AMERICAN AFFAIRS

Hawke's Bay Tribune, Volume XXIV, Issue 10, 22 December 1933, Page 9

AMERICAN AFFAIRS

ATTACK ON DR. SPRAGUE Britain’s Dropping of Gold EXAMPLE TO BE FOLLOWED By Telegraph—Press Assn.—Copyright NEW YORK, December 20. The Speaker of the House of Representatives, Mr Rainey, at an Economic Club dinner to-night, devoted much of his speech to an attack on Dr. Sprague. He intimated that Dr. Sprague had handled Britain’s dropping of geld and was now trying to prevent America following a policy which had proved beneficial to Britain. “Th* Administration docs not propose longer to surrender its monetary policies to the dictation and control of the Bank of England,’’ he said. At a luncheon to-day of prominent Republican leaders, several of whom recently visited Mr Hoover, it was learnc dthat the ex President counsel led Bepublican Congressmen io refrain from attacking the Administration policies until “the errors of the economic programme’’ have accumulated. The Republicans admit so far that they are divided on the positive monet-' ary policy and other issues. With the price of gold unchanged and the dollar gaining in the foreign exchange, trading here in stocks, particularly certain specialties, suffered heavy losses ranging from four to ten points. The closing prices, however, were above the lowest of the day and the losses averaged approximately three points. The recent disclosures of pool manipulations of certain stocks caused a nervous market, which was also reflected in commodities, and generally the speculative clement was depressed. The dollar closed at 64.60, up .73. Sterling closed 5.09 J dollars, eft 4J cents. The franc was at 6.14 cents, A story of deflated rather than inflated prices through the operations of the Agricultural Adjustment Admin-

istration was told to Mr Wallace today by representatives of the cheese and butter industries. They complained bitterly that he had failed to support the market as he promised through Government purchases of cheese and butter. Mr Wallace issued a sharp ansiver, indicating that the Government felt that the industry had done little to regulate over-production, and could not stabilise profits indefinitely through Government buying.