AVOIDING “GOLD” WAR

Greymouth Evening Star, 1 November 1933, Page 5

AVOIDING “GOLD” WAR

U.S.A. SEEKS PACT

BRITAIN TO CO-OPERATE

[BY CABLE —PRESS ASSN. —COPYRIGHT.]

WASHINGTON, October 30. The Government is anxious to avoid an unrestrained monetary war. The Administration has therefore sought for an understanding with Britain on the application of President velt’s plan to steady the exchanges and to increase commodity prices by buying foreign gold. The British delegate, Sir Leith Ross, has interrupted the War Debt conferences to talk with Governor Black of the Federal Reserve Board, and the Acting-Secretary of the Treasury. Mr Acheson. Meanwhile, exponents of varied schools of economic thought have predicted disappointing results from the President’s new gold purchasing plan. Nevertheless President Roosevelt’s assistants are now prepared to make gold purchases in the European markets by Wednesday at the latest. Regarding the quest for an understanding on the matter of gold purchasing, while none of the three (America, France and Britain) would disclose what is taking place, most observers have regarded it as self-evident that Britain would not sit idly by and watch the dollar further depreciated if an agreement could be reached whereby the two nations might work in co-operation. Many economists held that advantages would accrue, though France might be a potential sufferer, possibly to the extent of relaxing her already precarious holding upon the gold standard. Some of the economists have contended that if Paris abandoned the gold standard, the world situation would be more conducive to a stabilisation agreement, since all of the important nations would be on the same footing. Meanwhile American commodities and stocks reacted on Monday, after a rally earlier in the day.

THE LATEST PRICE

(Received November 1, 9.30 a.m.) WASHINGTON, October 31. Despite the slump in world quotaions, the United States, to-day, set he price of gold at. thirty-two dollars welve cents.

FINANCIERS’ OPINIONS.

LONDON, October 31

The “Guardian’s” city editor declares: Mr Roosevelt is helping only one class, namely the speculators and investors in gold shares, who are promising themselves a grand boom. PARIS, October 31.

Mr Roosevelt’s action is interpreted in financial circles as an attempt to force the remaining gold standard countries off gold, by creating insurmountable difficulties. AMSTERDAM, October 31.

The American action created an unfavourable impression and is taken to indicate that inflation will follow. Gold purchases abroad are unlikely to be heavy, for this is bound to result in a heavy decline of the value of the dollar.