RAISING PRICE LEVELS

Otago Daily Times, Issue 22122, 28 November 1933, Page 9

RAISING PRICE LEVELS

THE AMERICAN EXPERIMENT NOT SUCCESSFUL SO FAR (United Press Association.) (By Electric Telegraph—Copyright.) WASHINGTON, November 26. (Received Nov. 27, at 5.5 p.m.) A comprehensive price survey declares that after a month of the gold buying experiment the price level, based on the index of 100 commodities, has not increased anywhere in proportion to the increased price of gold. Actually it has declined a fraction of 1 per cent.,' while the value of gold has increased 13.29 per cent. The gold value of the dollar lias decreased by 11.72 per cent. The average price of 40 domestic bonds has decreased by 4.74 per cent., and Government securities by 2.91, while 10 foreign Government bonds are up 3.18. THE PRESIDENT’S POLICY. CRITICS DENOUNCED. WASHINGTON, November 26. (Received Nov. 27, at 5.5 p.m.) A former senator, Mr Robert Owen, one of the framers of the Federal Reserve Act, denounced President Roosevelt’s critics. Ho predicted that if an opposite course was taken, that is, continued deflation, recovery would be halted, the depression renewed, and there would probably be “ a violent lunge Into Communism.” MR ACHESON’S RESIGNATION. NEW YORK, November 26, (Received Nov. 27, at 9 p.m.) The New York-Herald Tribune declares that Mr Acheson was forced from his Treasury post because of his contention that gold buying through the Reconstruction Finance Corporation was illegal. In a memorandum submitted to the President before his resignation Mr Acheson construed the provisions of the Reconstruction Finance Corporation Act as not being such as to allow its securities to bo exchanged for gold. Countering this, the. corporation’s counsel and Attorney-general Cummings submitted opinions declaring that the corporation was authorised to refinance itself through the' sale of its securities, and thus purchases of gold were within the law. - It is expected that Mr Acheson’s legal view will form the basis of t a Congressional attack on President Roosevelt’s policy, with possible revision of the Reconstruction Finance Corporation law.

PROFESSOR MOLEY’S VIEWS. MONETARY POLICY SUPPORTED. SANTA BARBARA (California), November 27. Professor Moley to-day defended his former chiefs monetary policy. He asked: “ Someone has to fix the price of gold, and why should not it be the United States? " He added; “ For years the Bank of England fixed the price of gold and no one ever howled. Now that the President has decided to have the United States fix the price why should there be any objections? There was no complaint when England was forcing the pound down from 4.86 to 3.25, so why should there be complaints now that President Roosevelt has forced the pound back, regaining the international trade that was being diverted to Britain by the decline in the pound?”