DOLLARS FOR GOLD

Otago Daily Times, Issue 27026, 10 March 1949, Page 8

DOLLARS FOR GOLD

SALES ON OPEN MARKET RELIEF SOUGHT FOR WEST COAST INDUSTRY PA GREYMOUTH, Mar. 9.

The Greymouth Chamber of Commerce will ask the Minister of Finance, Mr Nash, to state the Government’s objection to the sale of gold on the opeji market for dollar currency. This decision was made after a discussion on the severe blow to Westland resulting from the decline in gold dredging Which was said to be made uneconomic by the adjustment of the exchange rate and the compulsory sale of gold to the Reserve Bank.

The Reserve Bank advised the chamber that New Zealand was not a signatory of the International Monetary Fund Agreement. “The rules of the agreement do not apply directly to us, but the fund would have the right to object to the action of a member country if it bought gold from any source on the basis that it was inconsistent with the rules. Nevertheless, you will appreciate that the sterling area’s gold production is a potential source of dollars, a fact which must be taken into account in any consideration of available avenues for the disposal of gold.” Reference was made by members to the fact that all local bodies on the West Coast except one had united in an appeal to the Government to grant some relief to the gold-producing industry, and it was stated that there was available a “ proved avenue" in the dollar area for the disposal of gold at a figure sufficient to maintain the return obtained before the ‘adjustment of the exchange rate.