TUE BANK'S GOLD PURCIIASES.
There seems to be a good deal of uncertainty in the mind of the " man in the street " as to whether the gold purchased from time to time by the Bank of England is entered at the statutory price or at the present price for gold in the open market. Needless to say, there is a great difference
between these two points ; gold in the open market is over £7 an ounce, whereas the ordinary price for fine gold is just under 85s. per ounce. All the gold in the Bank of England, however, is calculated at the statutory price, so that if and when any devaluation of the pound takes place, the total of gold in the Bank of England ' will, of course, he written up considerably. Not that this will in- volve either profit or loss to the Bank of England, for the whole
of the profits of the Issue Department which is responsible for the gold holding goes to the Government. Incidentally, however, it is, perhaps, worth noting that While in the case of the United States the Governinent has already seized and used most of the profits arising out of the devaluation of the dollar, any profits which may accrue to the Government in this country through a devaluation of the pound are at present held in suspense and have not been used in any way.
A. II. D.
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