AMERICAN DOLLAR

Hokitika Guardian, 11 November 1933, Page 5

AMERICAN DOLLAR

AT LOWER LEVEL

- MR ROOSEVELT’S INTENTION.

United Press Association —By Electric Telegraph—Copyright.)

(Received, tin’s day at 11.10 a.ra.) LONDON, November 10. Tbe “Daily Telegraph's” city editor says the general belief is tnat Mr Roosevelt will force the dollar, which is now at the lowest since September, 1914, to still more depreciated iee\ is, with the franc "weakening simultaneously owing to distrust, of the French financial situation. Money from America is pouring into London. The Chancellor’s .statement m the Commons that the pound will be kept independent of the currency of any other country has given satisfaction in the city. RISE IN COMMODITIES RESULTS EFFECT OF AMERICAN POLICY (United Pre&s Association—By Electric Telegraph—Copyright.) NEW YORK. November 9. The gold value of the dollar has to-dny been further driven doivn by almost two cents to 61 .78 cents, ha against foreign gold currencies, and to 62.35 cents on the basis of Washington’s gold price of 33.15 dollars per ounce.

i Thus, for the first time since the U.S. Government’s gold purchasing policy began, tho value of the dollar abroad is lower than it is at Home. This is the cause that is assigned for excited movements that have occurred on the exchange market. There was a considerable flight of American capital, through the purchase of American securities here, and their sale in London. There also were withdrawals' of foreign balances from America to London.

The dealers have reported that some persons have even been buying the blocked currencies of South American countries in an effort to flee from the falling dollar. Metal, petroleum, rubber and other commodity stocks on the Stock Exchange rose one to four points in British trading, any re-action occurring only towards the close, on profit tak-

' nig. ;• Wheat was up four cents. Silver rose one cent an ounce to 42 7-8, this being a new high level. Cotton rose by 125 cents per bale. THE DOLLAR AND STERLING RUGBY, November 9. Asked what steps he proposed to take to prevent the pound sterling rising above the dollar parity, Mr Chamberlain said bethought the more correct description would be that the dollar had fallen below parity with the pound. The circumstances in which this had .'happened were weR known. The general policy of the British Government was to retain for the present the independence of sterling, as had been explained on sevral occasions, particularly in the resolutions approved by the Empire delegation, at the conclusion of the World Economic Conference.