RECOVERY PROGRAMME

Otago Daily Times, Issue 22136, 14 December 1933, Page 9

RECOVERY PROGRAMME

AMERICA’S BIG EFFORT UNWARRANTED APPREHENSION. CHICAGO. December 12. A controlled profit system “as a proper reward for individual initiative in industry and thrift” must be maintained if the Government’s recovery programme is to succeed, Mr Peek told the American Farm Bureau Federation to-day. He said: “ The great apprehension in the minds of many business men about the relations of the Government to business” is unwarranted, because the “ Government has more hay down now than it will get up before it rains. I 'believe that under any system of government individual effort must be encouraged and the property rights of the individual protected.” BALANCING THE BUDGET. WASHINGTON, December 12. (Received Dec. 13, at 11 p.m.) Consideration of the Federal Budget for the fiscal year 1935 is attracting much attention in view of the reconvening of Congress less than a month hence. President Roosevelt conferred with his fiscal advisers to-day,' including Mr Douglas, the Director of the Budget. It is understood that their chief concern is to bring the so-called ordinary Budget into the balance and at the same time keep extraordinary expenditures, that is emergency relief expenditures, within reason. It is understood that Mr Douglas wishes to keep the ordinary Budget at 2,600,000,000 dollars, with anticipated revenues of about 3,500,000,000 dollars, hoping that the excess will adequately provide interest charges on the public debt, including additional borrowing necessary for works, crops, loans, etc. It is universally recognised that the success or failure 6t such aims would be an important factor in the inflation controversy as failure to maintain the Governments credit would be regarded as the sure path to inflation. PRICE OF GOLD UNCHANGED. WASHINGTON, December 12. The gold price was unchanged, and was 1.76 above the London price on the basis of sterling, opening at 5.10 J. The persistence with which the American Treasury figure is being made available in London before it is published here continues to puzzle the authorities. The reports of stabilisation conferences between Britain, France, and the UnitSd States are denied by the Treasury. The dollar rose in value against foreign exchanges to-day and against the franc and sterling, which both fell. Commodities fell and the'prices of stocks and bonds were irregular.

. FEDERAL RESERVE BANKS. GOLD RESOURCES AVAILABLE. WASHINGTON. December 13. ‘ (Received Dec. 14, at 1 a.m.) While the inflation debate continues to absorb the attention of statesmen and economists the United States Federal Reserve figures, disclosed on Tuesday, show that the system had sufficient gold resources to increase the currency in circulation by more than 50 per cent, without resorting to any inflationary measure. It was described as ready to do this as rapidly as the new note issue could be pushed into the channels of industry and commerce. The difficulty is that the outlets are clogged. Loans by member banks are shown to be continuing at a low level, with consequent small demands by these banks upon Federal Reserve Banks for cash. The Federal Reserve figures showed that it could issue nearly 3,000,000.000 dollars in new Federal Reserve notes, every dollar of which would have gold backing above 40 per cent, required by law.