SOUTH AFRICAN POUND

New Zealand Herald, Volume LXIX, Issue 21378, 30 December 1932, Page 7

SOUTH AFRICAN POUND

VALI E NOT DETERMINED

MINES RETAINING GOLD CHECK TO SHARE DEALING By Telegraph—Press Association—Copyright (Received December 29, 11.35 p.in.) LONDON, Dec. 29 The city editor oi the. Daily Exprftis says that the buying and soiling of goldmining shares between London and Johannesburg has been paralysed There Has been a boom in shares in Johannesburg, but. a temporary setback in London, where tie banks are unable to estimate the value of the South African pound. Tho decision of the mining companies not to sell gold to the Reserve Bank is natural, as the producers cannot be expected -to accept currency which is likely to depreciate. The South African mjnes may insist on being paid the present price of gold in sterling, which would bring the South African pound down to the lovel of sterling. The mines are not obliged to sell to the Reserve Bank, but can sell to the Bank of England or any other buyer. This will decide the value of tho South African pound.

South African banks in London are quoting the selling rate of tho South African pound at £69 12s 6d per £IOO sterling. This is tho same as last week. There are practically no buyers __ Great interest, was displayed on the London Stock Exchango in the South African developments. South African mining shares were marked down, but there was little selling. NEW GOLD POLICY UNCERTAINTY IN POLITICS PROSPECTS FOR COALITION CAPETOWN, Dec. 28 The Minister of Finance, Mr. N. C. Haveng.ii, explained to-day the purport of the Government notice relieving the Reserve Bank of its obligation to redeem notes in gold. "We are virtually off the gold standard," trie Minister said. "The banks will quote rates for exchange on the new basis. The circulation of gold internally ceases and the (Union is now similarly circumstanced to Holland, which is a gold country without gold as the legal tender internally.

"The position is disappointing, and there is no relief for primary producers for purposes of export." General Smuts, Leader of the South African Party, describes the position as "dislocated." Ho prophesies that "the ond is at hand," and appeals to his supporters to remain steadfast, implying that he is not prepared to follow Mr. Tielman Roos, in his attempt to force the Hertzog Government out of office.

"We can only wish him the best of luck," declared General Smuts, in referring to Mr. Roos, when addressing a crowded meeting at Gc.rmiston. General Smiits thought that there was such a combination of forces at present as might drive the Government out of power, and that there might in the future be a combination of parties. If there was, it should be on such a basis as would not in any way impair the strength of the South African Partv.

Mr. Roos was given a great reception at Johannesburg on his first public appearance &ince his recent resignation from the Bench, when he emphasised the need for a coalition, the elimination of racialism arid devaluation as essential factors for the future prosperity of South Africa.

He said that neither General Smuts nor General Hertzog could lead a coalition, and he added that if the former were prepared to throw in his lot with a coalition Government under someone who would swing both the Nationalist and South African Parties, lie would do a great service to the country. Mr. Roos virtually suggested himself as the new leader of a coalition Government, stating that it was impossible for General Smuts unaided to put the present Government out of power.