THE CORPORATION ASPHALT CONTRACT.

Otago Daily Times, Issue 17876, 5 March 1920, Page 2

THE CORPORATION ASPHALT CONTRACT.

TO THE EDITOR. Sir,—l notice in this morning's Daily Times that the corporation has entered into a contract to supply Trinidad asphalt with ' Messrs Chambers and Son,, and Messrs A. and T. Burt, covering an expendiutre of some £28,000, on which it will have to pay an adverse exchange in the United States of eome £8000. This is an enormous amount to pay, and, naturally, would increase the value of constructing the city roads. As a ratepayer, I would like to see this exchange saved, and I am satisfied this could to done and quite easily, providod the council knows, how. I should have thought that its bankersor some business man on tho couinbil would, have furnished this information. ■ • I would suggest that the town olerk ap-' proach the corporation's banker, or, failing him, a licensed gold buyer, and authorise either the one or the other to purohase, say, some 5000oz to 6000oz of gold at a price, say, of £4 15s or £5 an oz for. assayed standard gold, and authorise this gold to be shipped through the bank to either New York or San Francisco, where it would be sold in the open market at full market value, which, according to cabled _ adivices from both London and New York, is a'bout £6 to £6 5s per ounce. This would provide the dollars needed in America at par, and would save the adverse exchange. The bank, of course, would charge the .usual rate for suoh a transaction. This, I believe, is 1 per cent, up to 500oz of gold, £ per cent, up to IOOOoz of gold, and, by arrangement, over IOOOoz. Further, about Is 3d per oz would be required to oover insurance and freight. I believe the gold mining companies would sell right out at £5 for assayed standard gold rather than instruct the banks to ship for them, as thev would have the •use of the money at once, without pajing interest on advances.—l am., eto., A. Mobetcson. Dunedin, March 4-.