HOMEWARD BOUND

Wanganui Chronicle, Volume 75, Issue 111, 13 May 1932, Page 10

HOMEWARD BOUND

FOREIGN OWNED MONEY. Money which has been held in Aus tralia for twelve months past or more is now being remitted to its owners abroad, states the Sydney Herald ot last week. The indications arc given in the last two returns of the Common wealth Bank. Usually the week which includes the 15th of any month shows an increase of £2,500,000 in London funds, and an increase of about the Australian value of that sum in deposits. This is the sum of London money which the trading banks from their acquirement of London bills sell monthly to the Commonwealth Bank under the exchange pool credits scheme in aid of Government’s requirements. But last week in place of an increase in London funds there was a slight decrease and also a slight, decrease in deposits. This week the bank return shows a decrease of £1,883,(100 in Loudon funds, and a decrease of £2,378,285 in deposits. The Commonwealth Bank has sold in the past two weeks at least, £4,300,000 of London exchange to the banks who have required it for remittance on their customers’ account. Much oil and picture money has been accumulating here, the owners abroad awaiting what they regarded as more favourable exchange conditions for remittance abroad. The events of the past fortnight have convinced them that there will be at least no lowering of the exchange rate for some time, and so they have determined to have the money sent to its proper domicile rather than risk a further rise in the rate of exchange.