Embargo On Export of Gold

Horowhenua Chronicle, 10 August 1916, Page 3

Embargo On Export of Gold

Following his intimation to the delagation from the Associated Banks .n Victoria that he was' not disposed; to permit the export of gold, as reported, the Treasurer of the Commonwealth

haa been in correspondence with tinbanks with respect to the terms upon which he will now permit the expmt of the precious metal. Shortly, th terms are that for every £100 of gol»l specie lodged with the Treasury, or the Commonwealth Bank of Australia, as its agent, the depositing bank will receive telegraphed payment in London f#r £98, The amount of £2 per £100 to be kept in hand to meet expenses of exchange, expenses of transit to port of shipment, 5« per cent commission to the Commonwealth 'or

escort and supervision of packing, etc., and, also, interest at iSank of England rate on the telegraphs i transfer, should there be any interval between the credit lodged in Loiulo;;. andi the actual shipment of the metal to the United States. The balance, "j any, of the £2 remaining, to be returned to the hank making the deposit. Ji urther, it less than par be received for the gold, the loss also to Do charged against the £2 margin. If however, over par should bo realized, then the profit to be retained by ino Commonwealth Treasury. It may \>o explained that flie prncuee j Sj t n .,t p,.. bank or ba-nks abroad! buying the mehai bear the cost of ocean transit, insur-

ance and other importing clia rjies, i>not oouree they consider such, in making their bide. At the same time, tlin Treasurer has intimated that the arrangement entered imto m ltn-f mwhich banks desiring credit in London could deposit gold: at the Commonwealth Treasury in truet tor the Hank of England is cancelled. The bank;., we understand, do not disagree altogether with the terns of commission charged for escort, etc., although tlicy think it ia too high, or the deduction of necessary expenses. They do however resent having to take ji. risk of loss in the transaction, while tlu> Commonwealth seizes any profit, ji more than par be realised; and '»tu phatica-lly protest against tho principle, or want of principle, of the interference of the Government with the ordinary business ot banking. Alre.i the effect of the Treasury's ill-ciii - sidored action is to impose furtn m charges on trade—"'Journal of Commerce, Melbourne.''