AMERICAN PLAN IN OPERATION

Timaru Herald, Volume CXXXVII, Issue 19670, 12 December 1933, Page 9

AMERICAN PLAN IN OPERATION

EFFORTS TO STABILISE CURRENCIES REPORTED SOUNDING OF BRITAIN United Press Association—By Electric Telegraph—Copyright (Received December 11, 7.5 p.m.) NEW YORK, December 10. The Washington correspondent of “The New York Times” states: A scheme for the dollar aad pound stabilisation has been proposed to the British fiscal authorities by the American representatives on two occasions recently. The appropriate parity suggested is not known, and nothing has yet developed from the proposals, as the British professed themselves unable to take up the matter effectively at this time, for a number of reasons which it is understood include: (1) Opportunity must first be given to France to come to some idea about the relinquishment of the gold standard and the point of devaluation of the franc. (2) The amount of expatriated American capital in London, which would flow home on stabilisation. (3) The pound stabilisation would turn the dole into an unknown budgeting quantity. (4) The British are not sure what parity would be suitable to domestic price levels. Why Britain Hesitates. It is further suggested that some elements in Britain do not consider President Roosevelt a sound money man. In any event they fear the inflation bloc in Congress. Meanwhile President Roosevelt feels, according to his close friends, that he cannot Justly be accused of delaying stabilisation. He contends his gold buying policy has definitely proved his ability to stabilise the dollar at about sixty-two cents; therefore in the Administration’s view, Britain and France are responsible for the delay in stabilising; Britain particularly, because, in the general opinion, the harnessing of the dollar to the pound would amount to the virtual stabilisation of International exchanges.

LEAKAGE OF OFFICIAL SECRETS. SENSATION IN WASHINGTON. United Press Association—By Electric Telegraph —Copyright WASHINGTON, December 9. There wus a sensation to-day, when it was announced that the Treasury was investigating complaints that the London market had been getting information about the price of gold four to eight minutes in advance of the Treasury's daily announcement. It is said that the price is fixed ‘ through telephone conversations between various officials, and the possibility of a "leak" is held to be all but impossible. Nevertheless, the matter will be investigated. HELP FOR AGRICULTURE PRESIDENT SETTLES DIFFERENCES. United Press Association —By Electric Tel egraph—Copyright NEW YORK, December 9. The Washington correspondent of the “New York Times” learned tonight that Mr Roosevelt had settled the Agricultural Administration dispute between Mr George Peek, the Administrator, and Mr H. A. Wallace, Secretary of Agriculture. It is understood that the former is willing to accept a special State Department post in charge of finding markets abroad for farm products in return for enlarged liquor quotas. Under the agricultural programme so far, since its removal from the Jurisdictim of the Agricultural Administration to the National Recovery Administration, three important codes having relation to farm products have been approved and will soon be invoked by the President. These include the retail food and grocery, and grocery manufacturing industries.

It is estimated that they will ( ring 500,000 concerns and 2,000,000 workers under the Blue Eagle. NO CHANGE IN GOLD PRICE. DOLLAR RAPIDLY LOSES GROUND. United Press Association—By Electric Telegraph—Copyright NEW YORK, December 9. There was again no change in the price of gold to-day. However, the dollar lost about 20 points against the franc, and closed 63.45 cents on that basis. Sterling was up 11 to a dollars 17 cents, and the franc was up two points to 6.171 cents.