MOVEMENT OF GOLD

Poverty Bay Herald, Volume LV, Issue 17227, 5 April 1930, Page 5

MOVEMENT OF GOLD

AUSTRALIAN EXPORT SHIPMENT OF £8,000,000 (Elec. Tel. Copyright—United Press Assn.) SYDNEY, April 5.

The Commonwealth Bank has arranged for a further shipment of £8,000,000 in gold overseas. This makes a total of £24,000,000 exported from Australia since July, 1929. The general object was to reliove exchange, but most is being use*d for interest obligations. £1,000,000 ON ORONSAY SOME PROM NEW ZEALAND SYDNEY, March 25. When the Orient Royal Mail steamer Oronsay left Sydney for London yes- , terday'she had on board £1,018,300 in I gold and silver specie. Of this total, £1,000,000 was carried for the Commonwealth Bank, to meet interest obligations in London, and the remain-*' ing £18,300 had been transhipped from the Ulimaroa, which had brought it from New Zealand. . ~

It was learnt last night that, in addition to tho £17,000,000 worth of gold shipped by the Commonwealth Bank since last July, arrangements had been made for the shipment of a further £8,000,000, of which tho consignment on tho Oronsay was the first. All the gold has been taken from the bank's gold holding against tho note issue, which was substantially augmented recently by the acquisition of stocks from trading banks, under tho power recently granted to the Commonwealth Bank under an. amendment of the Commonwealth Bank Act. The ratio to gold to notes has been, and still is, much in excess ' of the legal requirement.,, The. chair-.. man (Sir Robert Gibson) has emphasised the policy of the bank to ship gold to London in order to meet oversea interest obligations. The ' present large shipments are rendered - necessary by prevailing financial conditions.

It is understood that the New Zea- • land shipment—a Comparatively small | .one —was made by trading banks inl the Dominion.