GOLD POLICY

Otago Daily Times, Issue 22137, 15 December 1933, Page 11

GOLD POLICY

PURCHASES BY AMERICA THE PRICE UNCHANGED (United Press Association.) (By Electric Telegraph—Copyright.) [ WASHINGTON, December 13. ! (Received Dec. 14, at 5.5 p.m.) The price of gold is unchanged. The dollar showed new strength on the London market. Meanwhile the gold purchasing programme has been subordinate in immediate interest to the Budget preparations at White House. The Treasury needs, for continuing the public works programme and other relief undertakings require a continuous, even a mounting, Outlay during the winter, aggravating the Budget problems. In the foreign exchange market the dollar went to a new high level in the current movement, 65.35 cents in terms of the franc, which, with sterling, dropped. Commodities weakened a« the drop in sterling caused a setting in rubber,, silver,, grains, and other staples. Wheat was 2} , cents lower. United States Government bonds were firm, but the general bond market turned easier after 11 days of rising prices. Stocks sagged irregularly in a dull market. A STABILISED DOLLAR. WASHINGTON, December 13, (Received Dec. 14, at 9 p.m.) Senator Thomas revealed to-day that he had been informed that the New York Federal Reserve Bank was negotiating with the Banks of England and France in regard to a stabilised dollar at about 62 cents. He immediately issued a statement denouncing stabilisation at any figure above 60 cents, and threatened an inflation fight in the Congress if the President does so. He said that higher stabilisation would produce/a terrible situation, and probably result in the collapse of the President’s recovery programme. He predicted that various 'elements of the inflation group would have a. majority in the Congress, but probably not enough to override the Presidential veto.