CURRENCY HOARDING

Dominion, Volume 31, Issue 156, 29 March 1938, Page 12

CURRENCY HOARDING

Premium On Gold Coins

One of the clearest indications of continuing distrust in the Continental currency situation is the persistent hoarding demand for gold coins in the London bullion market, says the “Economist.” The size of the turnover in these coins is difficult to estimate, since dealings in coins are not included in the published figures of gold dealt in at the fixing. But the Customs returns provide a more useful guide. They suggest that the “market” has lately been very active. Imports of coins from the beginning of the year to February 7 amounted to £4,565,00(2, against £4,943,000 for the whole of 1937. Exports were £4,606,000 for the first five weeks~of 1938, compared with £4,796,000 for the whole of last year. Another indication of the increased demand for gold coins is the premium bid for them, which, since the beginning of this year, has risen from about 3 per cent, to 4 per cent, over the bullion price. The semi-official embargo on dealings in gold coins at a premium, which was imposed on the London market in 1936 in deference to the French Government’s wishes, has now been withdrawn. The Customs returns show that, of the exports of coin from the United Kingdom this current vear, France has taken £2,363,000, the Netherlands £1,582,000 and Switzerland £620,000. France is obviously the chief magnet, and it may be assumed that the bulk of the coins exported to the Netherlands and Switzerland have been bought on French account and consigned to those countries for safe custody. Britain’s main source of supply of coins during this year have been Canada (£1,941,000), Venezuela (£691,000), Belgium (£677,000) and the United States .(£677,000). Certain central banks have recently decided to profit by the existing and abnormal premium on coins and have sold part of the holdings of coin in their gold reserves against purchases of bar gold. Exports from Belgium are of this nature, and so are those from Canada; for the only appreciable stock of coins in the Dominion is held by the central banking authority. The Netherlands Bank has also been selling gold coins against bars, in order to supply the Dutch market, where demand was particularly keen when the semi-official erpbargo precluded dealings in London. N.Z. APPLES IN LONDON Market Overtaxed The Department of Agriculture has received the following cablegram from the High Commissioner for New Zealand, London, dated March 25: —Fruit: Port Jackson shipment dicharged in sound condition. Markets are overstocked. American price Cox’s Orange apples 17/-, 22/6. Worcester Pearmain 8/6, 10/6. Alfriston 8/-, 10/-. Gravenstein 7/-. 8/6. American Jonathan apples 6/-, 7/-. Winesap 6/-, 7/3. Newton Pippin 7/-, 10/-. Gold Mining Returns Gillespie’s Beach dredge reports a washup of 3Soz. 13dwt. from 11,616 cubic yards worked on the lagoon side in 118 hours. The Worksop Extended Gold Dredging Co., Ltd.’s, return for the week ending March 24 is 28oz. for 128 hours worked and 10,500 yards treated. By Telegraph—Press Association. Dunedin, March 28. Clutha River Gold Dredging Ltd. reports a wash-up of 201 oz. for 140 hours work during the week ended March 2,j. This return is the best for some time and brings the total production since operations commenced last May up to 8000 ounces. Auckland, March 28. The Mataki dredge return for the week ended March 27 was 31 ounces for 135 hours’ work and 8500 cubic yards worked.