MOBILISATION OF GOLD.

Auckland Star, Volume LX, Issue 307, 28 December 1929, Page 4

MOBILISATION OF GOLD.

1 AUSTRALIAN POLICY. Now that the bill providing for the mobilisation of the gold of the Commonwealth and controlling its export has passed both Houses of the Federal Parliament, it may be regarded as heing in operation, as the Royal assent by the GovernorGeneral may be taken as a formality (says the "Melbourne Argus"). Naturally the banks are anxious to learn the nrsu steps the Commonwealth Bank proposes to take under the newly conferred Powers, and a statement by Sir Robert Gibson, chairman, of directors, setting out tne policy the Commonwealth Bank intends to follow, would relieve the position While the banks are satisfied that the Commonwealth Bank does not intend to take any drastic action in the direction of suddenly seizing their gold reserves, they are, however, very much concerned regarding the external exchange position, and look to the Commonwealth Baiik to make an equitable arrangement which will enable the banks to carry on their overseas trading functions with as little disturbance as possible. ... It is admitted that present conditions are abnormal, and that the Commonwealth Bank Board will be faced with a serious problem when it proceeds to allocate among the banks exchange facilities abroad, but it is felt that the close relations that exist between the Commonwealth Bank and the training banks will enable a satisfactory scheme to be evolved. Probably the first step the Commonwealth Bank will take will be to communicate with the various banks and ask them what amount they hold in gold coin and bullion. When this information is received the Commonwealth Bank will be in a position to say what amount it may require each to put into the pool for immediate requirements.