BUYING GOLD IN AMERICA

Timaru Herald, Volume CXXXVII, Issue 19632, 28 October 1933, Page 17

BUYING GOLD IN AMERICA

IS MANAGED CURRENCY PLANNED? PROSPECTS REVIEWED BY ENGLISH PRESS British Official Wireless (Received October 27, 5.5 p.m.) RUGBY, October 26. The city editor of “The Times,” commenting on the American Government's new gold policy, says: “So long as the American purchases of gold, at the prices stated by the Reconstruction Finance Corporation, are confined to gold newly-mined, in the United States market it expects that American fixation will have little if any effect on the world price of gold, even though the price may, at times, be above the London orice, for in that event, the Government would simply be paying a bonus to the producers. It is unlikely that the American Government would sell gold, although It has power to do so, since such selling ■would have the effect of increasing the demand for dollars. That would cause appreciation in their gold value, which apparently is what the President desires above all to avoid.”

PRESIDENT’S DECISION. managed currency plan. United Press Association—By Electric Telegraph—Copyright WASHINGTON, October 26. Mr Roosevelt has issued an Executive order authorising the purchase of newly mined gold by the United States Reconstruction Corporation, in accordance with the managed currency plan. The order revoked the previous ruling, so as to permit of the export of manufactured articles fabricated from gold.