AMERICA’S CURRENCY

Evening Star, Issue 21620, 16 January 1934, Page 7

AMERICA’S CURRENCY

DOLLAR DEVALUATION TREASURY TO TAKE OVER NATION'S GOLD Freu Association —By Telegraph—Copyright WASHINGTON, January 15. After a two-hour conference with forty Congressional leaders, President Roosevelt announced that he would send a message to Congress to-morrow recommending that all the nation’s monetary gold be taken over by the Treasury, after which the gold content of the dollar would be devalued. The President declined to reveal the details, declaring that if his plans were disclosed in advance the French and British markets would have an advantage over the domestic markets.. The details are awaited with tremendous excitement, and the extent of the dollar devaluation is the chief topic of interest, speculation ranging between 50 and 60 cents.

PRESIDENT'S RECOMMENDATIONS _ _ FORTY PER CENT. CUT IN GOLD CONTENT. WASHINGTON, January 15. (Received January 16, at 9 a.m.) President Roosevelt, in a special message to Congress, recommended a minimum cut of 4,0 per cent, in the gold content of the American, dollar, and asked for nationalisation of the entire gold supply of the United States. Because of “world uncertainties” President Roosevelt refrained from fixing the exact value for the dollar. This time he mad© it clear that he was holding to his “ commodity ” plans.

Speaking of the future dollar backed by gold “ of such weight and fineness as may be established from time to time,” the President withheld any additional’ recommendation on silver, “ because I believe we should gain more knowledge of the results of the London agreement and of our other monetary measures.?’

A 11 MANAGED CURRENCY " WASHINGTON, January 15. . (Received January 16, at noon.) President Roosevelt’s long-awaited monetary message was presented to Congress to-day. In substance it recommits the Administration to a “ managed currency ” programme, with definite stabilisation still held in abeyance pending What the President terms an “ ultimate world-wide solution.” As predicted, Mr Roosevelt would have Congress authorise the impounding of about four billion dollars of the nation’s monetary gold into the Treasury for revaluation at a figure between 50 per cent, and 60 per cent, of the old statutory price—20.67d0l per oz—or, in other words, reduce the dollar value to between 50 and 60 cents.,

The profits accruing from the transaction are estimated to be about two billion dollars. This amount will not be added to the emergency appropriation fund, as many here predicted, but be' allocated to a special fund, some features of which are comparable with the British Equalisation Fund for the purchase and sale. of gold on foreign exchanges and Government securities to keep the nation’s currency at the desired parity with foreign exchanges. The President specifically requested that - the Treasury be given authority to handle such operations, terming the Reconstruction Finance Corporation’s handling. of . such functions as “ clumsy.” NEWLY-MINED .GOLD PRICE INCREASED. WASHINGTON, January 15. (Received .January 16, at noon.) The United States Treasury increased the price of newly mined gold by 39 cents per ounce to 34d0l 45 cents.