BULLION MARKET HOAX

New Zealand Herald, Volume LXXII, Issue 22247, 23 October 1935, Page 14

BULLION MARKET HOAX

BOMBAY TRADERS' LOSSES GOLD AND SILVER EXPORTS LONDON, Oct. 21 The Bombay correspondent of the Times states that the bullion market was subjected to the most elaborate hoax in the city's history, presumably aimed at causing fluctuation for the benefit of the perpetrators. By the first post the managers of four local banks and other prominent business people, including brokers, received a letter purporting to be signed by an official of the Government's Commerce Department, accompanied by copies of notices drawn up to appear in the official Gazette, announcing a 10 per cent duty on exports of gold and simultaneously abolishing the duty on the export of silver. The bank managers communicated with the manager of the Reserve Bank, but neither he nor the Customs Department had received the information. Nevertheless, the rumour spread to the market, forcing down tho price of gold 12s an ounce and rocketing up that of silver before the Government's denial arrived. Jf» is estimated that traders lost £IOO,COO.