THE PRICE OF GOLD

Poverty Bay Herald, Volume LX, Issue 18257, 28 November 1933, Page 5

THE PRICE OF GOLD

FIXATION BY AMERICA PRINCIPLE DEFENDED WASHINGTON, Nov, 27. Professor Moley to-day defended his former chief's monetary policy. When asked: “As someone has to fix the price of gold, why should not it bo the United States?” he replied: “For years the Hank 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 were no complaints when England was forcing the pound down from 486 to 325 cents. Why should there be complaints now that Air. Roosevelt lias forced the pound hack, regaining international trade that was being diverted to Rritain by the decline of the pound?” U.S. PURCHASES ILLEGAL? LIVELY CONTROVERSY NEW YORK, Nov. 26. The New York Herald-Tribune declares that Mr. Jicheson was forced from his Treasury post due to his contention that gold buying through the Reconstruction Finance Corporation was illegal. hi a memorandum submitted to the President before his resignation, Mr. Acheson construed the provisions of the Reconstruction Finance Corporation Act as not such as to allow its securities to be exchanged for gold. Countering this. the corporation’s counsel and the Attorney-General, Mr. ,T. Cummings, submitted opinions declaring that the corporation was authorised to refinance itself through the sale of its securities, and thus the purchases of gold were within the law. It is expected that Mr. Acheson’s legal view will form the basis of a Congressional attack on Mr. Roosevelt s policy, with a possible revision of the Reconstruction Finance Corporation law.