AMERICAN CURRENCY

Otago Daily Times, Issue 22065, 22 September 1933, Page 7

AMERICAN CURRENCY

THE MOVE FOR INFLATION . A SENATOR’S ASSERTION (United Press Association.) (By Electric Telegraph—Copyright.) WASHINGTON, September 20. Senator Thomas asserted to-day that President Roosevelt is gradually bringing about Inflation of the currency, but that “he will not even dare admit it.” Senator Thomas added: “My opinion is that President Roosevelt does not want to make a statement' on inflation, because if he even hinted at it commodity prices' would jump too fast and too high before the money was distributed among the people. When all these codes are signed-under the National Recovery Act and millions of persons have returned to work, the President will be free openly to concede inflation. That time is now approaching rapidly.” The New York Evening Post’s Washington correspondent says: “ While President Roosevelt has been avoiding definite currency inflation moves, the opinion prevails in Washington that a partial devaluation of the gold value of the dollar to a lower level than that which prevailed' when the gold standard was dropped, is inevitable when the United States again stabilises its currency.”

GIGANTIC MARCH PLANNED.

WASHINGTON, September 20.

A gigantic march on Washington next month is proposed by Senator Thomah (South Carolina) as a pro-inflation demonstration. Unless the President acts meanwhile he proposes to have 1,000,000 farmers, industrial workers, and war veterans from all parts of the nation parade the streets of the capital.

THE PRESIDENT RETICENT.

WASHINGTON, September 20,

President Roosevelt announced tb-day that he would receive the southern delegation urging United States currency inflation. Meanwhile he maintains strict silence as to his views on the subject.

EXPERTS’ RECOMMENDATIONS,

WASHINGTON, September 20.

Reliable information to-night indicates that a committee of monetary experts, secretly appointed by President Roosevelt to advise him on inflation, is opposed to radical inflation, but - recommends the immediate stabilisation of the American, British, French, and German currencies by pegging them to each other.

A COMMODITY DOLLAR,

WASHINGTON, September 20. (Received Sept. 21, at 8 p.m.)

Amid the clamour, for inflation President Roosevelt to-day gave consideration to the problem in a, long talk with Dr Gedrge Warren, of Cornell University, ■who has made a study of the European monetary situation for the President. No official word came from the discussions, but the meeting revived reports that Dr Warren is working out plans for a commodity dollar, the buying power of which with relation to commodities would remain constant in relation to gold. It would rise and fall with the commodity price index.

WALL STREET MYSTIFIED,

NEW YORK, September 20, (Received Sept. 21, at 11.55 p.m.)

On the second anniversary of Britain’s dropping of the gold standard, to-day sterling came within one cent, of gold standard parity. The dollar early in the day was quoted at 4.85 J, but later dropped, closing at 4.7 DJ. The gold value of the dollar again dropped to a new low level to an indicated value of 63.71 against the franc. The price of gold has been fixed at 82.28 dollars an ounce.

The Stock Exchange failed to stimulate the falling dollar, which closed irregularly lower. This phenomenon is considerably mystifying Wall street, the only explanation being that traders are taking more interest in other market factors and the reported heavy exports of capital through the purchase of foreign commodities and other means. The chief National Recovery Act development at Washington was the submission of the retailers’ code for public consideration. Price fixing and control features were included, and immediately produced the anticipated storm of protests. It is expected that final action will be deferred for at least a week.

Disturbed over reports that imports of cheaply-made foreign goods are threatening to disrupt the National Recovery Act programme, administration officials have drafted a plan by whibh President Roosevelt can arbitrarily impose extra fees, in addition to the regular import duties. Furthermore, he could' com--1 pletely exclude such goods as he considers necessary.