GOLD CLAUSE DECISION

New Zealand Herald, Volume LXXIV, Issue 22671, 8 March 1937, Page 7

GOLD CLAUSE DECISION

PROTECTION CANCELLED UNITED STATES LOANS DEPRECIATION OF DOLLAR Of the results of the economic depression one of the most important from the point of view of investors has been the legislative interference with contractual rights in relation to interest and dividend rates and repayments of capital, states the Melbourne Argus. In 1933, by a resolution of Congress, the gold clause in United States bonds was cancelled, and this action, coupled with the depreciation of the dollar, has caused complications to arise in connection with the repayment of money borrowed by other countries in the United States.

An important decision was delivered recently by the House of Lords 011 an appeal regarding the question of the repayment of the British 20-year 5i per cent, gold bonds, which were issued in the United States in 1917, and fell due for redemption on February 1. The point at issue was whether holders of the bonds were entitled to receive the equivalent of the same gold dollars which they subscribed to the loan or the present depreciated dollars, the gold content of which has been reduced bv 40 per cent. In the first Court in which the case was heard it was held that the British Government need payonly in depreciated dollars. The case, was then taken to the Court of Appeal, which reversed this decision. The House of Lords has now confirmed the decision of the first Court. It reached its decision on the ground that the liability of the British Government was governed by the American and not by the British law. As American law has released debtors from the protection of the clause the bondholders have lost their case. The total of Australian loans redeemable in New York is £45,260,000. The first redemption or conversion will be that of a 7 per cent Queensland loan of £1,844,000, which falls due in 1942.

DAIRY PRODUCTION DECREASE IN MANAWATU UNFAVOURABLE WEATHER [BY TELECRAFH —PRESS ASSOCIATION] PALMERSTON NORTH, Saturday It is anticipated that the final figures of dairy production in Manawatu this season will show an all-round decrease. One factory manager stated that month by month since the season opened in July a slight decrease in output by comparison with the previous year was shown until January, when a small increase was recorded. February production was stationary. Exceptionally cold, wet weather is blamed for the decrease, the growth of feed this season not being nearly as good as at the corresponding period last season. There will be no second Hush of production as was the case last year.

BAY OF PLENTY COMPANY HIGH AVERAGE GRADID [BY TELECRArH —OWN' CORRESPONDENT] TE PUKE, Saturday Butter from the Bay of Plenty Dairy Coin pant - , Te Puke, for the month of February graded all finest, the average grade being 94.23 points. The premium for February butter, grading 94 points and over, amounted to £365 over the guaranteed price for finest, making the total for the season to date £I7OB. MINING NEWS YIELDS OF COMPANIES ALEXANDER OUTPUT Gillespie's Beach (South Westland). —lo9oz. for 126 hours. Waipapa Beach (Southland). —6oz. ISdwt. for 105 hours. Maori Gully (West Coast). —370z. 7d\vt. for 133} hours. Nemona (West Coast). —960z. for 182 hours and 16,000 yards. King Solomon (Gore). —Last week, 7oz, lodwt. Worksop Extended (West Coast). — Last week, 630z. for 135 hours and 12,600 yards. Alexander (Beefton). —Return for February, January figures in parentheses: —Battely department: Crushed, 400 (425) tons of ore for 2220z. 17dwt. (2020z. 2d\vt.) melted gold. Cyanide department: 258 (310) tons, of sands treated for 620z. 17dwt. (61oz. ldwt.) bullion. Total estimate value at 145s a line oz., £1975 (£1800). In addition 8.7 (8) tons of concentrates were saved, valued at £245 (£232). Mossy Creek (West Coast).—2loz. Bdwt. for 134 hours and 9000 yards. MOUNT MORGAN RETURN A cabled report of Mount Morgan production for the four weeks ended March 3 has been received by the Stock Exchange Association as follows:—Ore mined, 38,870 tons. Ore treated: Sulphide, 25,000 tons, oxidised, 12.621 tons. Estimated production: Copper, 135 tons, gold, 36000z.

NORTH BROKEN' HILL LODE North Broken Hill, Limited, New South Wales, has advised by cablegram that the width of ore proved by the diamond drill bore from the plat on tlie 2300 ft. level is 151 ft. EARLY START AT NOKOMAI The Nokomai Gold Mining Company, Limited, reports that the construction of the steel pontoon, 30ft. long and 25ft. wide, for tho gravel pumps, is completed. Top stripping has already been commenced in anticipation of the starting of the nefc machinery at the end of the month. PROGRESS AT SKIPPERS A report issued by Skippers, Limited (Central Otago) states that since the last paddock was completed in January for the return of 87oz. the work of preparing further ground has been carried on. The weather has been unfavourable but the river has generally been at a lower level than for the previous months. A considerable area of beach has been cleared in tho vicinity of Laroux's Rock, and a new paddock started 60 yards downstream, after this rock had been blown away with tho hydrant. This paddock is now down to bottom, and as the recent heavy rains have greatly improved tho water supply better progress should be made to complete the first section, and an early wash-up can be expected, WORLD'S GOLD PRODUCTION Preliminary estimates place the world's gold production during 1936 at 35,000,000 fine oz., compared with 30,984,0000z. in 1935. The increase is the largest annual increment ever recorded. The figure includes a provisional estimate of 7,350,0000z. for Soviet Russia, which exceeds that of the previous year by 1,519,0000z.