RETURN TO GOLD.

Star (Christchurch), Issue 17526, 1 May 1925, Page 8

RETURN TO GOLD.

EFFECT ON AUSTRALIA. BANKERS’ VIEWS. By Telegraph—Press .Association —Copyright Sydney “ Sun " Cable. (Received May 1. 9 a.m.) LONDON, April 30. The probable effect on Australian exchange of the return to the gold standard is arousing considerable interest in banking circles. Several of the leading Australian banks have been interviewed and the general opinion seems to be that the exchange rate of Australia will get easier. One bank declared that it should result in the lowering of the premium, either way, to a cost of a shilling on gold and about seven weeks’ interest. Bankers consider that the easing of exchange will not greatly influence the Australian trade, as the volume depends chiefly on the ability of the public to purchase goods, and the question of exchange does not arise; but the resumption of the gold standard and a reduction in the income tax are likely to improve world trade and increase the public spending power, benefits in which Australia would- participate. NEW ZEALAND EXCHANGE ON AUSTRALIA. By Telegraph—Press Association—CopyrlgTit Australian a-ud N.Z. Cable Association. (Received May 1, 12.35 p.m.) SYDNEY, May 1. Referring to the high exchange rates between Australia and New Zealand the “Sydney Morning Herald” says:— “If gold is procurable in New Zealand it will cost not less than 2 per cent to transfer it to Australia. In such a case a return to a rate of exchange approaching that between Sydney and Westralia would bo probable.” The “Herald” gives as a reason for the high exchange rate between the Commonwealth and Dominion the fact that goods taken to New Zealand from Australia, far exceed those taken to Australia from New Zealand. Practically Australia sent twice as much as she received. The paper adds that some .adjustment lias .been made through London, but it is insufficient to correct the exchange.