BOOM FEARED IN AMERICA

Press, Volume LXXII, Issue 21973, 23 December 1936, Page 9

BOOM FEARED IN AMERICA

CURB ON EXPANSION OF CREDIT p i • TREASURY TO IMMOBILISE < NEW GOLD 1 1 CONTROL THROUGH FEDERAL < RESERVE SYSTEM ■ c 1 (united press association—copyright.) 5 . i (Received December 22, 9.30 p.m.) < WASHINGTON, December 22. \ As a means of curbing the widely- £ predicted boom after Christmas, < which, it is said, would rival that preceding the 1929 market collapse, , Mr Henry Morgenthau, jun., Secre- ( tary of the Treasury, has announced i a new policy by which the Treasury 1 henceforth will purchase outright ] and sterilise newly-mined and im- < oorted gold, which it will not allow j to become the basis of new bank i credits. Through the Federal reserve sys- ] tern the Treasury will issue its own , securities and the public will use , the proceeds to buy gold at the pre- i sent rate, but instead of issuing gold . certificates, the reserve banks will : set the metal aside in an inactive account, where it cannot form the ] foundation of credit. ;