POUND AND THE DOLLAR

Evening Star, Issue 21503, 30 August 1933, Page 7

POUND AND THE DOLLAR

MR MONTAGU HODMAN IN AMERICA CONFERENCES WITH GOVERKMEHT Press Association—By Telegraph—Copyright. NEW YORK, August 28. Mr Montagu Norman (governor of the Bank of England), after opening a series of conferences with Government officials at Hyde Park, stayed for an hour or more, but did not engage the President in private conversation on international financial xnattei's, his visit being purely social. Although Mr Norman lias kept the nature of his business secret, it is reported that he suggested the advisability of pound and dollar stabilisation, which the American officials again tentatively rejected pending the outcome of the domestic recovery policy. VALUE OF GOLD NOT LIKELY TO FALL. LONDON, August 29. The ‘ Financial Times ’ in a leader expresses the opinion that gold is likely to retain its value even if some of the European States are forced off the gold standard. Though it discounts the fear that France may abandon gold, 1 The Times ’ adds: “ While suspension of the gold standard tends to limit tho supply the demand is maintained, which does not look as if further suspensions will necessarily be a prelude to a fall in price.” DEAL IK SOVEREIGNS SIX THOUSAND SOLD. LONDON, August 29. A firm of London bullion brokers paid a man apparently from overseas £9,000 for 0,000 sovereigns, which arc believed to have been his savings for years. GOLD “ BOOTLEGGERS " PAYING HIGHER THAN GOVERNMENT PRICE. PHILADELPHIA, August 29. (Received August 30, at 9 a.m.) “ Bootleggers ” achieved what the Federal Government failed to do in establishing a free gold market by paying a premium price for refined gold, which was nearly 50 per cent, higher than the American Government’s price. This astonishing disclosure came from Mr Ross Barrett, head of the gold crucible service, in a complaint to the National Metals Committee, which transmitted it to President Roosevelt. Mr Barrett stated that one “ bootlegging ” syndicate had been handling gold valued at 1,000,000d0l a month, purchased at prices higher than the Federal mint pays. NEW GOLD ORDER SALES OF NEWLY-MINED METAL ALLOWED. NEW YORK, August 29. (Received August 30, at 10 a.m.) A message from Hyde Park (New Jersey) states that President Roosevelt to-day authorised the Secretary to the Treasury to receive on consignment for sale," subject to such rules as he may subscribe, gold recovered from natural deposits in the United States. At the same time tho President tightened the regulations against hoarding to safeguard the new gold order. By lifting the embargo to permit sales of new-mined gold President Roosevelt gives the United States miners an opportunity for the higher prices prevailing abroad. ' News of President Roosevelt’s lifting of the gold embargo to permit sales of newly-mined metal at higher world market prices was followed by a swift rally in gold mining shares on the Stock Exchange.

[On the authority of the ‘ Gold ’ Supplement issued by ‘ The Times ’ on June 20, the United States output of gold increased from 2,197,127 fine ounces in 1927 to 2,507,800 fine ounces last year. During this period gold miners in the U.S.A. received no advantage from any gold premium. Apparently they have not received one since, for the article states: “ To-day the United States is off the gold standard, and the mining Press of the West is busy discussing what the future trice of gold may be. Hitherto the fine ounce has been worth 20.G7d01; now the estimates are between SOdol and 40dol per lino ounce; but until President Roosevelt’s policy in regard to the gold value of the dollar is known, it is premature to discuss the question any further than to say that a very considerable premium is assumed in gold-mining circles to bo assured. There seems little douH tl>- +

States production of gold this year will show a very substantial increase. Something in the nature of a gold boom '*as been in progress in the West for some time _ past, more particularly in California, Colorado, Idaho, Oregon, South Dakota, and in the ’hillipmes.”]