GOLD STANDARD

Southland Times, Issue 21835, 12 October 1932, Page 7

GOLD STANDARD

AMERICA’S ADHERENCE RAID ON THE DOLLAR COLLAPSES PRICES STILL FALLING (United Press Assn.—Telegraph Copyright.) (Rec. 7.0 p.m.) New York, October 10. Although the European raid on the dollar, in which French speculators apparently attempted to capitalize Mr Hoover’s gold standard utterances, completely collapsed to-day with the franc exchange down 1J to 3.92 g, safely below the gold point, the recession of domestic security and commodity prices continues. Meanwhile, Republicans apparently intend to press the gold standard as a political issue. The Washington correspondent of the New York Times reports that Senator Reed returned from Europe and after a conference with Mr Hoover reiterated the contention that the gold standard was severely endangered, blaming the inflation measures pending in Congress at that time. He added: “If the Domocrates get control of the Government and pass these measures, the United States will be thrown off the gold standard without any doubt.” Discussing the European situation, Senator Reed declined to predict British and French action on the Lytton report. He insisted that he had not discussed war debts, but expressed the opinion that both Britain and France would meet interest payments due on December 15. He described the domestic fiscal situation as still serious, and indicated that another attempt to exact a sales tax would be undertaken during the session of Congress starting in December.