GOLD RESOURCES

Hokitika Guardian, 1 October 1931, Page 3

GOLD RESOURCES

THE MAIN HOLDINGS

(British Official Wireless.)

RUGBY, September 29

A number of questions in the House of Commons were answered on behalf of the Chancellor of the Exchequer. In one answer it was stated that the total monetary gold in the United States on •September 9 was 5,000,000,000 dollars, including some 550,000,000 dollars estimated to be in active circulation. The (increase since June 10 was 197,000,000 dollars.

It was-,, stated that the French gold reserves on September 18, totalled 58,francs, an increase of 2,050,000,000 francs since June 19.

The total gold held in the two countries was thus 7,295,000,000 dollars, or £1,499,000,000 at par, and it had increased in three months by 277,000,000 dollars or £57,000,000. The total monetary gold in the world might be estimated at. nearly 12,000,000,000 dollars, so that the two countries held just over 60 per cent.

It was stated that the total amount in English sterling of the transactions between English a,nd German bankers affected by a standstill agreement signed by representatives of the Bank of England and other bankers on September 14, and operating as between September 1, 1931, and February 29, 1932, was approximately .070,000,000.

GOLD MOVEMENTS

U.S.A. TO FRANCE

NEW YORK, September 29.

Approximately twenty million doF lars in gold, the largest shipment to leave the United States in a single day, in more than two years, left to-day for Switzerland and France on the Europa and Aquantania. The largest portion is for France.

U.S.A. GOLD FOR EUROPE

NEW YORK, September 29

Since Britain announced the suspension of the gold standard, the United States gold supply has been reduced by 238,337,000 dollars, only a small amount of which has been shipped. The remainder is earmarked for foreign account. Local bankers believe that heavy exports of gold will be made to Europe in the near future. GERMANY GOING OFF GOLD? LONDON, September 30. There has neen a heavy fall in the value of Germah .securities on the London market, it is following upon rumours that Germany is abandoning the gold standard. The Beilin Bourse remains closed. STERLING AT 3.91 DOjL'G’RS. RUGBY, September 29. Tn the foreign exchange markets sterling continued, to show an improvement on the most important centres this morning. The New York cable rate had risen to 3.91, equivalent to 16-3*;. On the London Stock Exchange, British funds opened good on a firm sterling rate. Markets generally remained inactive, pending an announcement regarding the pco'ected election. VANCOUVER, September 29. The exchange rate on Montreal is 4 dollars 30 cents to £l.

CANADA’S EXPEDIENT

TO OVERCOME STERLING SLUMP

OTTAWA, September 28

Designed to counteract the exchange fluctuations, regulations applying to imports from countries with discounted . or appreciated .-’currency, were issued to-day by the ’Department of National 'Revenue. When . appraised for duty, the currency value of the country -shipping the goods will be the determining factor. OTTAWA, September 29..

A Canadian Order-in-Counci 1 states that the value for duty purposes of all good imported into Canada from Great Britain shall be fixed at the par value of the pound sterling, namely 4/86 dollars ,2/3 cents, notwithstanding the prevailing rates of exchange. The tariff advantages of the British preference rates have been extended to Kenya Colony, Nigeria, New Guinea, Cyprus, and the British spheres of the Gameroons and Togoland. WINNIPEG, September 28.

..Free, trade with Brtiam will be considered by the United Farmers of Manitoba at more than three hundred meetings during the latter part of October.

RISE OF FOOD PRICES

LONDON, September 29.

In; the House of Commons, Sir Cun-liffe-Lister, in answer to questions, said that he was keeping in constant touch with food prices, and would use a Food Council, if necessary, to prevent profiteering. The wholesale price of wheat has risen twenty per cent, since 'September 19th, but the standard quotation" for flour has not increased. Butter has advanced five per cent. .Bacon was unchanged, and some brands of canned fruits showed vaiving advances. THE POLITICAL FACTOR, RUGBY, September 28. The' possibility of an early election was much discussed when the Stock Exchange opened this morning, and operators showed a disposition to await developments, trading , consequently on restricted lines, but the general tone was favourable an

steady. Among foreign exchanges, the Swedish kroner weakened to 17, following Sweden’s decision to drop the gold standard, but the Norwegian kioner was unchanged. Among British funds, consols fours rose half to £Bo.s, while war loan fives were steady at £93*. Treasury bonds were half to one belter, hut conversion three halves and fours each lost a half.

DOUBLE TAXATION IN BRITAIN

RUGBY, September 29.

In the House of Commons, Mr Snowden said that arrangements for relief from double taxation on certain profits arising through agency had been made with the Government of Sweden in an agreement dated last July. An agreement, w-th Switzerland was practically settled, and negotiations with other countries were proceedings, and would shortly be reported upon.

STERLING -SPECULATION

THE CASH LIMITATION

LONDON, September 28

Questioned whether the Government was taking steps to prevent foreigners gambling in the pound sterling, and forcing its value down, in terms of foreign currencies, Mr P. .Snowden, the Chancellor of the Exchequer, said : “The essential steps already taken are to balance the Budget, to set our faces against any sort- of inflationary measures, and control exchange purchases by persons resident in this country. It is not desirable to prevent the -realisaton of sterling assets by foreign holders at a sacrifice, if they decide to do so. As regards speculation, persons who sell sterling at figures welj below its intrinsic value, are incurring serious risks, and the remedy will come quickly enough, when they begin to make losses. In the meantime, it is essential that speculative operations should not be assisted by allowing fore;gners, or their nominees, to obtain new sterling credits in this country. In this connection, I welcome the decision of the Stock' Exchange Committee to limit- transactions, to cash dealings.”