U.S. GOLD POLICY

Dominion, Volume 27, Issue 33, 2 November 1933, Page 11

U.S. GOLD POLICY

Currency War Danger HOPE OF FINANCIERS Anglo-American Discussions THE DOMESTIC MARKETS By Telegraph,—Press Assn.—Copyright. (Received Nor. 1. 7 p.m.) Washington, October 31. The price of gold was set at 32 dollars 12 cents or 1 dollar 7 cents over the London price when the pound sterling was quoted at 4 dollars .751 cents, at the opening of foreign exchange trading and 1 dollar 5 cents, over .London at the close of such trading. Word was being awaited from London concerning tlie AngloAmerican decisions on the United States Government’s intention to make gold purchases abroad before plans for such purchases are completed. The comparative steadiness of the dollar has strengthened the hope of the financial community that a currency war would be avoided, but the effect of the situation on domestic markets was not optimistic. Stocks settled down into a rut. but grains declined sharply, wheat dropping 2 3-8 cents, and rye. and • barley about 4 cents. The most notable effects of the Government’s gold policy, apart from the general uncertainty it has created, has been an increase in mining activities in the West, where abandoned properties are again being taken up for working, and a rise in gold-mining shares and a flood of fraudulent gold-mining stock which is finding gullible purchasers. The United States Bureau of Mining has warned the public against the resumption of some forms of mining as not likely to be profitable, despite the increased prices of gold. The extent of the revival, however, can be understood, when |t is considered that hydraulic gold-mining, which has long been prohibited in California, is likely now to be made legal agaim The prohibition arose out of the water impounding problem. ONLY ONE CLASS BENEFITS London, October 31. The “Manchester Guardian’s” City Editor declares that President Roosevelt is helping only one class, namely, speculators atid investors in gold shares, who are promising themselves a grand boom. FRENCH VIEWPOINT Paris, October 31. President Roosevelt’s action is Interpreted in financial circles as an attempt to force remaining gold standard countries off gold by creating insurmountable difficulties. DUTCH IMPRESSION Amsterdam, October 31. America’s action has created an unfavourable impression aiid is taken to indicate that inflation will follow. Gold purchases abroad are unlikely to be heavy, for this will be found to result in the heavy decline in the value of the dollar. , AUTOMOBILE CODE Request to Mr. Henry Ford WAGES AND HOURS (Received November 1, 7 p.m.). Washington, October 31. The National Automobile. Chamber of Commerce to-day notified the Ford Motor Company to submit the wages and hours report required by the automobile code, as the evidence of Mr. Ford’s compliance with one requirement of the code did not settle the manufacturers’ status in regard to Government tenders. Meanwhile, the City Council Finance Committee of Chicago to-day recommended the purchase of thirty-eight new Ford automobiles, no mention being made of Mr. Ford’s dispute with the National Recovery Act administration. AGRICULTURAL CODE Mid-Western States in Favour INFLATION OF CURRENCY (Received November 1, 10.30 p.m.) Des Moines, November 1. The Governors of five mld-Westem States and representatives of four others last night signed a report to President Roosevelt urging the forming of a National Recovery Act code for agriculture, fixed minimum prices for basic farm products, and inflation of the currency.