri of t0 "/ritcd---: re.. *e.- (.£ 900,000,000 > and 1 .-jsr,«. £ lOj.i/'jO.OOOfa lends itseli to tabic ec-.'aiiied n the October issue r :lv. r.ior.-.h'y Letter of the National ct New York, gi-'irsg tho _■'!! ei t/.s rriucipal countries r v. orld. as on Junu 30th list, cora'ied :ron: the federal Keserve Buiie:3. 1 :.c-rc is also given the gold re- • •'•: v?;. .-c-tpj-ct of the tamo countries i -■* os Dectrtr.jcr iist, 1012, compiled ■ ■;osi the Kepvrt of the Director of the ; ■hut. 101' i, and the percentage of , (increase or decrease) between 'he two periods. The figures for both i ears are th>: oflicially reported hold- I rgs of banks and public treasuries. ' The table follows, except that th-j , relatiiiL' to the gold holdings o:i ' December 31st, 1012, are not given. The percentage of change is between the tota»3 o? December olst, 1913, and rhose of June 30th, 1930. Decreases '■re indicfited by the contraction ■•Dec.'*; all others are increases. Ths amounts are approximate, dollars havbeen transposed into pounds sterling ' Tj bs;;:-. o:' f.' c dollars to the oound e.. o: charje. et'. 5i j. l . . : it-,600.00-'' 'M.I . "4J.J00.0C"-' 173.0 r r?TTZZZ 12 4, 506. 00-J IjC.r l .-'4,300 OvO 1 0.0 s :uv r;3,-100,000 30 7 o -na«n '' , .i,4oo,OC'J 2S4.fi i " • l.suu.OOu icx.O j .-vitrivlirs V... 400,00_ VJO.-I -.-edc- 1 13,000,000 1 10.7 i P Coo,uo j .1 1 or.-..;,- . . 7.5C0,000 i.1'0.0 : 'jie.: Tii-il Z'-'-fi94.500,000 Ti.1.0 .-u-'trii Huosr.ry ar.J ??e*ho-S:'lo*. akl-i 1 ;"'. = 00,000 0 0.3 Poland . !ri,oO0.00 ; j • liumsnia *1,200,000 So.O •- r .i 3.400,000 70.0 «'ire«ce . . 3,600,00u iotj.7 rialar.'l .. 1.000,000 15.3 1i.000.0C0 Bulgaria . - 2,000,000 iota! seco-d sroup 07.400,000 o.Li Total Europe ; (outaide Hu-siia) 1)52,'200,000 125.-1 ICUiSja . - 40.600.000 dec. 6S.G I /otal Europe . . 092,600,000 Su.s ! Uaited States . . 535.G00.000 179.4 t anadi. . . 26,000,000 doc. 42.0 t Aryemin* 56.6 > livann 17,800,000 dec. 20.4 j Chile . . 1,600.000 Peru . . 3,200,000 220.0 Coloir.bia . 4,000,000 Total Antcric&i . 0(56,200,000 136.1 • - 8G.800,000 236.-4 Tr.C-a . - 25,600,000 3.2 «a*trrT.:» 13,200,000 dec. 40.5 0,500.000 111.1 ai4 Afv.cx 6,300.000 dec. 20.0 '/'jVnl .. 141,200,000 54.1 cousLiriC* 2,100,000,000 90.0 •Tbe rire---.hr sold holdings of the monetary of ,-ian ELrpjrra '..ere in parr disposed of during :he war and ir part pa£scd to the succeisioa. Ir *.v:ij be coiriments the Letter, M'.at a.3 a rulf; the principal countries of iluropo, singly and as ti group, havo not fared badly in the distribution of £OH since 191/. Italy has gained tho U.xßt, and Great Britain next, but i one of the other countries in the first has gained less than 100 per cent. The aggregate gain for the tirst is 149 per cent. Even the Banlc of England shows an increase of 94.4 per cent., if the combined holdings ot* itself and all other British banks are included. If the calculation is contined to the Bank of England the gain | from 1912 to 1930 would be 419 per cent. ;

