GOLD AND EXCHANGE

Evening Post, Volume CIX, Issue 102, 4 May 1925, Page 5

GOLD AND EXCHANGE

UNITY NOT COMPLETE

INDUCEMENT TO SHIP TO AUSTRALIA.

■ (UNITED PRESS ASSOCUTION-COPIBIOBT.) (AUSTRALIAN-SEW ZEALAND CAIILB ASSOCIATION.) LONDON, 2nd May. Ihe "Financial News," commenting on the cabled announcement from Melbourne that the Associated Banks were considering the question of exchange rates, recalls Mr.'Churchill's remark in las Budget speech that so far as the Empire was concerned there would be unity of action, and comments- "II there is ho arrangement with Australia and thfe other Dominions not to encroach on the gold reserves, unity of action is certainly not complete." *The [article points out. that Australian j sterling j s ilt present at a. big •premium over British sterling, which without I doubt constitutes a menace to our "oJd j reserves, since the shipment of "old j from London to Australia will roughly cost 33s per centum, which is cheaper than shipping from America. The inference is that unless the premium on Australian sterling over British sterliji" comes down to such a point as will make it unprofitable to ship gold, almost undoubtedly such shipments ' will take place out of British reserves