50-CENT DOLLAR

Dominion, Volume 27, Issue 70, 15 December 1933, Page 11

50-CENT DOLLAR

Stabilisation Level SENATOR’S DEMAND Inflationists Will Fight f j STRENGTH IN CONGRESS By Telegraph.—Press Assn.— Copyright. (Received December 14, 7.30 p.m.) Washington, December 13. Senator Thomas revealed to-day that he had been informed that the New York Federal Reserve Bank is negotiating with the banks of Eng“ land and France with a viqw to stabilising the dollar at about 6cents. .He immediately issued a statement denouncing stabilisation at any figure above 50 cents., and threatened an inflation flight m Congress if President Roosevelt agrees to the proposal. * Senator Thomas 'said a higbw stabilisation would produce a terrible situation and would probably result in the collapse of the President s recovery programme. He predicted that the various elements of the inflation group have a majority in Congress, but probably were not strong enough to override a Presidential veto. With the gold price unchanged the dollar showed new strength on the London market. The gold price on the London basis opening at a sterling rate of 5 dollars 3J cents to the £l, was 31 dollars 74 cents, . Meanwhile,, the gold-purchasing ptogramine is subordinate in immediate interest to the Budget preparations at the White House and the Treasury, the needs for continuing the public works programme and other relief undertakings requiring a continuous and even mounting outlay during the winter, aggravating the Budget problems In the foreign exchange market the dollar went to a new high in tne cur; rent movement of 65.35 cents in terms o f franc, which, with sterling, Commodities .weakened as the drop in sterling caused a setting in rubber and silver and futures in grams and other staples. Wheat was -J centh lower. United States Government bonds were flrm, but the general bond market turned easier, after eleven days of rising prices. , Stocks sagged irre D larly in a dull market. TALK OF MERGER Communication Agencies Washington, December 13. That the Government is making an Intensive study of the communications problem, with preliminary reports tending /toward the .creation of a merger ,of all private telephone, telegraph, and radio agencies under federal regulation, was disclosed to-day by the submission of the report of a Department of Commerce committee to President Roosevelt setting out three possibilities: — 1. The continuation of existing conditions. 2. The creation of monopolies In communication fields under strict Government regulation. 3. Government ownership of communications. The report favours the second possibility. ■ CHEAPER LIQUOR Beating the Bootlegger Washington, December 13. It is announced that' allocations for 5,595,000 gallons of liquor to be imported within the next four months have been granted. The aim is to destroy bootlegging by making liquor /heap, and at the same time to bargain with exporting nations to exchange the liquor for farm surpluses. The director, Mr. Choate, will not disclose the countries allocated quotas. It is understood that a plan is being considered to make immediately available large stocks of whisky in Canada, as the best solution for the. high price of spirits prevailing in the United States, despite the lapse of a fortnight since the repeal.