GOLD STANDARD.

Manawatu Standard, Volume XLV, Issue 126, 1 May 1925, Page 5

GOLD STANDARD.

PROVISIONS OF THE BILL.

BANK OF ENGLAND'S POWERS.

LONDON, April 29. The Gold Standard Bill, which wua rend a first time in the House of Commons, repeals a sub-section of the previous Act under which the holder of a currency note entitled to obtain gold payment at the face value. It repeals the regulations under which any person is entitled to have gold bullion minted but makes an exception in the case of the Bank of England. Nevertheless, it enforces on the Bank of England the responsibility for redeeming legal tender on request in the form of bars of gold bullion of approximately 400 ounces. Finally, it empowers the Treasury, on any condition it thinks fit, to raise any money necessary for exchange operations, provided suclr loans c-r credits are redeemable within two years.—A. and N.Z. cable. AUSTRALIAN SATISFACTION. "SYDNEY, April 30. Bankers and business men generally express satisfaction at the return to the gold standard. Mr Bruce (Federal Premier) has requested the associated banks to use as little gold as possible und to continue business with paper ourreney, a request in which the banks concur. It is considered likely theie will be a temporary demand for gold currency, chiefly by- people who want again to experience the novelty of handling sovereigns, but the great bulk of business will continue to be done on a paper basis.—Preis Association. IMPROVING WORLD TRADE. NEW ZEALAND WILL SHARE BENEFITS Received Mav 1, 9 a.m. LONDON, April 30. The probable effects of the return to the gold standard on the Australian and New Zealand exchange are arousing considerable interest in banking circles. Several leading Australian banaershave been interviewed, and the general opinion seems to be that the exchange rate cn Australia anil New Zealand will get easier. One declared that it should result in lowering the premium either way to the cost of shipping tlio gold and about seven weeks’ interest. Bankers consider that the easing of the exchange will net greatly influence Australian and New Zealand trade as the volume depends chiefly on the ability of the public to purchase the goods and the question of the exchange does not arise, but the resumption of the gold standard and the reduction in the incomo tax arc likely to improve world trade, and increnso the public’s spending power, and the Australian and New Zealander share therein. —A. and N.Z. cable.

STERLING EXCHANGE.

NESV YORK, April 30. Sterling, closed on tho Exchange on Wednesday at 4.84 i dollars. —A. and N.Z. cable. STABILISING THE EXCHANGE. BENEFIT TO EXPORTERS. Tho Government of Now Zealand was consulted by the British Government regarding the'prohibition of gold export, according to a statement by the ActingMinister of Finance (Sir Francis Bell). He understood that the Chancellor of the Exchequer was announcing that the prohibition of the export of gold would cease to have effect at the end of the present year in the United Kingdom, the Act which authorised the prohibition being allowed to lapse. The power to prohibit the export of gold would bo retained by the Government, said Sir Francis Bell, but they would freely license its export. The New Zealand Act provided that there should be no export without the license of the Finance Minister. Tho granting of licenses did not moan, however, that the sovereign would come into circulation right away, as back notes were still legal tender. In official financial circles, it was stated that the free movement o: gold would not actually bo attended by gold in circulation among the people. The conditions would be comparatively the same in New Zealand as in Great Britain

“The position may, however, be elaborated slightly/’ said une official, “by stating that the British announcement is one of the most important and satisfactory steps taken since the war stopped gold currency. It will do more to stabilise tho exchange than anything else. The effect on New Zealand will be beneficial, in that exporters of primary produce will experience an easier exchange in London.”

EARLY ACTION DESIRED

Per Press Association. CHRISTCHURCH, Aprii 29. Referring to the return to the gold standard, 'Mr W. Machin, president of the Qa.ntqrhury Chamber of Commerce, said: “I expect that the banks will tnalc9 ail announcement on this subject before long, bus in tho interests of the producers and commercial community it is imperative that they should do this at once. As the Government is io J largely interested in bunking in New Zealand it should take tho first step immediately in thß interests of the Dominion. It will be the wish of all Chambers of Commerce that notion should be taken at onco.”