BRITISH GOLD EXPORTS

Dominion, Volume 18, Issue 182, 4 May 1925, Page 9

BRITISH GOLD EXPORTS

FINANCIAL EXPERTS IN LONDON PUZZLED AS TO DESTINATION OF SHIPMENTS IS AUSTRALIA CONCERNED? London financial experts arc puzzled over the destination of gold shipments ' from Britain. The “Financial News” considers that Australian sterling being at a big premium over British sterling constitutes a menace to Britain's gold reserves. I Bt Telegraph—Press Association. Copyright • (Rec. May 3, 5.5 p.m.) , London, May 2. City financial experts arc 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 £114,000 offset the small purchase of bars valued at £lO.OOO. Rumour associated Australia! with one of the purchases. It is true it pays to send gold to Australia, but there was some doubt on the market whether Australian banks had vet intervened. There is no doubt, however, that a small amount went to New York, with further shipments to Holland and Switzerland,—Aus.-N.Z. Cable Assn.

MENACE TO BRITAIN’S GOLD RESERVES AUSTRALIAN STERLING HIGHER THAN BRITISH (Rec. ,May 3, 5.5 p.m.) * Londcn, May 2. The "Financial News,” commenting on 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 was concerned there would be unity of action, and comments: "If there is no arrangement with Australia and the other Dominions not to encroach on the gold reserves, unity of action is certainly not 'omplete.” The article points out that _ Australian sterling is at present at a big premium over British sterling, which without doubt constitutes a menace to our gold reserves, since the shipment of gold from Loudon to Australia will roughly cost 335. per centum, which is cheaper than shipping from America. The inference is that unless the premium on Australian sterling over British sterling comes down to such a point as will make it unprofitable to ship gold, almost undoubtedly such shipments will take place but of British reserves.— Aus.-N.Z. Cable Assn. TESTIMONY TO FINANCIAL STRENGTH OF EMPIRE FEDERAL TREASURER’S VIEW Sydney, May 2. Dr. Earle Page, Federal Treasurer, in ail interview, said the return 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 see its effect on prices, especially in view of the fact that dunig tin 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.—Press Assn NEW YORK QUOTATION FOR STERLING

New York, Alay 1. Sterling is quoted at 4 dollars 84} cents.—Aus.-N.Z. Cable Assn.