OVER 20 MILLIONS

Grey River Argus, 29 August 1939, Page 7

OVER 20 MILLIONS

Huge Gold Withdrawal FROM BRITAIN TO AMERICA. (Received August 29, 12.15 a.m.) LONDON, August 28. Within the past 48 hours twenty and three-quarter million pounds’ sterling worth of gold has left Southampton for Canada and America. Gold Price ROCKETS HIGHER. (Received August 29, 12.15 a.m.) LONDON, August 28. The price of gold has to-day advanced by six shillings to 161/- per ounce. GOLD COMMANDEERED. IN' AUSTRALIA. (Received August 29, 12.15 a.m.) CANBERRA, August 28. Regarding the new exchange control, cabled earlier, the rates of exchange on London are to continue unchanged until further notice. All gold is to be handed over by the possessors to the Commonwealth Bank.

WOOL PRICE DROP. FEARED AT SYDNEY. (Received August 30, 12.15 a.m.) SYDNEY, August 29. The postponement of the opening of the new season’s wool sales, as cabled earlier, is due to the unsettled international situation. The official opinion is that the situation will affect prices, thus rendering it difficult to sustain values at the levels ruling at the close of the Australian June sales. , Thus it will have an important bearing on future auctions.

Financial Barometer LONDON “BEAR” RAIDS FIFTY MILLION LOSS LONDON, August 26. This week will be a memorable one in British financial history. A ■ brave fight to hold sterling against tremendous odds failed. Bear raids throughout the week were so continuous that the authorities probably lost nearly £50,000,000 in gold since Monday. Simultaneously, sharp rises in the price of gold, amounting to 6s 7d in two days, revived interest in go ld shares. It is estimated that every increase of 2s 6d in. the price of adds £1,500,000 in profits to the South African gold mines alone. Stock exchange markets closed the week optimistically. Similarly a wave of optimism swept the marine insurance market on Friday afternoon. Business in .war: risks is proceeding along normal lines. LONDON, August 26. The foreign exchange market experienced an active session on a Saturday, this being the second day of the withdrawal of “control.” In the absence of support from the Exchange Equalisation Account, there was a further appreciation against sterling. London on New York closing at a mean rate of 4.40. A new record was made by gold, which went to £7 15s a fine ounce, against £7 10s 6d yesterday and £7 8s 5d on Thursday. Standard silver was quoted at 20 l-16d an ounce spot and 195 forward. In banking and financial circles, the decision to suspend the operations of the Exchange Equalisation Account in order to protect British gold reserves from the severe strain of fhe flight of foreign capital is still the subject of commendation.

There is, however, a tendency to emphasise what is understood to be the official view of the financial' measure taken in the last few days—that they are essentially' temporary measures to deal with special and temporary conditions. BUENOS AIRES, August 25. The banks have suspended all dealings in foreign exchange. ■* LONDON, August 25. In view of the crisis and the financial measures taken, the Treasury bill rate jumped. : . The total amount applied for in tenders for £30,000,000 in Treasury bills was £50,405,000. The average rate per cent, for the bills at

| months was 74s 5.44 d, against 15s 7.39 d ' a week ago. LONDON, August 26. Friday’s closing prices on the London produce market were:— Cotton —Spot, 5.52 d per lb; September, 4.97 d. Rubber—Para, B£d per lb; plantation smoked 7gd. Jute—Nominal; no prices available. Linseed oil —£29 10s a ton. Turpentine—4ls per cwt. Copra—September-October ship'ment, South Sea, £9 7s 6d a toft; smoked, £9 ss; plantation RabaUl, £lO 7s 6d. LONDON, August 25. An Inedpendent Cable message says that the Bradford wool trade is almost at a standstill, in consequence of the international tension. There is a general disinclination of deal, pending clearer conditions, and most firms refuse to quote new business. It is generally known that in'the event of war the free wool market in Britain will cease to exist and it is no secret that a control organisation is established, ready to function at. a moment’s notice. N.Z. Mutton Surplus BRITAIN NOW TO BUY IT ' CHRISTCHURCH, August 28.' It is reported that the British Government has decided, as a defence precaution, to take over the whole of New Zealand’s mutton surplus, amounting to about 1,000,000 carcases. No confirmation could be obtained from the freezing companies, or 7 the local representative of the Meat Producers’ Board, Mr. H. D. Acland. The Board, he said, would meet in Wellington to-morrow, but he knew nothing of any decision to take over the surplus. This season, because of the restriction placed on' New Zealand exports of mutton and lamb to Britain, and heavy killings, the Dominion has a surplus of between 25,000 and 27,000 tons. ■ ..'i; It is assumed, if the report is correct, that Britain would want New Zealand mutton for canning. In exploring possible uses for the Dominion’s surplus, the Meat Board con? >sidered canning. It was found tfiattHe’ Army and Navy preferred canned beef, and only 3,000 out -of every 70,000 tins of canned meat soldin England were mutton. : .