WILL NOT INFLATE.

Star (Christchurch), Volume LXIV, Issue 939, 8 December 1933, Page 1

WILL NOT INFLATE.

U.S. Treasury Sets Rumours at Rest. ISSUE OF CERTIFICATES. United Press Assn.—By Electric Telegraph—Copyright WASHINGTON. December 6. The Treasury Department to-day put to rest rumours that an issue of fiat money or other means of currency inflation would be employed in meeting maturities totalling 727,000,000 dollars of Government securities due on December 15. The Treasury announced that it would meet its obligations through offering 950,000,000 one-year certificates of indebtedness, carrying 21 per cent interest, which is the highest the Government has paid since 1931 except during the March banking crisis. It is said at the Treasury that deposits under the gold purchase plan and a survey of the credit situation showed that the certificates would be attractive to purchasers. Heavy oversubscription is expected. The Government’s credit expansion plans are continuing on various lines, as was indicated by an announcement of the Comptroller of Currency that 61 per cent of all the national banks which remained unlicensed after the “ bank holiday ” had now’ been “ .ieensed, chartered, absorbed, or placed in receivership.” Currency Market.

The gold price is unchanged. The London price of bar gold, on the basis of the opening sterling quotation of 5.17 J, was 32.84. The dollar wavered and the exchange markets were moved apparently by diverse influences, but kept within a comparatively narrow range. Sterling weakened as the day progressed. The stock market maintained an undertone of strength and finished steady, with prices irregular. The dollar closed at 63.91 in terms of the franc, a gain of 1-3 cents. Sterling was off cents to 5.121 dollars. The franc was quoted at 6.13 cents, compared with 6.17 A cents yesterday. Despite losing early gains through profit-taking, wheat closed unchanged to up J cent.