There has been no such increase in j the psysical volume of trade of theso 1 leading countries, or even in tho value I of their trade reckoned at the higher | money valuations of tho post-war years. The gold holdings of the Bank of .Knglasd at the end of 1912 were only about £29,600,000. This constituted 'he working reserve of the country. The holdings of the joint stock banks were precautionary, prompted by the old idea that a bank might have to pay out large sums to alarmed depositors, and that a bark B3 big, or bigger, than the Bank of England, should make some T'Toviaion on its own account. progress has been made since that time in the development of the resposibilities of a central bank. In fact, the Bank of England was handling the foreign exchanges of Great Britain before the war oil about 20 per cent, of its present reserves. I How the United States and Trance Gained. liie United States and France have gained largely, and almost at the sapie rate. In the case of France, as with Germany, Great Britain, and other countries, much of the increase has heen in the form of coin that before the war had been in circulation, tills, and private banks. But during and following the war the French people accumulated important credits abroad which, dinco tho stabilisation of their currency, they have been gradually bringing home. In the case of the United States, tho country's trade position, during the war and since, has been one factor, but perhaps an even more important factor has been the voluntary action of foreign banks, corporations, and individuals in choosing New York as a place for tho employment of reservo funds. An annual enquiry, conducted for several years by the Department of Commerce, has shown that the total of foreign funds employed in the New York money market has been, approximately, equal to thi sum of this \ United States] country's gold acquisitions since 1914. The Federal Reserve authorities have not followed a policy of gold acquisition, but have endeavoured to avert gold imports as far as possible. They feared inflation, and fully realised that excessive supplies of gold would result in credit disorders. The figures for Australia, South American countries, and Japan on June 00th, 1930, have been affected by the loss of very considerable sums in the last year on account of the falling price 3 of their products, and resulting adverse international balances. Percentages of Gold Reserves. Comprehensive tables are given in the .etter comparing the ratio of gold reierve to liabilities in the United States "■id in Great Britain. In tfispect of the waited States the percentage of gold : cserve to liabilities on June 30th in --'-h year mentioned was:— ' • •• 5 - 95 *•*2- .. . . 1927 . . 7 48 less :: 6i i , •- <SM

t'lie percentages ieiating to Great ( Britain are as on December 31st of tha j years mentioned:— ! 192" . . , O.sS 1928 . . 5.90 1020 . . . . S.SS : It will bo seei-., comments the Letter, | that the Bank of England percentagca ' are lower than the Federal Iveserve percentages, but all things considered tho differences are not large. The consolidated reserves of the Federal Reserve system are the aggregate of the holdings of twelve institutions, located in different sections of the country, from Boston to San Francisco. Taking account of this division of reserves, and of the fact that the United States has more than 25,000 independent banking institutions, most of which are not members of ihe Keserve system, tho banking system of this country cannot be considered to be as cohesively and effectively organised as that of Grea-s Britain. In the latter country 90 por cent, or more of the banking business is done by fewer than 20 banks, grouped closely about the Bank of England, and serving the country through their thousands of branches. These differences it: organisation clearly affect the efficiency of the reserve:-. KAWARAU GOLD I MINING. j | AMALGAMATION DETAILS. ! i I ITH3! P2.ESS lipeciai Service. J j DUNEDIX, November 2'-'. The annual report of the directors | of the Kawarau Goldrumiii;; Company j contains the follov.iug clauses: —"It has always been the ultimate object of I the amalgamation scheme, onto the I different interests on tho river wcro I united, to arrange for some eminent mining engineer to iuspeet the river and investigate its possibilities, to furnish a report on the whole scheme, and, if possible, to suggest some practical means of working it. With the visit of Professor I'. G. Hornell, the Swedish engineer, engaged by the Government iu connexion with the Arapuni hydro-electric scheme, an opportunity existed which might not easily arise again, and tho trustees, with the co-operation of the directors, approached Professor llornell, and arranged for him to visit Cromwell, examine the river, and furnish a report. Professor Hornell arrived in Cromwell on October 24th, accompanied by Mr H. Vickermnn and others, and spent the week-end" investigating the river. To facilitate his investigation tho gates were closed on Saturday, October l2oth, at 2 p.m., and reopened the following day. "It is understood that Professot Hornell will require some considerable time to prepare his report on the Kawarau river, and it is not anj ticipated that the report will be avait- ! ablo until the beginning of next year, j As far as can at present bo gathered, I Professor Hornell considers that the I mining of tho river-bed should not j present any insuperable difficulties, and it is hoped that be will evolve somo I practical . method of operation. The i payment of the actual, expenses atI tendant upon the investigation of tho j river by Professor Hornell aild party j has t>Cen undertaken by tho trustees for the nerf- company, but thev are not entitled to obtain tho report until they are in a. position to pay Pro- ' fessor Hornell's fees. This will only I Ix) after the new amalgamated company is registered, and has taken over j the assets of tho present IvawaraU j Company, which will remain ! paying the company's debts and uettlinz certain, contingent liabilities. "In the meantime the solicitors for the trustees arv, engaged in the logai work, preliminary to the formation of the now company, which will be tcrcd as swa fls possible. When registered, the new company will he entitled to aeouire bv assignment all tho assets of tho claim-holders •m rf parent company, and tho omal£ramation will thus be completed."

