AMERICAN MARKETS

Southland Times, Issue 22159, 30 October 1933, Page 7

AMERICAN MARKETS

STOCKS IMPROVE. (United Press Assn.—Telegraph Copyright.) (Rec. 5.5 p.m.) Washington, October 27. The purchase of gold continued today with the price set at 31.76 dollars compared with the London price, variously computed at 31.02 to 31.10, depending on the hour and source of quotation received here. The value of the dollar as computed from French francs at the close of the day’s quotations was 67.49 cents compared to 65.08 cents on a basis of the Government’s gold price. Sterling declined three cents to 470 a-.

The markets, however, were up, wheat gaining three cents from early low levels and the stock market, after drifting in extremely dull trading, started to advance early in the afternoon, leading shares going up one to six points. Cotton, rubber and other staple products reflected the stock market’s improvement.

PRICE OF GOLD INCREASE NOTED. (United Press Assn.—Telegraph Copyright ) (Rec. 6.55 p.m.) New York, October 28. The end of the first week of Mr Roosevelt’s gold policy has more than ever convinced the local financial com-* munity that the mere announcement of a newly-mined gold-buying policy will not serve to control the course of the dollar on the foreign exchange, nor affect materially domestic prices. Today the price of gold was fixed at 31.81 dollars per ounce, an increase of six cents from yesterday, or 1.25 over the London price, which is down. However, domestic markets sagged and stock exchange prices were down a fraction in almost stagnant trading, all speculative interests apparently having withdrawn pending a further gold step. Mr Roosevelt outlined in a broadcast that it was felt here the Government would soon be compelled to undertake the purchase of gold abroad, but, he regarded this as dangerous and likely to cause foreign retaliation.

STIMULATING INDUSTRY MR ROOSEVELT’S PLAN. (United Press Assn.—Telegraph Copyright ) (Rec. 7.15 p.m.) Washington, Oct. 28. Mr Roosevelt’s plan to stimulate the steel industry is again brought forward as the President charged four leading steel corporations with collusion in bidding for contracts for years. Through extra legal agreement, the price of rails has been pegged at 40 dollars per ton. Mr Roosevelt indicated that the companies should bid individually and at a lower rate in order to get the Government’s contemplated order of 1,000,000 tons. To-day the corporations presented a uniform bid of 37.75 dollars pe r t° n - . . , , ... The Government in a virtual ultimatum said that either the bids be reduced to 35 dollars or the companies’ books would be opened for Government inspection, whereon Mr Roosevelt would fix a fair price. The public works administration has announced that 200,000,000 dollars have been allocated for a new Government corporation to engage directly in the construction of model homes and tenements in congested city sections.