GETTING BACK TO PAR

Southland Times, Issue 19459, 26 January 1925, Page 5

GETTING BACK TO PAR

THE RISE IN STERLING. NEW HIGH LEVEL REACHED. AMERICA SENDS GOLD TO AUSTRALIA (By Telegraph—Press Assn. —Copyright.) (Australian and N.Z. Cable Association.) NEW YORK, January 23. Sterling has reached 4.80 dollars to the £l, which is a new high level since 1915. Buying by two prominent banks was the chief factor in the advance, which is the direct result of the optimism felt here and abroad on the early return of sterling to par, coupled with “bullish” statements by the heads of various British banks and the fact that the Money Order Department of the United States Post Office started on January 22 to convert postal orders for £1 at 4.87 dollars. Besides the big banks, the buyers included many large British institutions and individuals, who early in 1924 transferred their liquid wealth from England and found refuge here, during the political stress, in American bonds and stocks; also importers’ and exporters’ concerns representing British investors, institutions and speculators. It is believed that sentiment as much as anything has also contributed to the higher prices. ANOTHER RISE. LONDON, January 24. (Received January 25, 5.5 pun.) Advices from New York stated that sterling has again advanced, touching 4.804 dollars. GOLD FOR AUSTRALIA. AMERICAN SHIPMENTS COMING. PROFITABLE TRANSACTIONS. NEW YORK, January 25. (Received January 25, 11 p.m.) It is announced that the Equitable and Eastern Banking Corporation is shipping 550,000 dollars in gold and the Seabord National Bank is shipping 500,000 dollars in gold to Australia. Neither concern would disclose the consignees. The assistant cashier of the Seabord Bank (Mr Von Heimart) remarked: “It is probably being sent to a Sydney bank. There is no special trade interest in the shipment except that the Seabord Bank Calcutta’s consignment will be a profitable business deal.” The Equitable Bank stated that their shipment was purely an exchange transaction, pointing out that the Australian pound was now at a premium over the English. In the rectification of balances, Australia was unable to obtain gold in England, thus completing the transaction through New York, where gold is plentiful. A shipment of gold to Australia was also made last week, the peculiar exchange situation making such consignments profitable for the first time in recent history.