British Silver
p. 23 · Read in the full issue
Banks Allow Only Small Premium in Sydney.
ANEW Hebrides trader, desiring to trade with Australia, and get the benefit of the exchange premium, found himself unable to transfer a credit to Sydney by the usual means.
There is no direct bank communication between the New Hebrides and Aus tralia.
Our friend, therefore, collected £14 in British silver (being unable to get bank notes) and shipped it to his credit in Sydney, in ibelief that he would get the benefit of the exchange (25 per cent.). To his surprise he was credited with only £15 Australian —re presenting £1 exchange premium. He expected to receive at least £3 exchange premium.
He has sent us the “foreign exchange slip’’ he received from the Common wealth Bank, Sydney. It shows: 10 per cent, on £14 £1 8 0 Less Customs charges, cart age, etc 0 8 0 Balance £10 0 We took this up at once with the Commonwealth Bank; and we were curtly informed that the bank “never” allows more than 10 per cent, exchange premium on “foreign silver currency.”
Yet there are many people in Sydney who gladly would receive this British currency and allow 20 per cent, for it Then we wanted to know about that 8/- charge. The bank was not helpful, so we went to the Customs House.
There we were advised: “There is no duty or primage to pay on bullion or specie coming into Australia. The Cus toms charges shown on the exchange slip from the bank are Customs agent’s clearing charges, plus cartage.”
Messrs. Thos. Cook & Sons, Ltd., ad vised us that they would allow no more than 11¾ per cent, on such British silver —which means that they would make over 12 per cent, profit on it, less handling costs, if any. Yet such silver is in constant demand by people about to travel to Britain, who wull pay up to 20 per cent, for it, to avoid the bank transfer rate of 25 per cent.
In these circumstances, 'lslands resi dents who wish to establish credits in Sydney by shipping British silver should avoid the regular banking channels. If they have no other channel through which they may operate, they may communicate with Pacific Publications Ltd., who will endeavour to make suitable arrangements on their behalf.