GOLD AND STERLING.

Auckland Star, 4 September 1939, Page 4

GOLD AND STERLING.

BRITISH POLICY. Groat Britnin in permitting exchange to «,) it* own way, but in controlling the in another manner. Sales of loreigu securities are prohibited. Uy this menus Rritain will be able more effectively In mobilise her foreign investments for disposal abroad when she" finds that she needtt supplies of other currencies to make necessary purchases. She will not have to dispose of her gold holding* for this pHrpnso until t.lin supply of foreign securities runs out. As sterling is not now being held by gold, violent fluctuations must be expected- Supply and demand will rule to a great extent, and psychological considerations will also come into play. The price of gold will vary in largo measure as the sterling dollar exchange fluctuates, and 1111 example of the violent changes which may take place is in evidence this morning. The price of gold was fixed in London on Friday at £8 per fine ounce, only a shilling below the record. Disseverance from the sterling bloc of currencies of those present members which are determined to remain neutral is onJy natural. Also they can sec no object in forcing depreciation of their currency. Finland and Sweden have already taken this step.

SOUTH AFRICAN GOLD. JOHANNESBURG. September 1. The Chamber of Mines has protested against the Government V decision to retain gold profits above 1-Vi an ounce .is » blow to confidence and I depaiture from previous Government policy, mid preventing the expansion of the mining of lower trrade ore.