DEFICIT BECOMES SURPLUS

Press, Volume LXX, Issue 21081, 5 February 1934, Page 11

DEFICIT BECOMES SURPLUS

♦ — IMMENSE PROFITS FROM GOLD

U.S.A. TREASURY BALANCE

(UHITEO TRESS ASSOCIATION—BY ELICT.KIC TELKOBAI'H COPXBIGBT.)

(Received February 4, 7.30 p.m.)

WASHINGTON, February 3

A record yearly deficit of some 1,900,000.000 dollars last week was changed into a surplus of almost a billion dollars to-day, as the publication of the Treasury balance took into account the profit accruing from gold. This is merely a book transaction, as most of the profit is allocated to the stabilisation fund. The actual deficit remains and is sure to be increased in the months to come. The strength of the dollar on foreign markets since President Roosevelt's devaluation measure is causing some concern in official circles. It is understood that the President is determined to push it down to the parity at which he has fixed it. In some quarters it is said that another devaluation will be necessary. This would make the de facto parity of the pound to the dollar a ratio of about 6.08 to one.

WAR DEBT PAYMENTS MEASURE TO PROTECT U.S.A. WASHINGTON, February 2. The Roosevelt administration on Friday appeared to be ready to apply pressure upon delinquent European war debtors, pointing out that the United States dollar revaluation had wrought at least a theoretical reduction of 41 per cent, in the amounts owed. The sentiment apparently ruled strong in both the Senate and the House of Representatives favourable to some sort of retaliatory action and a measure denying further credit to nations behind in their war debts, introduced by Senator Johnson, of California, in the form of a bill, was passed in the Senate on Friday with administration support. The Johnson bill denies new credits to all nations delinquent in war debt payments.

LIQUOR ADVERTISEMENTS BROADCASTING FORBIDDEN IN U.S.A. (Received February 4, 6.30 p.m.) WASHINGTON, February 2. The Federal Radio Commission has warned radio stations that they are faced with the loss of their licenses if they broadcast advertisements of spirituous liquors.

ASSISTING EXPORTERS BANK TO BE ESTABLISHED (Received February 4, 6.30 p.m.) WASHINGTON, February 2. President Roosevelt has announced plans for the formation of a bank with the Reconstruction Finance Corporation funds, for the purpose of the partial financing of exports, particularly for Russia. Although the details had not been confirmed the capital is expected to total 300,000,000 dollars.

GUARDING AGAINST PROFITEERING (Received February 4, 6.30 p.m.) WASHINGTON, February 2. President Roosevelt, addressing the state directors of the National Emergency Council, advised them to be "hard-boiled" if they found any "little individual trying to take political advantage out of the relief of human needs."

NEW YORK STOCK EXCHANGE NEW YORK, February 2. Industrial and government bonds increased in value sharply to-day on an unexpected reduction in the Federal Reserve Banks' rediscount rate from 2 to H per cent., and reports of a heavy flow of capital into the United States, including much gold from France.

The dollar was somewhat stronger, this retarding the advance in stock exchange prices, which turned easy and irregular at the close. Commodities were also weak.