INFLATION PLAN

Dominion, Volume 26, Issue 183, 1 May 1933, Page 9

INFLATION PLAN

Adopted by U.S. Senate PRESIDENT’S POWERS Extension of Currency LIFTING OF FARM PRICES By Telegraph—Press Assn.—Copyright (Received April 29, 7.35 p.m.) Washington, April 28. After three weeks’ comprehensive debate the Senate passed the Farm Bill, to which President Roosevelt's inflation programme is an amendment. The amendment to the inflation plan to increase from WO million dollars to 200 million the amount President Roosevelt may ac cept in silver at 00 cents, an ounce in the next six months on war debts was accepted. The legislation is the most sweeping In character ever to go through Congress. Although action under nearly all the provisions is discretionary with the administration the Farm Bill vests extensive permissive powers in the President to extend America’s credit and currency by at least six billion dollars and places equally broad authority In the Secretary of Agriculture, Mr." Henry Wallace, to raise further the prices of basic farm commodities through levying processing taxes, by licensing fees, and through marketing agreements and controlled production. FLURRY ON MARKETS Stocks and Commodities DOLLAR SLUMPS HEAVILY (Rec. April 29. 6.35 p.m.) New York, April 29. Now York markets responded to the passage of the inflation and farm measures bv the Senate with wild price fluctuations, in the brief space of two hours, it being a half-day market, stocks, commodities, and speculative bonds soaring, and dollar and giltedged obligations tumbling. The volume of stock trading was 3,389.000 shares, the largest for any Saturday in three years. Prices closed at the very top gains, ranging two to six points. Wheat at Chicago was up 5 5-8 cents and other commodities on the markets of the nation took a similar course. . , The dollar slumped severely losing six cents against sterling and W points against the German maik, against the Dutch guilder, and 16 to ><■> points against other currencies. TO CHECK GYRATIONS Pegging Dollar Exchange EQUALISATION FUND , f New York, April 28. International banking circles have been giving serious consideration to the possibility that an equalisation fund might have to be established soon to maintain the stability ot the Lnited States dollar in foreign exchange markets. This conclusion has been arrived at on the assumption that the dollar wil not immediately be devalued, if at allDevaluation, it is stated, would have the effect of obviating the necessity of adopting any other measures. However if the dollar is not pegged It is likely that some sort of fund might be established to buy and sell foreign exchange in order to protect the dollar from wild gyrations, which would be disturbing to business in the opinion of certain authorities here., FRANCE TROUBLED Millions Lying Useless ORCHARDS AS BANKS (Received April 29, 11.33 p.m.) London, April 29. The "Sunday Express” correspondent in Paris says that France is m a precarious position. People are evadin'' taxes and have lost confidence in their banks, while British banks are thronged with French depositors. French farmers bank their money and it is estimated that a hundred millions of francs are lying useless in orchards and vineyards and more millions deposited in household France is obliged to borrow £<,0.000.000 in England. ■ Exporters wish France off the gold standard, but the Government is unwilling to part with the hist shilling of prestige. LOAN FROM ENGLAND French Prestige Suffers “BAD PIECE OF NEWS” (Received April 29, 11.33 p.m.) Paris. April 29. "France is in the hands of the English.” says “Figaro.” criticising the Loudon bankers’ loan. Paul Reynaud. ex-Minister of I* in flnee, regards it ns a bad piece of news for those who flattered themselves that the financial, influence of France wns a factor making for peace The Government was merely postponing the day of reckoning, lie added. A British banking group is negotiating a loan of £30.000,009 to the French Treasury at 21 per cent., repayable in six months, it is a private transaction and is not connected with loan equalisation. It is being made in order to counteract the pressure on the franc and to supplv funds when the slow in flux of tax returns necessitates shortterm borrowing.