SWEEPING ORDER

Southland Times, Issue 22210, 30 December 1933, Page 5

SWEEPING ORDER

AMERICAN TREASURY

GOLD COIN AND BULLION CLAIMED

FIVE EXCEPTIONS

(United Press Assn.—Telegraph Copyright.) (Rec. 5.5 p.m.) Washington, December 28.

The Secretary of the Treasury, Mr Henry Morgenthau, to-night issued a sweeping new order requiring the delivery to the Treasury of all gold coin, bullion and certificates held in the United States. The following five exceptions to the order are permitted:— (1) Cold bullion held under Federal licenses.

(2) Rare gold coin having a recognized value to numismatists.

(3) Gold not exceeding 100 dollars in the hands of individuals. (4) Gold coin, bullion or certificates owned by the Federal Reserve banks and the Reconstruction Finance Corporation. (5) Gold now in Hawaii, the Philippines and other United States possessions.

Mr Morgenthau’s order was issued under the authority of the emergency banking amendment authorizing the Secretary of the Treasury to require the delivery of gold coin, bullion and certificates to the Treasurer whenever, in his judgment, ‘‘such action is necessary to protect the currency system of the United States.”

The order provides a penalty for noncompliers of 10,000 dollars fine plus the assessment of twice the amount of gold held and ten years’ imprisonment. It is understood that the regulations issued make more effective Mr Roosevelt’s original gold order. With reports persisting that some new move is imminent in the Administration’s monetary programme leading to the eventual devaluation of the dollar and seizure by the Government of profit in gold, the new order is interpreted in some quarters as a final drive to get gold in before such action is taken. This, however, is denied at the Treasury. THE DOLLAR FIRMER NEW YORK MARKETS RALLY. (United Press Assn.—Telegraph Copyright.) New York, December 28. Although the Government’s price of gold was unchanged to-day the dollar was firm and up slightly. The markets rallied on what Wall Street observers characterized as confidence in the coming year. Stock prices closed up one to five points. Slight year-end selling was easily absorbed by heavy buying. Commodities vzere irregular and sterling and the franc were slightly off with a higher dollar. The dollar closed at 6-1.12, sterling at 5.07" and the franc at 608.