NATIONAL RECOVERY

New Zealand Herald, Volume LXX, Issue 21647, 13 November 1933, Page 11

NATIONAL RECOVERY

AMERICAN PROGRAMME HUGE COST INVOLVED MR. FORD AND GOVERNMENT By Telegraph—Press Association—Copyright (Received November 12, 5.5 p.m.i WASHINGTON, Nov. U The National Recovery Admin'' . v tion has approved a code for the c : ing and dyeing industry. It is to eliminate racketeering and ' - throat competition which for years h,v. retarded the industry. The. wages and hours scales ir.e. . 1 the, re-employment of 20,000 and ; t addition to annual wages of 11,000 (.'' .1 dollars. The National Industrial Conference Board will issue a statement to-day. It is estimated that the administration has " underwritten " the recovery programme to the extent <>J 15,135,000,000 dollars, representing the amount of money spent or lent through various agencies in the effort (o restore prosperity. This includes public works appropriations, loans to industries, farmers, banks, home owners, etc., direct applications by unemployed for relief, ami Government projects such as the Tennessee Piver reclamation. The controversy over Mr. Henry Ford's right to Government contracts in spite of his failure to sign tha N.R.A. motor industry code, was brought to a head to-day when tho fiscal controller declared that a violation of the code by Mr. Ford had not been proved Therefore his tenders for Government equipment must ba honoured. Tho particular case involved is the supply of. a number of light lorries for which Mr. Ford's tender was the lowest. As the controller has tha final decision in such matters, pending an adverse Court decision, the chief administrator of the N.R.A., General Johnson, now must either drop the war on Mr. Ford or go to the Court. It la said that N.R.A. officials are not satisfied with the decision, and insist that Mr. Ford has lost his right to sell to the Government, but no Court action! is definitely announced.

DOLLAR AND GOLD POSITION IN AMERICA CRITICISM BY EXPERTS (Received November 12, 6.35 p.m.) WASHINGTON, Nov. tl In an apparent effort to check the collapse of the dollar, the United States Government, for the first time, fixed the price of gold yesterday belotv the world quotation. The price was set at 33 dollars 20 cents an ounce, while in London dollar rates indicated a price of 33.26. Some financial experts hold that the Government has overstepped the mark, and that the continued weakness of Government bonds without a compensating wide advance in security and commodity prices, is causing the officials considerable worry. Sterling reacted on the gold price, closing at 5 dollars 12 cents, after touching 5.16. Stock prices were irreg-' ularly lower on listless trading. To-day the Government advanced the price of gold to 33 dollars 32 cents an ounce."However, the dollar closed 62.54 cents up or .06 in terms of gold francs. Sterling dipped to 5 dollars 03i cents, advanced to 5.10 and closed jit 5.09. Domestic prices advanced slightly in spite of the strength of the dollar. The financial editor of the New York Times comments: —The results of two and ahalf weeks' operation of the new monetary policy have proved that it is capable of cheapening the dollar rapidly, but it is not indicated yet that it can secure anything like a proportionate rise in liomestie prices. The financial editor of the New York Evening Post reports that there is widespread anticipation in the Wall Street community that Australia will soon attempt to convert its dollar bonds into sterling securities. It is held that such a move will likely be successful, as the 5 per cent dollar bonds are quoted here around S6, whereas sterling bonds of the same issue are at a fair premium in London. AMERICAN CAPITAL FLIGHT TO LONDON LONDON, Nor. 10 The City editor of the Daily Express estimates that the slump in the United States dollar has brought £100,000,000 of American money to London. Purchases of British Government stocks by Americans in the last two days have totalled between £40,000,000 and £60,000.000.