GOLD PURCHASE PLAN.

Manawatu Standard, Volume LIII, Issue 284, 28 October 1933, Page 2

GOLD PURCHASE PLAN.

EFFECTS IN UNITED STATES. 1 Received October 27, 1.35 p.m. WASHINGTON, Oct. 26. The price of newly-mined gold was raised to 31.54 dollars an ounce, 18 cents above the first Treasury quotation yesterday and approximately 50 cents above the world price in London, where it had fallen since yesterday. The Administration further announced its intention to maintain a . steadily higher price for gold than is . available elsewhere and there is unlikely to be any decrease in price unless in the speculative markets who have a tendency to “run away.” ' No gold has actually changed hands and it is more strongly indicated that the purchase policy is only a-device to devalue the dollar, yet tire device did not work smoothly to-day, the dollar rising to 66.91 cents against the franc, which is approximately 1 j cents higher than the Treasury gold figure would make it. The gold purchase plan has also had the effect of minimising the dollar fluctuation against foreign exchange, the pound sterling, for instance, being quoted at 4731 cents;, or approximately what it was yesterday. The gold plan has likewise failed to continue to buoy up domestic markets as it had done since the first announcement. Leading stock in New York lost none to four points, gold shares dipping with the rest of the list. Wheat was off about two cents at Chicago, other commodities also reflecting the recession.