MOBILISATION OF GOLD

Hokitika Guardian, 3 January 1930, Page 1

MOBILISATION OF GOLD

FIRST STEP IN AUSTRALIA

MELBOURNE, Dec. 21

The first step under the Act recently passed by the Commonwealth Parliament giving > the Commonwealth Bank power to take over the gold reserves of the trading banks in exchange for notes has been taken. \esterday the trading banks received a, letter from the governor of the Com- 1 monwealth Bank in Sydney (Mr E. C. Riddle) containing important suggestions.

The terms of the letter have not been disclosed, but it is understood that they have not been couched in legal verbiage. The Act empowers the Commonwealth Bank, to “require” any jperson to furnish particulars of the gold coin and bullion held by him. and to “require” any person to exchange such gold for Australian notes. It is believed that the portion of Mr Riddle’s letter dealing with this aspect is in the nature of a suggestion that the banks might first of all furnish figures showing their gold holdings. For the present no request has been made that the gold should be handed over. The directors of the Commonwealth Bank have apparently preferred not to adopt a formal attitude under the powers conferred by the Act, hut to treat the difficult matter of gold holdings and their l>earing on the exchange position as one in which a '.financial institutions are equally interested in seeing that an equitable 1 arrangement shall be arrived at which will he to the advantage of the trading community and Australia as a whole. It is the intention of the trading banks to hold a meeting as soon as possible to discuss tbe general policy to bo adopted on the gold position as well as on other matters dealt with in the letter from the Common- ■ wealth Bank. Doubtless the “cover each bank has in London for ex- . change purposes will enter iht° 10 .question, and how far these particulars can ibe made available to the Commonwealth Bank will be consider•ed. Whe* these and other point* :have been settled arrangements will probably be made for the holding o fa conference of general managers ? ■the trading banks and thes director of the Commonwealth Bank >foi ■purpose of ensuring the smooth working of the Act.