BRITISH CO-OPERATION SOUGHT

Dominion, Volume 27, Issue 32, 1 November 1933, Page 9

BRITISH CO-OPERATION SOUGHT

America Anxious to Avoid Monetary War APPLICATION OF ROOSEVELT PLAN United States Officials Confer With Sir F. Leith-Ross i By Telegraph.—-Press Assn.—-Copyright. (Received October 31, 7 p.m ) Washington, October 30. Anxious to avoid an unrestrained monetary war, the Administration sought an understanding with Britain on the application of President Roosevelt’s plan to steady exchanges and increase prices by buying foreign gold. Sir Frederick Leith-Ross, chief British delegate to the War Debt Conference, interrupted the debt discussions to talk with the governor of the Federal Reserve Bank Board (Mr. Black) ant] the Acting-Secretary of the Treasury (Mr. Acheson). While none of the three, would disclose what was taking place, most observers regarded it as self-evident that'Britain would not sit idly by and watch the dollar further depreciated. If an agreement could be reached whereby the two nations could work in co-operation, many economists held that advantages would accrue, though France might be a potential sufferer, possibly to the extent of relaxing her already precarious hold upon the gold standard. Some economists contended that if Paris abandoned gold the world situation would become more conducive to a stabilisation agreement, since all the important nations would be on the same footing. Meanwhile exponents of varied schools of economic thought predicted disappointing results from the President’s new gold purchasing plan. Nevertheless, President Roosevelt’s assistants are prepared to make purchases of gold in European markets by Wednesday at the latest. « Commodities and storks reacted on Monday after a rally ea'ly in the day. '

GOLD PRICE RAISED The President’s Objective COMMODITY MARKETS Washington, October 30. The United States Government on Monday raised the price of gold to 31 dollars 96 cents, 47 cents above ths day’s quotations in the world market?. President Roosevelt is prepared to carry the price higher as a means of fortifying the commodity price-raising drive against foreign influences, intentional or unintentional as those influences might be. It was the obvious objective of the President through this step to increase, even to control, the world price of gold. He is apparently convinced that a constant rise in gold prices would stimulate a similar movement of commodities, his week-old move to bring higher commodity prices through the purchase of United States gold having alone proved a failure. OPINION IN FRANCE Aims of the Roosevelt Policy . Paris, October 30. Financial circles regard president Roosevelt’s policy as an attempt to force tlie gold bloc to abandon the gold standard.

DROP IN THE DOLLAR Uneasiness in New York STOCK MARKET REACTION New York, October 30. With the domestic gold price set at 31 dollars 96 cepts, against the London price of 31 dollars 40 cents to 31 dollars 52 cents, depending on the quotation of sterling, and with the announcement of an impending gold purchase abroad, the dollar dropped as much as 10 cents in exchange transactions to 4 dollars 82 cent? against sterling, but the domestic markets were not favourably affected. Stocks turned weak in late trading, and losses replaced early gains on a short-lived flurry of strength. Important issue? dropped 2 to 6 points, and Government bonds weakened in a reflection, of the uneasiness over the Government’s policy. Commodities also lost all .or part >f their early advances. DOLLAR IN LONDON Sharp Fall Recorded London, October 30. The City immediately reacted to President Roosevelt’s declaration, ami the dollar fell sharply, while gold shares, including Australians, advanced.