PRICES SWEEP UPWARD

Taranaki Daily News, 29 May 1933, Page 7

PRICES SWEEP UPWARD

RECORD DAY ON EXCHANGE WILD FLURRY OP BUYING Rec. 7 p.m. Washington, May 27. Since President Roosevelt officially dropped the gold standard by refusing to allow gold exports there has been much confusion regarding the payment of interest on Government bonds, particularly those held abroad. Mr. W. Woodin, Secretary to the Treasury, to-day issued a statement explaining that while one court had already upheld the Government’s right to pay in “other lawful forms of money,” it was desired that there should be clarifying legislation to prevent confused legal constructions in other jurisdictions. Mr. Woodin added that all future obligations, both public and private, would not contain a gold clause. The House of Representatives Banking Committee to-day approved the Administration’s Bill outlawing the “gold clause,” of contracts and making all contracts, private and public, payable in legal tender money. In one of the largest buying waves for a Saturday session in years stocks at New York swept upward to-day, closing with gains ranging from one to eight points or more. Wall Street buzzed with the possibility of the establishment there of an open gold market, permitting gold to advance above the legal level. Following the voiding of the gold clauses in public and private obligations, gold issues in a wild flurry of buying swept through virtually all categories, shares and commodities surging up in sympathy. A Winnipeg message says' the opening surge of buying sent wheat futures soaring into higher ground to-day, and at the close they maintained gains of 2| to 2 1-8 cents. May delivery closed at 65 cents, July at 65 3-8, October at 67* and December at 68J. At Chicago wheat opened four cents higher and reacted slightly to close at 2} to three cents higher. Corn was from one to 1 3-8 cents higher. CANADA WELCOMES MOVE. EASING OF DEBT PAYMENTS. Ottawa, May 26. Government and financial circles here view as a beneficial step the proposal of the United States to go off the gold Standard. It is expected that the action will make gold bonds held in the United States payable in United States currency. .. „ The effect on Canada, with more than £50,000,000 due in New York this year, is dependent on the extent to which the United States dollar may be inflated, and the relation of the Canadian dollar to the United States funds might be considerable.