MINING SHARES ACTIVE.

Star (Christchurch), Volume LXVI, Issue 20222, 5 February 1934, Page 1

MINING SHARES ACTIVE.

Strongly Opposed Movements Caused. British Official tvirsl««a (Received February 5, 12.30 p.m.) RUGBY, February 3. Commenting on the situation caused by the United States return to the gold bullion standard, “ The Times” City Editor says: “ This action has caused two strongly opposed movements, namely, a rush to buy gold in the cheaper markets of Europe and to sell it in the dearer markets of America, and, on the other hand, a fush to buy dollars and dollar securities. The second movement has been more powerful in its influence than the first, despite the plans for very large shipments of gold to America.” No Purchase of Francs. The writer mentions that there is at present no sign of the American Exchange Fund being brought into operation for the purchase. of francs and pounds to eliminate the premium of the dollar over the gold franc, which, so long as it remains, will induce gold shipments to America. These a-e being made by private institutions and not by the United States Government. The foreign exchanges market was again busy to-day. The outstanding feature was the recovery of sterling compared with leading gold currencies. The American dollar depreciated from the overnight rate of 4.904 to 4.934. Gold Going to U.S.A.

Interest on the Stock Exchange remained centred in the gold mining section to the exclusion of other departments, which remained quiet. Mining shares continue to move upwards, although the gold quotation to-day was Is 3d down at 13Ss 3d. Much gold is flowing to the United States and liners leaving to-day are carrying large shipments.