PRICE OF GOLD UP

Poverty Bay Herald, Volume LV, Issue 17233, 12 April 1930, Page 10

PRICE OF GOLD UP

ADVERSE EXCHANGE COMMONWEALTH BANK’S RATE Cold in Australia is worth £5 5s per cut. more than tlm ruling rale. This is due lo the- adverse exchange, rate. Tim chairman of the. New Zealand Associated Hanks announced on Wednesday that, lie had received the following letter, dated. March 28. from the Royal Mint. Melbourne: "I have Hie honor to advise, that, in accordance with arrangements made liv the Commonweal Hi Bank, a premium on newly-won gold, deposited at- the mint for sale to the Commonwealth Rank, is at present being paid at the rate ot £5 5:: r cent. This rate is subject to Variation from time to time, according to the ruling selling rate for telegraphic transfer Australia on London, less estimated total costs of shipment to London, viz., about 25 per cent. It is hoped that the premium on gold, now payable in Australia will be sufficient to induce increased consignments io this branch.” Apparently, these arrangements have been made by the Royal Mint, Melbourne, with the Commonwealth Rank, with the object of increasing the production of gold in Australia. FURTHER ADVANCE ROSSIRLH. At Hie present time the selling rale for telegra-phic transfer Australia on London is £6 10s per cent., which is equal to the premium on gold of £5 5s per cent, payable by the Commonwealth Rank, plus the 25s per cent cost ;if shipment to London. In the event of the telegraphic transfer rate advancing, say, to £7 per cent., the premium on gold fought by the Commonwealth Bank would then be £5 15s per cent. Conversely, if the T.T. rate were lowered to £5 10s per cent., the premium on gold would be decreased to £M os oer cent. A cable message received from Sydney last Saturday reported that the Commonwealth Bank had arranged for further shipments of £8,000.000 in gold overseas. This makes a total of £24,000.000 oxnorleil from Australia since July, 1929. The general object, is to relieve the exchange position, but most of it is for interest obligations.—Dominion.