GOLD FROM FRANCE

Dominion, Volume 27, Issue 35, 4 November 1933, Page 7

GOLD FROM FRANCE

American Government Begins to Purchase ASSISTANCE FOR BUDGET (Received November 3, 8.30 p.m.) London, November 3. Financial circles state there is no sign of America bidding for gold here, but Baris reports that the American Government began to buy French gold, using franc holdings, which action helps the new French Government’s policy, and will assist to balance the Budget. Warnings everywhere have been issued to the effect that if the Budget is not balanced without delay the franc will be attacked and will be unable to resist. VALUE OF DOLLAR Declines Against Sterling Washington, November 2. /With the* gold price set at 32 dollars 36 cents here and the London bullion quotation rising to 31 dollars 52 cents, the dollar was weak, declining to 4 dollars 85 cents against sterling in late trading, and also weakening against France, so that the dollar was worth only 64.23 cents in gold on that basis. Stocks on the New York Stock Exchange moved forward slowly blit persistently to-day. the leading issues finishing fractionally to two points higher. A further depreciation of the dollar against foreign exchanges encouraged the transfer of funds into commodities and .equities which would benefit directly from rising commodity prices, particularly petroleum, rubber, sugar, and mining shares. Gold and silver mining stocks, however, suffered from late sales for profit-taking, despite rising prices for both metals. Spot silver advanced to 40 7-8 cents an ounce, the highest since April, 1930. Wheat finished 2 cents higher. Plans for purchasing imported gold by the Government to-day, it was also understood, are being formulated to supplement the purchases of the domestic newly-mined metal. The Government hopes thus to avoid the necessity of direct dealings in foreign gold and exchange markets, leaving such to individuals choosing to ship gold here. It is understood this will also be paid for by the Reconstruction Finance Corporation- with uinety-day notes. . The United States Treasury may soon issue 11,900,000 dollars in silver certificates backed by silver received for last June’s war debt payments. An amendment to the farm loan law authorising acceptance of debt payments in this medium required that silver thus received be made the backing for the certificate issue. The process of assaying the metal received has just been completed. The next step would be the engraving of the certificates. Treasury officials on Thursday denied that this could lx? considered inflationary, as the certificates would be used in the normal course of business, replacing other forms of currency, as they were turned in at the Treasury for redemption. No statement was issued as to what would 'be the denominations of the certificates. PRESIDENT’S FAITH National Recovery Progress , Washington, November 2. President Roosevelt, In the midst of developing criticism of the National Recovery Act, to-day made clear that he felt that the recovery programme was progressing iu both its price-rais-ing and re-employment phases, the Secretary of Labour (Miss Perkins), having reported to him that the average hourly wages had risen from 43 cents to 51, while the average hourly workweek had declined from 42 to 36. The latest charts indicated that the prices the farmers had received for their products had increased from the index figure of 40 in tlie spring to 52 on October 11, while the prices paid by farmers increased from 68 to 77. The index figures are based on the level of 1926 with 100 parity.