MILLIONS IN THE AIR

Wanganui Chronicle, Volume LXXXIII, Issue 19737, 5 January 1927, Page 3

MILLIONS IN THE AIR

AVIATION HELPS BANKING SWIFT CARRIAGE OF GOLD Speaking in London last week Sir Samuel Instone, chairman of the Tnstone Shipping Line and a director of Imperial Airways, Ltd., had some interesting things to say in regard to civil aviation. He expressed the opinion that the true benefit of civil aviation would be felt more on tho longer routes rather than on shorter journeys. He said that civil aviation had brought about an extraordinary state of affairs in regard to banking. Last year £10,000,000 worth of bullion had been carried across the Channel. Owing to the speed with which it was transported, the saving in interest sufficed to pay not only for the cost of transport, but for the insurance* 1 as well. Sir Samuel mentioned incidentally that the Croydon aerodrome was the most perfectly equipped in tho world. Tho movement of gold from one country to another takes time. But whatever its duration the gold, during transit, remains “dead”—that is to say, it is not earning interest. The loss involved in that way is considerable when heavy quantities are being moved by present methods, and charges levied by banks for transfers of the metal are based in paft upon that expectation of loss, which, of course, has to be borne by tho person making the transfer.

By the use of aeroplanes the risk of actual loss of gold —its disappearance, which would result from a wreck at sea, or by theft—is naturally minimised, and the cost of insurance on that account should be reduced accordingly.