UNITED STATES

Otago Daily Times, Issue 21941, 1 May 1933, Page 10

UNITED STATES

STABILITY OF THE DOLLAR BUSINESS CIRCLES MOVING (United Press Association.) (By Electric Telegraph—Copyright.) NEW YORK, April 28. International banking circles have been "ivin o- serious consideration to the possibility that an equalisation fund might have to be established soon to maintain the stability of the United States dollar in the foreign exchange markets. This conclusion is predicted on the assumption that the dollar will not immediately bo devalued, if at all. it is stated, would have the effect of pegging the United States currency, probably obviating the necessity of adopting apy other measures. However, if the dollar is not pegged it is likely that some sort of fund might be established to buy and sell foreign exchange in order to protect the dollar from wild gyrhtions which -would be disturbing to business, in the opinion of certain authorities here. MEETING OF SENATE. FARM BILL PASSED. WASHINGTON, April 28. , After voting to increase from one hundred million to two hundred million dollars the amount of war debt payments payable in silver under the administration inflation programme the Senate today agreed to reconsider the decision. The Senate passed the Farm Bill, to which the Roosevelt inflation programme is an amendment. EFFECT ON MARKETS. PRICE FLUCTUATIONS. HUGE BUSINESS ON SATURDAY. NEW YORK, April 29. (Received April 30, at 7.15 p.m.) New York markets responded to the passage of thte inflation and farm measures by the Senate with wild price fluctuations. In the brief space of two hours in the half-day market to-day, with stocks, commodities, and speculative bonds soaring and the dollar and giltedged obligations tumbling, the volume of stock trading was 3,389,000 shares, the largest for any Saturday in three years. Prices closed at the very top gains, ranging from two to six points. Wheat at Chicago went up £5 12s 6d, and other commodities in various markets of the nation took a similar course. The dollar slumped severely, losing six cents against sterling, 110 points Against the German mark, 170 against the Dutch guilder, and 10 to 75 points against other currencies.

TARIFF LEGISLATION

OUTLINE OF PROPOSALS. ,

NEW YORK, April 29,

(Received April 30, at 11.5 p.m.) The Herald-Tribune’s Washington correspondent states that the parties are virtually prepared to place in writing the reciprocal trade agreement with Canada. As Mr Bennett left Washington this afternoon Mr Roosevelt will not delay his tariff legislation, on the passage of which an agreement depends. Because of legal and political complications the congressional- control of the tariff “revisions makes immediate action impossible. While .President Roosevelt and Mr Bennett were issuing a joint statement declaring that their conversations had been eminently satisfactory it was disclosed that the groundwork for a trade agreement between the two countries had been reached, although there must be more discussion of the commodities involved. Canada is chiefly interested in obtaining tariff reductions from the United States on timber, copper, oil, cattle, potatoes, wheat, dairy products, and fish. The Americans have asked for a cessation of the Canadian dumping taxes and a lowering of tariffs on American manufactured products, machinery, electrical equipment, chemicals, and automobiles. It is understood that Mr Bennett and Mr Roosevelt specifically discussed the lowering of the gold coverage behind the currencies of the two countries and stabilising them, perhaps on a lower level, bi-raetalism not being an impossi-v bility. THE FARM BILL. SWEEPING IN. CHARACTER. WASHINGTON, April 28. (Received April 30, at 6.30 p.m.) The passage of the Farm Bill came after three weeks’ comprehensive debate. An amendment to the inflation plan to increase from 100,000,000 dollars to 200,000,000 dollars, the amount that Mr Roosevelt may accept in silver at 60 cents per ounce in the next six months on the war debts, was accepted.' The legislation is the most sweeping in character that has ever gone through Congress, although action under nearly, all ths provisions is discretionary, with the Administration. The Farm Bill vests extensive permissive powers in the President’s hands to extend America’s credit and currency by at least six billion dollars, and places an equally broad authority in the Secretary of the Agricultural Department (Mr Wallace) to raise furtlier the prices of basic farm commodities through the levying of processing taxes and licensing fees, and through marketing a'Teements and controlled production. WASHINGTON, April 29 (Received April 30, at 6.30 p.m.) Defying both the Republican interparty opposition and the Democratic leadership, the Senate to-day, by a large majority, forced through the Administration’s inflation measure, including provision for the payment up to 200,000,000 dollars of war debts in silver, and with equal decisiveness defeated a proposal to pay the bonus in inflated currency. It then passed the Farm Bill, to which inflation is an amendment.