CANADA'S POSITION

New Zealand Herald, Volume LXXI, Issue 21702, 18 January 1934, Page 9

CANADA'S POSITION

NEW GOLD - STANDARD

A STRONG AGITATION

DEVALUATION POSSIBLE

STABILISATION OF CURRENCY

By Telegraph—Press Association—Copyright (Received January 17. 6.15 p.m.) NEW YORK. Jan. 16 The Ottawa correspondent of the New York Times states - that after the Prime Minister, Mr. R. B. Bennett, had discussed Mr. Roosevelt's monetary programme to-day it was indicated that a bill probably will be introduced in Parliament in the coming session to reduce the gold content of the Canadian dollar. The need for stabilisation has been constantly urged by importers and exporters who say it would remove uncertain tv.

There is now a strong agitation for a new gold standard of 14 of 15 grains of pure gold, so that the dollar's nominal value may more closely correspond with its legal value expressed in gold, which is 23.22 troy grains, as provided in the Statutes.

The adoption of a lower gold content would eventually reduce the burden of all indebtedness payable in Canadian currency and tend to increase the prices of commodities in domestic trade.

Some groups have been urging the Government to increase the note issue 100,000,000 dollars. Mr. Bennett, however, is known to be standing firm on sound money, believing that such a form of inflation would quickly lead Canada into insolvency.

EFFECTS W LONDON

VALUE OF GOLD RISES STOCK EXCHANGE FIRMER (Received January 17. 5.5 p.m.) LONDON. Jan. 18 The newspapers emphasise that Mr. Roosevelt's action means that his Government has actually captured at least 40 per cent of American capital and now is hoping for a speedy stabilisation arrangement with Britain and France. Gold rose to £6 lis 9d an ounce as the result of Mr. Roosevelt's policy. It is understood that Americans bought nearly all of the £BOO,OOO worth of bar gold marketed in London.

Prices on the Stock Exchange generally advanced,-especially gold mine shares, which were in active demand. A British official wireless message states' that the American* developments were much discussed in the London stock markets, where the tone in most departments was somewhat hesitant. City opinion regarding Mr. Roosevelt's plan recognises that the measure announced is immediately directed at the internal situation in America and that time is required to assess its wider repercussions.

BOOM CONDITIONS GOLDMINING SHARES LONDON AND JOHANNESBURG (Received January 17. 11.25 p.m.) LONDON. Jan. IT, The effect of Mr. Roosevelt's- decision on goldmining shares was eleotrical and boom-like conditions prevailed in London and Johannesburg. The unexpectedly large advance in the price of the metal helped to send prices soaring. . * The market wavered later as profittaking developed.