PURCHASE OF GOLD

New Zealand Herald, Volume LXX, Issue 21640, 4 November 1933, Page 11

PURCHASE OF GOLD

IMPORTS TO BE SECURED UNITED STATES' POLICY WASHINGTON. Nov. 2 The United States Government today fixed the price of gold at 32 dollars 36 cents an ounce, or 25 cents above tho world market rate. With this price fixed in America and the London bullion quotation rising to 31 dollars 52 cent 3 the dollar was weak, declining to 4.85 against sterling in late trading and also weakening against the franc, so that tho dollar was worth only 64.23 cents gold. On that basis stocks on the New York Stock Exchange moved forward slowly, but persistently, leading issues finishing fractionally to two points higher. The further depreciation of the dollar against foreign exchanges encouraged the transfer of funds into commodities and equities which would benefit directly from rising commodity prices, particularly petroleum, rubber, sugar and mining shares. Gold and silver mining stocks, however, suffered from late sales for profittaking in spite of rising prices for both metals. Spot silver advanced to 40J cents an ounce, the highest since April, 1930. Wheat finished two cents' higher. The Government's plans for purchasing imported gold are being formulated to supplement purchases of domestic newly-mined metal. The Government hopes in this way to avoid the necessity for direct dealings in the foreign gold and exchange markets, leaving them to individuals who choose to ship gold to America. It is understood that this will be paid also by the Reconstruction Finance Corporation in 90day notes. BUYING IN FRANCE USING FRANC HOLDINGS BUDGET POLICY ASSISTED (Received November 3, 8.35 p.m.) LONDON, Nov. 3 It is stated in financial circles in London that there is no signs of America bidding for gold here, but reports from Paris say tne Xlnited States Government has begun to buy French gold, using franc holdings, which action helps the new French Government in its policy of balancing the Budget. Warnings have been issued in all directions to . the effect that if the Budget is not balanced without delay the franc will be attacked and will not be able to resist.

silver Certificates ISSUE THOUGHT LIKELY PLANS NOT YET DEFINITE WASHINGTON, Nov. 2 The United States Treasury soon may issue 11,000,000 dollars in silver certificates backed by the silver received last June in war debt payments. An amendment to the farm loan law authorising the acceptance of debt payments in this medium required that the silver thus received should be made the backing for the certificate issue. The process of assaying the metal received has just been completed, and the next step will be the engraving of the certificates. Treasury officials today denied that this could be considered inflationary as the certificates would be used in the normal course of business, replacing other forms of currency as they were turned in at the Treasury for redemption. No statement has been issued as to what the denomination of tho certificates will be.