THE GOLD DOLLAR

Otago Daily Times, Issue 21992, 29 June 1933, Page 12

THE GOLD DOLLAR

—i «g» ' —_ DEMAND BY SHIPPERS GOODS IMPORTED FROM UNITED STATES. An unprecedented position has been disclosed in regard to meeting bills on goods imported from the United States. Some shippers, since the United States went off the gold standard, have sent forward bills for collection in gold dollars or the equivalent in paper dollars. The implication is that the shippers concerned are disregarding the depreciation of the dollar and seeking for payment at the previous gold rate. The Christchurch banks have had occasion to notice a number of cases. An importer in one case (says the Christchurch Times) refused to give value in gold dollars, as the shippers stipulated, and the documents were not handed over by the bank. When an indemnity was given by another bank the documents were lifted. It 'has not yet been ascertained whether the shippers will press for payment on the higher scale, as it cannot be to their future interests to do so. One bank official stated that either a friendly settlement must be come to between the parties or it would have, to be decided by law. Possibly it was a question whether the original contract stipulated definitely gold dollars. ... The position had not arisen previously and certainly was not adopted by shippers of any other country whose currency was depreciated. The cheapening of the dollar rate is being watched with interest by importers, although it is stated that there has been no noticeable increase in dealing with the United States as the result of the. more favourable terms of conversion"; The present selling rate of 4.14 dollars to £1 sterling is cheaper than at any time since Britain went off the gold standard in September, 1931. Actually the extent of depreciation since January has been more than compensated by the increase in the New Zealand exchange rate. The .banks measure the depreciation of the dollar and sterling in terms of the franc and the ratio of value of the gold dollar to the paper dollar is now about 1.2 to 1.