Gold: A Pertinent Query For Mr. Nash

Chronicle (Levin), 10 March 1949, Page 6

Gold: A Pertinent Query For Mr. Nash

GREYMOUTH, Majrch 9. The Greymouth Chamber of Commerce is to ask the Minister of Finance to state the Government's objection to the sale of gold on the open market for doilar curreney. This decision was made following a discussion on the severe blow to'Westland resulting f rom the deeline in gold dredging which is said to be made uneconomie by the adjustment in the exchange rate and the compulsory sale of gold to the Reserve Bank. The Reserve Bank advised the "Chamber that as New Zea.land was not a signa^ory of .the International Monetary Fund Agreement, "the ruies do not apply directly to ns but the fund would have the right to object to the action of a niember country if it bought gold from any sonrce on a basis inconsistent with the. rules. Nevertheless, you will appreciate that the sterliug area's gold production is a potentiai souree of dollars, a faet which must be taken into account in any consideration of available avenues for the disposal of gold." Reference was made by members to the fact that all local bodies on the West Coast except one, had united in an appeal to the Government to grant some relief to the industry and it was stated there is available a "proved avenue" in the dollar area for the disposal of gold at a figure suffieient to niaintain the return obtained prior to the adjustment of the exchange rate.