LOSSES OF GOLD

Hokitika Guardian, 5 October 1929, Page 6

LOSSES OF GOLD

FRUITLESS PETITION BY PRODUCERS. WELLINGTON, October 3. The tributors and small gold-pro-ducers of Thames, who have so persistently sought compensation for losses suffered :is a result of the restriction placed on the export of gold during the war years, have little to hope for, the Minister of Lands stating in the House to-day, in reply to an urgent question by Mr Samuel ’(Thames), that there was no indication that their claims could ho further considered.

From 1914 to the end of the war, New Zealand producers wore paid only £3 17s 6d an ounce for their gold, yet it was selling in England during the same period for £6 17s 6d to £7 an oundq. In petitioning Parliament this session, the small producers suggested that a slightly increased tax on the note issue, to ho discontinued when the necessary amount had been raised, would enable the Government to recoup producers for the loss sustained. In other countries, it was pointed out, producers were paid an incieased price for their gold during the period of higher prices. - Gold to the value of over £5,000,000 was exported from the Dominion. In the petition presented this session, the estimated amount of loss suffered owing to the discrepancy between the market rate and the price paid was not mentioned. Mr Samuel asked the Prime Ministerd an urgent question regarding tlie petition of Richard Ross and others, of Thames. , “As this petition has now been presented to Parliament on four separate occasions, and a favourable recommendation given each time, will the Prime Minister, in view of the fact that some of the petitioners are in urgent need of financial assistance, inform the House as to the Government’s intentions? - ’ he asked. _ . Replying on behalf of the -Prime Minister, the Hon G. W. horbes, Minister of Lands, stated that the position was that during the war the ' export of gold from New Zealand was restricted at the instance of the Imperial Government. All gold production in -the Dominion was held on behalf of the Imperial Government, and arrangements were made for its transmission in accordance with directions received from the Bank o England. The Bank of New Zealand merely acted as agents for the purchasers on a commercial basis, and any profits on the increased pric-e ot gold were not secured by the Blink of New Zealand. The Imperial Government used the tHd to strengthen the Empire’s resources and to case foreign exchanges during the war. No question of profit as a result of these national necessities could . arise. “I may add,” said the Minister, “that representations were made to the Imperial Government on behalf of these petitioners, but without effcc-t, and I -see no indication that their claims can -receive' further consideration.”