PRICE RISE DRIVE

Manawatu Standard, Volume LIII, Issue 286, 31 October 1933, Page 7

PRICE RISE DRIVE

THE PRESIDENT’S TACTICS. LIFTING GOLD QUOTATIONS. CONTROLLING WOULD SITUATION. (United Press Association —By Electric Telegraph.—Copyright.) Received October 31, 9.5 a.nr. WASHINGTON, Oct, 30. The United States Government on Monday raised the price of gold to 31 dollars 19 cents, which was 47 cents above the day’s quotations on the world markets. President Roosevelt is prepared to carry the price higher as a means of fortifying the commodity price-raising drive against foreign influences, intentional or unintentional as those influences might be. It was obvious that the objective of President Roosevelt was to increase through this step, or even to control, the world price of gold. He is apparently convinced that a constant rise in gold prices would stimulate a similar movement in commodities, which his week-old move to bring higher commodity prices through the purchases of United States gold alone proved a failure. CONFUSED OPINIONS. AMERICAN GOLD BUYING. THE PRESIDENT’S INTENTIONS. WASHINGTON, Oct. 30. Opinion concerning the meaning and intent to make purchases of gold abroad, as a second .step in President Roosevelt’s recently indicated financial policy, is as much confused to-night as it was over the previous step lie took a week ago, and demands are made on all sides that the President clarify the position. . Democratic politicians, such as Senator Thomas, said the step would bo tantamount to selling dollars and would have the desired effect. Senator Fess declared that the cheapening of the dollar abroad would probably permit foreign purchases of American goods at much reduced prices dn terms of foreign ourrencies, but would not raise domestic prices. Some commentators, principally economists, have envisaged the grayest sorb of consequences if the American purchase of gold abroad were not linked with international understandings. They predict either gold embargoes by an Anglo-French bloc, the forcing of France to devaluate her own currency, the wholesale demoralisation of foreign exchange, or other things. The most pessimistic and unsupported comment was that the President would possibly use the event, if the purchases fail in their intended effect, to justify direct currency inflation. There are intimations that the purchases would not alone be made in London, but also in Paris and Amsterdam, and there is even a possibility that the activities may bo extended to Canada if a Government agreement is. possible, in view of the Canadian licensing regulation. Experts here, who described as futile the efforts to cheapen the dollar by the purchase of domestic gold, agree that purchases abroad would have the desired effect, provided other nations took no offsetting action. INTERNATIONAL CONTEST. VIEWS IN NEW YORK. NEW YORK, Oct. 29. A switch from passive to aggressive control of the value of the dollar is seen by monetary experts in President Roosevelt’s gold announcement. The possibility of a three-cornered international contest in the world monetary markets among Britain, France and the United States is noted by some observers. Some quarters feel that an international currency contest would quickly end the free gold markets in any important country and bring world-wide restrictions in currency dealings, which would mean the end of the international gold standard as had previously existed, with chaotic international monetary conditions likely to result. • LONDON REACTION. THE LATEST QUOTATIONS. Received October 31, 9.30 a.m. LONDON, Oct. 30. The price of gold is now £6 11s 2Jd per fine ounce. Tlie dollar rate of exchange (London on New York) is 4.79. The city immediately reacted to President Roosevelt's declaration. The dollar fell sharply and gold shares, including Australians, advanced. FRENCH OPINION. DESIGN ON GOLD STANDARD. Received October 31, 11.5 a.m. PARIS, Oct. 30. Financial circles regard President Roosevelt’s policy as an attempt to force the gold bloc to abandon the gold standard. Tlie Governor of the Bank of France is believed to be the author of an authoritative article emphasising that the' 1 Americans attribute the setback to their recovery plans to the maintenance of the gold standard in Europe. RIOTERS IN DETROIT. DESTRUCTION IN WORKS. Received October'3l, 12.20 p.m. NEW YORK, Oct. 30. At Detroit, rioters, said by the police to number 2500, to-day raided seven plants where tool and die makers are on strike. They smashed hundreds of windows, burned blue-prints, overturned automobiles and eluded the police by quickly dispersing before more than six arrests could be made. Shots were fired by the manager of one of the raided plants, but no one was wounded. However, the demonstrators sped through the city in hundreds of automobiles with police cars trailing closely. It was a speedy movement from one factory to another where the damage had been done and made arrests difficult. THE RECOVERY PLAN. PROTECTION "FOR PUBLIC. WASHINGTON, Oct. 29. "If you are being chiselled by a man who sells you a toothbrush, the Government will step in and protect your rights,” said President Roosevelt/s secretary, Mr Howe, in a broadcast speech. "You may get a blank form from the local post office, on which you may write: ‘I went to such a store, which charged me 60 cents for a brush which last week cost only 50 cents. Please investigate.’ The complaint will then be pursued through the wholesaler and the manufacturer. If the reason for the rise in price is not good, the chiseller will face, a National Recovery, Act Court.”