OUTFLOW OF GOLD

Sun (Auckland), Volume II, Issue 584, 9 February 1929, Page 12

OUTFLOW OF GOLD

ARRESTED BY INCREASED BANK-RATE SOME ADVERSE CRITICISM Times Cable. LONDON, Friday. The City editor of “The Times” says the raising of the bank rate has immediately had the desired effect. The exchange on New York rose to the level at which gold shipments became unprofitable. In other words, monetary equilibrium has been established. Tho raising of the rate could no longer be avoided without further trouble. Gold would have eontinued flowing out, and probably would have forced up the rate to 51 per cent, later in the year. • The postponement would have cost the bank £7,000,000 in gold, which equals ten weeks’ inflow’ from South Africa. The eventual reduction in the rate would bo delayed to the same extent. The “Daily News” raises the question of the Treasury’s responsibility in acts such as the raising of the bank rate, the effects of which aj:e most unfortunate to industry. “HOLE-AND-CORNER SYSTEM" The paper says: “We do not believe the present hole-and-corner system of regulating a vital national concern by a few experts will long be tolerated. The public will rightly demand that a Minister should take the responsibility of explaining and defending tlie decisions.” The “Financial News” states that nobody can pretend that the increase is anything but an unfortunate necessity, but business men should not give its depressing effect undue psychological weight. There might be evidence or other conditions favouring industrial expansion. The "Morning Post” does not believe the general run of business will be checked by the moderate rise in the price of money. The “Daily Chronicle” describes the increased bank rate as a crushing blow to industry. Nothing in tlie industrial situation, it says, warranted the rise, which was due solely to the conditions in tho United States, where money is earning so much more than in Britain that American balances are being withdrawn from London. WASHINGTON KNEW A message from Washington says that while tlie New York Stock Exchange lias made the unexpected announcement that there will be no trading oil Saturday, which action is attributed to the Federal Reserve Board’s warning, Treasury officials indicated to-day that no immediate action of a positive character would be taken by the Federal Reserve Board unless forthcoming developments warranted such action. They further expressed the hope that there would be a gradual decline in the speculative activity in the stock markets which would ease the money market. It is felt that these indications are given in an elf or t to check too rapid deflation. ’ . , Mr. L. T. McFaddcn, chairman of the House of Representatives Committee on Banking and Currency, has attacked tlie Federal Reserve Board’s action. There is also some talk of an investigation into the alleged premature disclosure of the beard’s statement, of which certain speculators took advantage. . , it is also interesting to note that Treasury officials in Washington knew in advance of the Bank of England s intention to raise the idscount rate.

SOUTHERN EXCHANGES YESTERDAY’S SALES 2 J ress Association Wellington: Blenheim Oil, £6 ss; Taranaki Oil, Ss and 7s Id; 4i per cent. Stock (1939), £99 17s 6d; 5.i per cent. Stock (1933), £99 10s; Bank of New Zealand (long term), 28s 3d; Goldsbrough, Mort and Company, 53s 9d; National Insurance, 16s 2d; Westport Coal, 31s. Christchurch: National Bank of Australasia (£lO paid), £l9 6s: Goldsbrough, Mort, 53s Sd; Tooths Brewery, sos; Bea.th and Company (rights), 7 s (two parcels); Victoria Nyanza (cum div.), 455; Blenheim Oil, £5 15s; Mahakipawa, Is 3d (two parcels); Waihi, 14s 4d; Kuala Kampar Tin (cum div.). 15s 9d; Dunlop Rubber, 27s 3d; National Insurance, 16s 2d; New Zealand Government 5i per cent. Inscribed Stock, 1933, £lOl 7s 6d. CLAUDELANDS RAM FAIR ROMNEYS SELL WELL (From Our Own Correspondent) HAMILTON, Friday. Over 12 guineas was the average price realised for Romney rams at the second day of the Hamilton Ram Fair-to-day. The demand for Lincolns was not keen. 19 having been knocked down for an average price of under 31gns. A better inquiry existed for flock Romneys. The top price, 18gns, was secured for a fine pair of flock rams purchased by Mr. H. S. Hall, of Te Kauwhata. The excellent quality and breeding value of the stud Romney rams offered this afternoon evoked keen competition. Two "were sold to Mr. W. A. Thomson, of Ruapuke, for 37gns and 2Sgns respectively; to Mr. J. McNicol, Te Aroha, one at SOgns; and to Mr. T. Johnstone, Wliatawhata, one for 27gns. CHICAGO WHEAT (Australian and N.Z. Press Association) Reed. 9.30 a.mi CHICAGO, Friday. Wheat. —March, 1 dollar 24 cents a bushel; May, 1 dollar 27* cents; July, 1 dollar 29 cents. TE KUITI STOCK VALUES Dalgety and Co., Ltd., Te Kuiti, report having held their usual monthly sale at Matiere, when a fair yarding of both sheep and cattle came forward to meet with an exceptionally ready sale. The bulk of the sheep were bought by local purchasers, but buyers were present from the Te Kuiti, Taumarunui and Taranaki districts, quite a. number of the cattle going to the latter place. Prices ranged: Sheep.—Two-tooth ewes, 32s to 36s Id; the latter price being for a line on account of 11. Nelson, Tahua; fair mixed age ewes, 27s 3d; full-mouth ewes, 23s 6d to 265; failing-mouth ewes, in low condition, 13s 6d; two-tooth wethers, 28s; mixed sex down two-tooths, small, 255; mixed sex woolly lambs, 21s to 22s 4d; small shorn lambs. 17s 6d; aged rams Southdowns, £3 15s; others, 12s to 30s. Cattle.—Fat cows, £8 5s to £8 13s; very fresh-conditioned cows and heifers, £7 10s to £7 16s; other cows, £5 5s to £6 10s; two-year-old Shorthorn steers, £7 14s to £7 16s; 18-months steers, indifferent colours, £5 5s to £5 17s 6d; two-year empty heifers, £5 12s to £5 19s; steer calves, good, £4 Ss to £4 11s; others, £2 to £3 7s; heifer calves, best, £3 7s to £3 10s; other heifer calves, £2 6s to £3 Is: mixed sex calves, best, £4 ss: others, £2 10s to £3 11s; dairy cows and heifers, best, close' to profit, £9; others, £8 os; bulls, for potting, £6 5s to £7; weaner pigs, 12s to 14s. RUMANIAN CURRENCY (Australian and N.Z. Press Association) BUCHAREST, Thursday. The currency has been stabilised at 813 lei to the pound sterling.