THE PREMIUM ON COIN

Otago Daily Times, Issue 21994, 1 July 1933, Page 5

THE PREMIUM ON COIN

TO THE EDITOR.

Sir, —The attempt of men to take silver coins out of: New Zealand in order to make-the profit of 25 per cent., which is realisable ; owing to; sterling being at a premium in this country, turns, one’s thoughts to other and much larger game, who are ' attempting -to secure the same kind of profit in, a, much larger way.; The speculators who are buying bonds which have been domiciled in New Zealand and are transferring them to London to secure the premium are_ acting within the, law, but, morally,., their offence is exactly the same as that of smugglers of silver. The action of the banks in attempting to get a premium, on, the monetary gold field by them conies under tbe same category. Gold to the amount Of £1,300,000 (not commodity, but monetary gold) is believed to have been' exported by the banks during the last year. What became of the premium on this gold? It would be interesting to know if the banks retained it. Then there is the Reserve Bank Bill. In this provision is made .that in the event of gold being exported, the share of the premium to be returned to the banks is to be decided by arbitration. Why should the banks get any premium, or any more consideration than the persons who are said to have desired a premium on their silver?. The latter owned the silver in a more complete sense than the banks own the gold,. because the latter have a duty to their depositors. Truly the law at present catches the sparrows and allows the vultures to escape.—l am, etc* , • ' James Beoo.