AMERICAN GOLD POLICY

Press, Volume LXIX, Issue 21024, 28 November 1933, Page 11

AMERICAN GOLD POLICY

Questioned \ ~— WHY OFFICIAL RESIGNED ECHOES EXPECTED IN CONGRESS (r.viTZD rnr.ss association-r.Y r.i.Ecnuc ' TELF.GHAriI COI'VKIGMT.) (Received November 27, 8.20 p.m.) NEW YORK, November 26. The New York "Herald-Tribune" declares that Mr Dean Acheson's resignation from the post of UnderSecretary to the Treasury was forced because of his contention that gold-buying, through the Reconstruction Finance Corporation, was illegal. In a memorandum submitted to the President before his resignation, Mr Acheson construed the provisions of an act setting up the corporation as such as not to allow its securities to be exchanged for gold. Countering this, the corporation's counsel and the Attorney-General, Mr H. S. Cummings, submitted opinions declaring that the corporation was authorised to refinance itself through the sale of its securities. Thus the purchases of gold were within the law. It is expected that Mr Acheson s legal view will form the basis of a Congressional attack on Mr Roosevelt's policy, with possible revision of the Reconstruction Finance Corporation Act. REAPPEARANCE OF mi. MOLEY PRESIDENT SUPPORTED BRITISH ACTION QUOTED IN DEFENCE (deceived November 27, 9.30 p.m.) SANTA BARBARA (California), November 27. Dr. Raymond Moley, former head of the "Brains Trust," to-day defended Mr Roosevelt's monetary policy. He asked: "Someone has frifix the price of gold. Why should •/not be the United States?" He added: "For years the Bank of England fixed the price of gold and no one ever howled. Now that the President has decided to have the United States fix the price, why should there be any objections? "There was no complaint when England was forcing the pound down from 4 dollars M cents to 3 dollars 25 cents. Why shouM there be any complaints now that Mr Roosevelt has forced the pound back, regaining international trpde that was bein-» diverted to Britain by the decline of the pound?" CRITICS CRITICISED FORMER SENATOR DEFENDS POLICY NEW YORK, November 26. A Washington message states that former Senator Robert Owen, one of the framers of the Federal Reserve Act, denounced Mr Roosevelt's critics. He predicted that if the opposite course, that is continued deflation, were taken, recovery would be halted, the depression renewed, and there would probably be a "violent plunge into communism." PRICE MOVEMENTS ANALYSED RISE NOT COMMENSURATE WITH INFLATION NEW YORK, November 26. A comprehensive price survey declares that after a month of the gold-buying experiment the price level, based on an index of 100 commodities, has not increased anywhere in proportion to the increased price of gold. Actually it has declined by a fraction of 1 per cent., while the value of gold has increased 13.29 per cent., and the gold value of the dollar has decreased 11.72 per cent. The aver- | age price of 40 domestic bonds decreased 4.74 per cent.. Government securities dropped 2.91 per cent., while 10 foreign Government bonds were up 3.18 per cent.'

THE UNEMPLOYMENT SITUATION rOSITION MOKE SATISFACTORY (Received November 27, 5.5 p.m.) WASHINGTON, November 26. The American Federation of Labour estimates that the number ol unemployed in October wa.<?0,07(i,0U0, compared with 10,065,000 in September which, according to a statement by the federation, indicates that the National Recovery Act is keeping the employment situation under better control than usual at this time of the year. It is stated that unemployment during the depression years has usually increased by at least 450,000 in September and October, because of the seasonal decline in industry. report says, however, that tie President's Re-employment Administration has put 1,000,000 men into emergency work this month, while 3,000.000 more are expected to follow.