BANKERS PUZZLED

Evening Post, Volume CXVI, Issue 131, 30 November 1933, Page 16

BANKERS PUZZLED

DOLLAR MANIPULATIONS

London bankers have long ago decided that the project for managed currency, quite recently advocated in this country (states the "Daily Telegraph," London), is' quite impracticable, and they l are not convinced that it will work any more easily .in America than here. They are puzzled also as to the precise meaning of the' President's plans for creating a gold market in the United States. Any loosening of the embargo on gold movements may be taken as a sign ot grace, but it is by no means clear, whether Mr. Roosevelt has reached the point where he is willing to use the. vast stocks of gold in the country for export, with a view to holding any particular quotation of the dollar: Nor can anyone explain why, with Central Banking machinery in existence, in -the shape of the Federal Reserve system, the control of gold prices »ed movements should- be handed over to the Reconstruction Finance Corporation, which, after'all, is only an official handero'ut of loans to bolster up distressed institutions. '■■■■' _ ■ How dollar manipulation is going to be managed' is,' therefore, obscure. The only thing that remains is the goal to be aimed at, namely, higher prices, which at first gjflhe'e seems to connote exchange depreciation. .' ' . ".