HINT OF STABILISED DOLLAR

Timaru Herald, Volume CXXXVII, Issue 19673, 15 December 1933, Page 9

HINT OF STABILISED DOLLAR

STORMY PROTESTS BY SENATOR GROWING AGITATION FOR INFLATION United Press Association—By Electric Telegraph—Copyright (Received December 14, 7.30 p.m.) WASHINGTON, December 13. Senator Thomas revealed to-day that he had been informed that the New York Federal Reserve Bank was negotiating with the Banks of England and France for a stabilised dollar of about 62 cents. He immediately issued a statement denouncing stabilisation at any figure above 50 cents, and threatened an inflation fight in Congress if the President does so. Senator Thomas said that higher stabilisation would produce a terrible situation, and would probably result in the collapse of the President’s recovery programme. He predicted that the various elements of the inflation group would have a majority in Congress, but probably not enough to over-ride the Presidential veto. NO CHANGE IN GOLD PRICES. EFECT OF RECOVERY PLAN ON BUDGET. Onited Press Association—By Electric Telegraph—Conyrlgnt (Received December 14, 8.30 p.m.) WASHINGTON, December 13. The price of gold is unchanged. The dollar showed new strength on the London market. Budget Unduly Affected. Meanwhile the gold purchasing programme has become subordinate in immediate interest to the Budget preparations at White House. The Treasury needs for continuing the Public Works programme, and other relief undertakings, requiring continuous and even mounting outlay during the winter, is aggravating the Budget problems. Foreign Exchange Movements. In the foreign Exchange market the dollar went to a new high level in the current movement of 65.35 cents, in terms of the franc, which with sterling dropped, and commodities weakened as a drop in sterling caused a setting in rubber and silver and futures in grains and other staples. Wheat was 21 cents lower.