CURRENCY WAR DANGER

Hawera Star, Volume LIII, 2 November 1933, Page 5

CURRENCY WAR DANGER

AMERICA’S GOLD POLICY EFFECT ON DOMESTIC MARKETS. G ENER AL UNCERTAINTY CREATED. ( United Press Association —Electric Telegraph o*»py-igtit J WASHINGTON, Oct. 31, The price of gold was set at 32 dollars 12 cents or one dollar seven cents over the .London price when the pound sterling was quoted at 4 dollars 75 Scents at the opening of the foreign exchange trading: and one dollar five icents over London at the close of such trading. Word was Being awaited from London oonceirning the Ajnglo-American decisions on the United States Government’s intention 'to make <rold purchases abroad before plans for such purchases are completed. The comparative steadiness of the dollar has 'strengthened the hope of the financial community that a currency war would bo avoided, but the effect of the situation on domestic markets wets not optimisic. Stocks settled' down ' into ' a rut, but grains declined -sharply, wheat dropping 2 3-8 cents, and rye and barley about 4 cents. The most notable effects of the Government’s gold policy, apart from the general uncertainty it ha® created, has been an increase in mining activities in the West, where abandoned properties are again being taken up for working, and a rise in goldmining shares and a flood of fraudulent goldmining stock which is finding gullible purchasers. The United States Bureau of Mining has warned the public against the resumption of some forms of mining a® not likely to be profitable, despite the increased prices of goldThe extent of the revival, ho wove, can be understood, when it is considered that hydraulic gold-mining, which has long been, prohibited tn California, is likely to be made legal again. The prohibition arose out of the water impounding problem-

only ONE CLASS BENEFITS.

LONDON, Oct. 31

The “Manchester Guardian’s” Cityeditor declares that President Roosevelt is helping only one class, namely, speculators and investors in gold, shares, who are promising themselves a- grand boom. FRENCH VIEWPOINT. PARTS, Oct. 31. President Roosevelt’s action is in terp retted ini financial circles as ai. attempt to force remaining gold stand ard countries off gold bv creating insurmountable difficulties. DUTCH IMPRESSION. AMSTERDAM, Oct. 31. America’s action has created an unfavourable impression and is taken to indicate that inflation will follow. Gold purchases abroad are unlikely to be heavy, for this will be round to result jii the heavy decline in the value of the dollar. AUTOMOBILE CODE. REQUEST TO MR HENR Y FORD WAGES AND HOURS REPORT WASHINGTON, Oct. 31. The National Automobile Chamber of Commerce to-day notified the Ford Motor Company' to submit the wages T.n<l hours report required bv the automobile code, as the evidence of Mr Ford’s compliance with one requirement of the code did not settle the manufacturers’ status in regard to Government tenders. Meanwhile, the City Council Finance Committee of Chicago to-day recommended the purchase of thirty-eight new Ford automobiles, no mention being made of Mr Ford’s dispute with the National Recovery Act administration. CODE FOR AGRICULTURE The Governors of five mid-Western States and representatives of four others last night signed a report to President Roosevelt urging the forming of a National Rlecovery Act code for agriculture, fixed minimum prices for basic farm products, and inflation of the currency.