THE AMERICAN DOLLAR

Evening Star, Issue 21636, 3 February 1934, Page 18

THE AMERICAN DOLLAR

PRESIDENT RMSEVELT’3 POLICY RISE IN GOLD FOLLOWS (British Official Wireless.) Press Association—By Telegraph—Copyright, RUGBY, February 2. (Received February 3, at 2 p.m.) Commenting on the American estab* lishment of a bullion standard, ‘ Thai Times ’ expresses the view that the immediate effect is likely to be a loss of gold from the gold -countries ;to the United States. This, it thinks, is the inevitable outcome or the under-valua-tion of the dollar, which arises from the fact that the rise in American prices has been insufficient to offset the depreciation in the dollar. It becomes clear that the President is determined to stabilise the dollar at not less than, -the figure. Confidence will bo recreated 'in those ‘ quarters where hitherto it has been lacking. The devaluation of the American dol* lar to 59.06, and: fixing the new price, for gold at 35d0l per ounce, which in.; effect marks the return of the United, 1 States to "old by establishing interns-! tional gold bullion standard continuei the dominating factor in the city. The outstanding. event to-day -was, , the rise in the price of gold in the London bullion market''by 4s' to the unprecedented price of £6 19s 6d per oz, which' -has greatly stimulated the market in gold mining shares. , -