GOLD STEADY

Taranaki Daily News, 18 December 1933, Page 5

GOLD STEADY

DOLLAR SLIGHTLY LOWER

HEAVY STOCK LIQUIDATION

FOREIGN BUYING POLICY

SUPERVISION OF TRADING

TARIFF ACTION DISCUSSED

By Telegraph—Press Assn—Copyright. Rec. 7.30 p.m. New York, Dec. 16. For the fourteenth consecutive business day the gold price to-day remained at 34.01 dollars an ounce, on which the dollar declined moderately in terms of gold currencies and closed at 64.76. Sterling closed at 5.12, up three-quarters of a point. The franc closed at 61.4 J, up 2J points. For some unknown reason unexpectedly heavy liquidation developed in a short trading day on the Stock Exchange and prices were down one to three points on a turnover of 1,070,000 shares. Domestic bonds were off fractionally, while Government issues were up fractionally. Commodities were irregular and lower. The Associated Press understands that Mr. George Peek contemplates the organisation of a special corporation to handle all American foreign trade and private industry and the Government will share the capitalisation, which is likely to approximate a billion dollars. He would supervise production to be exported while the Government would undertake to negotiate tariff agreements to make such trade possible. It is emphasised that the plan is still in the formulative stage and that nothing definite has been decided.

The Reconstruction Finance Corporation has so far allocated 75,000,000 dollars for the purchase of gold. Of the first 50,000,000 dollars authorised on October 26 about 35,000,000 dollars was used for the purchase of foreign gold and 15,000,000 dollars for the purchase of newly mined domestic gold. The allocation of 25,000,000 dollars was made about ten days ago, a fact which is no longer interpreted to mean that no extensive purchases abroard are iipmediately contemplated. This latest appropriation definitely refutes widespread rumours that President Roosevelt has taken cognisance of Mr. Acheson’s opinion that gold buying was illegal and is withholding further purchases pending enabling legislation by Congress. Sir Norman Angell in a Press interview to-day suggested a return to the gold standard with a new ratio between the dollar and the pound. He admitted there was wide difference of opinion in the respective countries of what it should be, saying the British authorities thought the natural ratio somewhere in the region of four dollars, while he found Americans mentioning six and even eight dollars. “At some point you will have to stabilise by agreement,” he added. “There may be a reason which makes it wise to wait. The load of internal indebtedness must be reduced by either or both vast liquidation and inflation. I think both, in a degree will have to be employed.”