FINANCIAL PLANS

Southland Times, Issue 22157, 27 October 1933, Page 7

FINANCIAL PLANS

AMERICAN PRESIDENT NO INDICATION GIVEN JOURNALISTS BUYING OF GOLD (United Press Assn.—Telegraph Copyright.) Washington, October 25. President Roosevelt, who is indisposed, to-day joked with the political correspondents’ committee, whom he received in his bedroom. He discussed the infra red ray lamp, which he is using to end his cold, but he declined to discuss financial plans, although the journalists pointed out that everybody in Wall Street would like to have from him a schedule of his monetary plans for the next 60 days. He stated that nobody knew what the Bank of England would do to-morrow or the Bank of France would do to-day. _ Open market purchases of American gold began to-day at 31.36 dollars an ounce, 22 cents above the London price, which rose five cents from its own opening price to 31.14. The value of the dollar here thus became 65.91 cents in gold or a-half per cent, less than its value in French gold francs. The procedure of the gold purchases was to offer for subscriptions in unlimited amounts to 90 days the debentures of the Reconstruction Finance Corporation, the subscripition to be payable in newly-mined gold. The amount of gold mined in the United States averages approximately 1,000,000 dollars a week.

SURPRISE IN LONDON GOLD FOR SECURITIES. (United Press Assn.—Telegraph Copyright.) (Rec. 10.5 p.m.) London, October 26. The financial editor of the Daily Telegraph says that bullion brokers keenly awaited the American Treasury’s announcement of its intention to buy gold at 31 dollars 36 cents an ounce or 22 cents above yesterday’s London price. What created a surprise and some preliminary confusion was the decision to pay for gold in Reconstruction Corporation debentures, which are readily cashable. The sale of gold for a marketable security is surely unique in the annals of the mining industry. As the American plan will not draw gold from other markets it does not create a new free gold market and does not compete with the London price. Its practical effect is limited to depreciation of the dollar as a result of which it is expected that internal commodity prices will rise.

FRENCH PUZZLED EXCHANGE MAY BE AFFECTED. (United Press Assn.—Telegraph Copyright.) (Rec. 10.5 p.m.) Paris, October 26. Financial circles are puzzled at Mr Roosevelt’s decision and express the opinion that as it concerns only America’s home production of gold, amounting to only 6 per cent, of the world’s output, it will indirectly affect the dollar exchange. If the Finance Corporation begins to buy gold in the world market protective measures will be necessary.

CROP LOANS EXTENSION TO MAIZE. (United Press Assn.—Telegraph Copyright.) (Rec. 10.25 p.m.) Washington, October 26. In an effort to counteract the farm strike sentiment in the west, the agricultural administration to-day announced an extension of Government crop loans to maize, having the effect of pegging the price at 50 cents a bushel which is some two cents above to-day’s market price. Such loans will only be made to States having certain types of maize-storing laws, but probably will later be extended to other States.

Similar loans for other crops, notably wheat, are being considered. All the loans are contingent on a curtailment of production. HIT AT MR FORD WAR DEPARTMENT’S DECISION. (United Press Assn.—Telegraph Copyright.) (Rec. 10.25 p.m.) Washington, October 26. The War Department has announced that none but signers of the N.R.A. would be considered when contracts for motor equipment are let. This is interpreted as a direct thrust at Mr Ford as he is the only major automobile manufacturer who has not singed the code and normally supplies a large quantity of army automobiles.

The attitude of the department came as something of a surprise, as the recent presidential executive order merely said that all future Government contractors should be required to live up to the code conditions.

CONTROL OF IMPORTS MACHINERY PROVIDED. (United Press Assn.—Telegraph Copyright.) Washington, October 24. Machinery to control imports that might endanger codified American industry was given to the National Recovery Administration to-day by Mr Roosevelt in an executive order formally authorizing the recovery unit to investigate complaints against cheap foreign imports. Embargoes, quotas, and higher tariffs are all at the command of . the administration if the investigation finds that the pleas of American producers are justified.