OFF GOLD

Gisborne Times, Volume LXXIII, Issue 11956, 29 May 1933, Page 5

OFF GOLD

.ROOSEVELT’S DECISION

LEGISLATION TO BE INTRODUCED.

FOREIGN DEBTS PAYABLE JN ANY LEGAL TENDER.

(U.P.A. by Elec: Tel. Copyright) WASHINGTON, May 20-

dli'. Roosevelt decided to-ady that tho : United States should go off the gold standard by statute. Ho requested Mr. Steagall, chairman of the House Banking Committee, to introduce a resolution placing the United States off the gold standard by law. Mr’. Stoggall said tho resolution would repeal the Gold Standard Act. No bonds or obligations of the United States Government, and no obligations of any fonn would have to be paid in gold, or gold currency. When the measure- was enacted it would bo possible for foreign debtors to pay war debts to the United States in any legal money. It would make it unnecessary to devaluate the gold dollar under the Farm Relief Act inflation provisions.

BENEDICT A L TO CANADA

EFFECT DEPENDENT ON DOLLAR' INFLATION.

(U.P.A. by Elec. Tel. Copyright) OTTAWA, May 26.

The Government and financial circles here view as a beneficial step the proposal of the United States to go off the gold standard. It is .expected that tho action will make gold bonds held in. the United States payable in United States currency. Tho effect on Canada, with more than £50,000,000 due in New York this year, is dependent on the extent to which the United States may bo inflated and the relation of the Canadian dollar io United States funds. WASHINGTON, May 27.

Since President Roosevelt has officially dropped the gold standard by refusing to allow gold exports, there has boon much confusion regarding the payment of interest on Government bonds, pari ioularly those held abroad. Mr. Wood in has issued a statement explaining that, while a court has already uphold the Government's right to pay in "other lawful forms of money, ’’ it was desired that there should be clarifying legislation to prevent a confused legal construction in other jurisdictions. It is intended that all future obligations, both public and private, would not contain a gold clause. The House of Representatives* Banking Committee has approved the Administration Bill outlawing the "gold clause” of contracts and making all contracts, private and public, payable in legal tender monev.