KEEPING MONEY IN THE | COUNTRY, j

% 1 THE EFFECT OF ART UNIONS. How many of us view with disfavour thoso who send their money overseas to A-ustraliiin Art Unions and other lottcric3? Thosa v.-ho do will welcome the news that one of the great Australian Art Unions, the Queensland Golden Casket is noticing a marked falling oft' in New Zealand returns. This is all to the good, and thanks are due to tho far-Bight«>d promoters of Art Unions in this country to conserve New Zealanders' money to New Zealand. Despite the grumbles of a few, Art Union 3 do good. The Government do not license private trade in lotteries like some countries, but do encourage good •works and good causes by their permission granted to run Art Unions for noble objects. Most folk like a little gamble and it is far better that our money, particularly at this juncture, should remain in our own country, than find its way overseas whence it so rarely comes back. So let's keep our chance money in the Dominion, and if vre want a flutter, by all means let it be a NewZealand one. —1

MEAT SHIPMENTS TO GLASGOW. ii'F.ESS ASSOCIATION TlUfiXill.l ASHBURTON, November 22. With reference to tho Glasgow meat dealers' complaint to Mr Forbes, aa cabled yesterday, that they could not get enough New Zealand meat, Mr D. Jones, M.P., chairman of the Meat Board, Says that the Board has arranged earlier and larger shipments to Glasgow this year. LONDON QUOTATIONS. (VJSiTrfl fA£33 • ASSOCIATION KLSCTAIO Ttt A ?H- - COPYRIGHT.) (Received Kovembor 23rd, 5.5 p.m.) LONDON, November 25. Friday's closing prices were:— Cotton.—December 5.73 d. Rubber—Para ' 6d, plantation Bmoked 4 9-16 d. Jute—November-December i'lo 2s t>d. Hemp—None offering. Copra—December, South Sc-a £ls 10s; plantation Rabaul £ls 15s. Linseed Oil—£27. Turpentine—36s 3d. RABBIT SKIN .SALES. Da!>ety &nd Co., Ltd., Cbristcbareh, have received the fdliawiEj* cablegram from their London orace, dated Kovomber 2lst:At the rabbit tkin sales 2634 balds w6re offered and 1550 sold. Deinand E«>od for furriftxs. Winter tliin pelts aid first Incoming SO p6r cint. higher, bucks 10 to 20 per ; eeat. .higher. Hatters difficult to sell. Pullmfc 10 per cent, lower, unpolled 20 per dent. letoer. BeeJcc, li*rht, about September aretes.