ANOTHER INCREASE

Poverty Bay Herald, Volume LX, Issue 18234, 1 November 1933, Page 7

ANOTHER INCREASE

US. GOLD PRICES REACTIONS IN EUROPE NEG OTIATIONS OPE NED (Elec. Tel. Copyright—United Press Assn.) (Received Nov. 1, 11 a.in.) WASHINGTON, Oct. 31. Despite the slump in world quotations, the United States to-day set the price of gold at 32 dollars 12 cents, a rise oi 16 cents compared with yesterday. Anxious to avoid an unrestrained monetary war, the administration sought an understanding with .Britain oil the application of Mr. Roosevelt’s plan to steady exchanges and increase prices by buying foreign gold. Sir Frederick Leith-Ross interrupted his war debt conferences to talk with the governor of the Federal Reserve Board. .Mr. Black, and the actiiig-Secre-tary of the Treasury, Mr. Acheson. Whilo none of the three would disclose what was taking place, most observers regard it as self-evident that Britain would not sit idly by' and watch the dollar further depreciated. 'lf an agreement could be reachedwhereby the .two nations could work iii co-operation, many economists hold that advantages would accrue, though France might be a potential sufferer, possibly to the extent of relaxing her already precarious hold upon the gold standard. Some economists contended that if Paris abandoned gold, the world situation would he more conducive to a stabilisation agreement, since all important nations would he on the same footing. Meanwhile, commodities and stocks reacted on Monday, after a rally early in the day. Meanwhile, exponents of the varied schools of eeonpmic thought predicted disappointing results from the President’s new gold purchasing plan. Nevertheless, Mr. Roosevelt’s assistants are prepared to make purchases in European markets bv Wednesday at the latest.