Authorities Hold Back for High Price of 139/10d.
London, Feb. 17. For the first time since last Novem. ber, gold valued at over £1,000,000 changed hands at to-day's fixing.
Bullion brokers in London were not surprised as the volume was merely a reflection of the recent weakness of the dollar and, to a lesser extent, the franc. Some comment, however, was aroused by the attitude of the Exchange Equalization Account, which supplied the bulk of metal required.
In this connection, it is noted that bidding for gold this morning began at 139/9d. per fine ounce and then increased to 199/9/4d, but it was only 139/10d. that the authorities met the demand fully. These tactics gave rise to the belief in some quarters that the authorities are at present ignoring the high premium of the price of London gold over the American dollar parity.
Because the authorities have at their disposal the whole of the South African output, together with occasional shipments of Russian gold, the opinion is expressed that, even if the London price were to reach a level at which shipments from New York would be profitable, it is possible that such shipments would not materialize. Consequently, the present attitude of the British authorities would appear to be: "We have plenty of gold, but, if you want it, you must pay for it."—Reuter.
Paris, Feb. 17.
Comm. & Southern (ord.) $6 cum. pfd. Consolid. Edison puo Consolid. Oil Continental Can Continental Oil Corn Products Curtis Wright (com) Delaware & Hudson Delaware, Lackawanna Deere Ca.
Distillers Corp, Seagrams Pont de Nemours Aircraft
Eagle Picher Lead Elec. Boat Ca.
Elec. Bond & Sh.
The weekly balance sheet released by the Banque de France reveals no change in the gold reserve.
Notes in circulation declined by about Frs. 800000000 while Depositors current accounts increased by Frs. 654,000,000.
No notable change is shown in the gold coverage ratio, which increased to 48.39 per cent. from 48.32 per cent.—Havas.
Text read from the printed page and cleaned; old type leaves the occasional error.