SILVER CERTIFICATES

Otago Daily Times, Issue 22102, 4 November 1933, Page 11

SILVER CERTIFICATES

AN AMERICAN PROPOSAL NOT AN INFLATIONARY STEP (United Press Association.) (By Electric Telegraph—Copyright.) WASHINGTON, November 2. The United States Treasury may soon issue 11,000,000 dollars in silver certificates, backed by the silver received from last June’s war debt payments. An amendment to the loan law authorising /acceptance of debt payments in this medium required the silver thus received to be made the backing for a ■certificate issue. The process of assaying the metal received has just been completed. The next step would be the engraving of the certificates. Treasury officials to-day denied that this could be considered inflationary, as the certificates would be used in the normal course of business, replacing other forma of currency as they were turned in at the Treasury fdr redemption.

No statement has been Issued as to what the denominations of the certificates are to be.

PURCHASING OF GOLD. THE GOVERNMENT’S PLAN. NEW YORK, November 2. Plans for the purchasing of imported gold by the Government, it is understood, are being formulated to supplement the purchases of domestic newlymined metal. The Government hopes thus to avoid the necessity of direct dealings in foreign gold, leaving these to individuals choosing to ship gold here. It is understood that payment, will be made by the Reconstruction Finance Corporation in 90-day notes. FRENCH GOLD PURCHASED. LONDON, November 3. (Received Nov. 3, at 10.15 p.m.) Financial circles state that there is no sign that America is bidding for gold here, but Paris reports that the American Government began to buy French gold, using franc holdings, which action helps the new French Government's policy of balancing the Budget. Warnings have everywhere been issued to the effect that if the Budget is not balanced without delay the franc will be attacked and unable to resist.