“WE ARE ON OUR WAY ”

Timaru Herald, Volume CXXXVII, Issue 19628, 24 October 1933, Page 7

“WE ARE ON OUR WAY ”

BOLD STROKES IN AMERICA PRESIDENT ROOSEVELT’S 1 NEW PROPOSALS United Press Association— By Bleetrle Tel egrapb —Copyright (Received October 23. 5.5 p.m.) WASHINGTON. October President RoosCvelt on Sunday night announced the creation of a Government market for gold and the easing of the gold embargo, in telling the United States of his recovery policies, with the firm assertion: “We are on our way.” PRESIDENT’S PLAN EXAMINED. SUGGESTED STABILISATION OF DOLLAR. WORLD WIDE EFFECT OF NEW POLICY. United Press Association— By Electric Tel egraph CooFrigh t (Received October 23. 10.15 p.m. 1 ! NEW YORK. October 23. President Roosevelt’s announcement ; is interpreted here as indicating that the United States would, in effect, conduct its own equalisation fund, to control the dollar, as the British have been cohtrolling sterling. The fixing of the price at which newly mined gold would be purchased by the Reconstuction Finance Corporation, it was understood here, would permit the fixation of the definite internal price of gold, quite apart from foreign markets, thus having the objective of preventing sudden depressions in commodity prices in the United States, through sudden rises in the dollar in the foreign exchange market, such as that of the past three weeks. One economist suggested that the new plan may have a definite bearing on ! the British war debt negotiations, Britain having vital Interest in the ratio of sterling to dollar. Another factor in establishing the definite control over the dollar, it was suggested, might be uncertainty over the ability of France to stay in the gold standard. The United States dollar has risen this month in terms of the French franc. CONTROL OF CURRENCY SOUGHT PRESIDENT ROOSEVELT OUTLINES MONETARY POLICY. United Pres* Association—By SI sc trie Telegraph—Copyright (Received October 23, 9.15 p.m.) ■ WASHINGTON, October 23. Standing firmly by his recovery programme, the President gave an assurance of an Increase in agricultural prices. He promised the maintenance of Government credit, and a sound currency, and announced that the dollar would be revalued after the restoration of the prloes level. President Roosevelt put up the ration of the Government market for newly mined gold, under the Administration Reconstruction Finance Corporation. “Whenever it is necessary, to the end in view,” the President said, "we shall also buy or sell gold in the world s market. This is a policy, not an expedient. It Is not to be used merely to offset the temporary fall in prices. We are thus continuing to move towards a managed currency. My aim in taking this step is to establish and maintain continuous control. Government oredlt will be maintained, and a sound currency will accompany the rise in American commodity price level. Plans to Buy Gold. President. Roosevelt authorised the Reconstruction Finance Corporation to buy gold newly-mined in the United States, at prices to be determined from time to time. “Our troubles will not be over to-morrow." the President said, “but we are headed in the right direction. Obviously, and because hundreds of different crops in the huge territory, that make up this nation, are involved, we cannot reach the goal in a few months. We may take one, two or three years.” Success Claimed. Citing the N.R-A. accomplishments, the President said that the unemployed had been reduced by 40 per cent., with the re-employment of four million, who had been idle, and that the average farmer will receive one to three times more money for hie crops this year, than last. The President made no direct reference to the situation in the farm area, but stated. that although the prices of many products on the farm have gone up, and although many farm families are better off. than they were last year, he was not satisfied, either with the amount or the extent of the rise, and it was definitely part of the policy to Increase the rise and extend It to those products which have as yet felt no benefit. He asserted that when the price level has been restored, they would seek to establish, and maintain the dollar, which will not change Its purchasing and debt-paying power during a succeeding generation. The Dollar’s Stability. Complaining of the susceptibility of the American dollar to International Influences, President Roosevelt emphasised that “the United States must ■ take firmly into its own hands, the control of the gold value of the dollar. I This was necessary in order to prevent S gold disturbances from sweeping us

away from our ultimate goal, namely continued recovery of our commodity price*.” Strongly backing the national recovery - administration, the President declared that In the vast majority of cases, and In the vast majority of localities, the N.R A. has been given support In an unstinted measure.