INFLATION INDICATED

Otago Daily Times, Issue 22100, 2 November 1933, Page 9

INFLATION INDICATED

AMERICAN GOLD PURCHASES UNFAVOURABLE IMPRESSION (United Press Association.) (By Electric Telegraph—Copyright.) AMSTERDAM, October 31. The American action has created an unfavourable impression, and it is taken to indicate that inflation will follow. The gold purchases abroad are unlikely to be heavy, for this action is bound to result in a heavy decline in the value of the dollar. HELPING ONE CLASS. LONDON, October 31. The Manchester Guardian’s city editor declares that President Roosevelt is helping only one class—namely, speculators and investors in gold shares, who are promising themselves a grand boom. OPINION IN FRANCE. PARIS, October 31. President Roosevelt’s action is interpreted in financial circles as an attempt to force the remaining gold standard countries off gold by creating insurmountable difficulties, PRICE OF GOLD FIXED. WASHINGTON, October 31. Despite the slump in world quotations the United States to-day set the price of gold at 32 dollars 12 cents. ONE EFFECT OP POLICY. MINING BOOM IN AMERICA. WASHINGTON, October 31. (Received Nov. 1, at 7 p.m.) The most notable effect of the Government’s gold *policy, apart from the general uncertainty it has created, has been the increase in mining activities in the west, where abandoned properties are again being taken up for working, and the rise in gold mining shares and the flood of fraudulent gold mining stock, which is finding gullible purchasers. The United States Bureau of Mining has warned the public against the resumption of some forms of mining as not likely to be profitable despite the increased prices of gold. The extent of the revival, however, can be understood when it is considered that hydraulic gold mining, which has long been prohibited in California, is likely now to be made legal again. The prohibition arose out of the water impounding problem.