LEAVING GOLD STANDARD

Hawera Star, Volume LII, 29 May 1933, Page 5

LEAVING GOLD STANDARD

AMERICAN LEGISLATION HOUSE COMMITTEE APPROVES. BUYING WAVE ON EXCHANGE. PRICES SWEEPING UPWARD. (Unitea Press Association— By Electric Teiegrapn Copyright.) WASHINGTON, May 27. Since President Roosevelt officially dropped tlie gold standard by refusing to allow gold exports there has been much confusion regarding the payment of interest on Government bonds, particularly those held abroad. Mr W. Woodin, Secretary to the Treasury, to-day issued a statement explaining that while one court had alreadv upheld the Government’s right to pay in “other lawful forms of money,” it was desired that there should be clarifying legislation to prevent confused legal constructions in other jurisdictions. Mr Woodin added that all future obligations, both public and private, would not contain a gold clause. . _ , The House of Representatives Banking Committee to-day approved the Adm i nstraton ’s Bill, outlawing the ‘•gold clause” of contracts and marking all contracts, private and public, payable in legal tender money. In one of the largest buying waves for a Saturday session in years stocks at New York swept upward to-day, closing with gains ranging from one to eight points or more. Wall Street buzzed with the possibility of the establishment there of an open gold market, permitting gold to advance above the legal level. _ , Following the voiding of the gold clauses in public and private obligations, gold issues in a wild flurry of buying swept through virtually all categories, shares and commodities suTginEt up in sympathy. A Winnipeg message says the opening surge of buying sent wheat futures soaring into higher ground to-day, and at the close they maintained gams of or to 21 cents. ‘ May delivery closed at 65 cents, July at 653, October at 671 and December at 68). At Chicago wheat opened four cents higher and reacted slightly to close at 2} to 3 cents higher. Corn was from 1 to. If cents higher.