COLD EXPORTS.

Manawatu Standard, Volume XLV, Issue 128, 4 May 1925, Page 5

COLD EXPORTS.

DESTINATION NOT ANNOUNCER. Received Mav 4, 8.5 a.m. LONDON,. May 2. City financial .experts are puzzled over the destination of yesterday’s gold shipments, which lm s imt been announced. The Daily Telegraph’s financial expert says yesterday’s gold movement from the Bank of - England of £414,000 offset tlie small purchase of bars valued at £IO,OOO. Rumour associated Australia with one of th. 3 purchases. It is true if pgy.s to §epd gold to Australia, but there was some ’doubt on the market whetlier Australian banks had yet intervened. There is no doubt, however, that a small amount went to New York, with further shipments to Holland and Switzerland. —A. and N.Z. cable.

GUESTION OF EXCHANGE RATES,

Received May 4, 8.5 a.m. LONDON, May 2. The Financial News, commenting on the cabled announcement from Meh bourne that tbe Associated Bunks were considering tbe question of exchange rates, recalls AJr Churchill’s repiarjc in Jiis Bduget speed) that so far as the Empire was concerned there would be unity of action, and comments: “jf there is 119 arrangement with Australia and the other Dominions not to encroach on the gold reserves, unity of action is certaijjly pot 'complete.” Tho article points out that Australian sterling js at pretest at a big premium over British N sterling, which without douht cpnstitues a menace to our gold reserves, since the shipment of gol<} from London to Australia wifi roughly cpst 3<is per centum/ which is cheaper than shipping from America. The inference is that unless the premium pn Australian sterling over British sterling copies dowp to such a pojpt as will make it unprofitable to ship gold, almost undoubtedly such shipments will take place out of British reserves. —A. and N.Z. cable.