INFLATION FEARS IN U.S.

Star (Christchurch), Volume LXIV, Issue 940, 9 December 1933, Page 1

INFLATION FEARS IN U.S.

Economists Urge Return to Gold Standard. United Press Assn.—By Electric Telegra ph—Copyrigh t. WASHINGTON, December 7. From Princeton, New Jersey, it is announced that ten University professors of economics, including Dr E. W. Kemmerer, to-day advocated international improvement and an early return to the gold standard. They expressed concern over the consequences of inflation, which would harm working people and persons and institutions with fixed incomes more than all others, though it would also be harmful to the nation as a whole. General Hugh Johnson, Director* of the N.1.R.A., addressing the National Association of Manufacturers, warned critics of the Roosevelt monetary policy that they might goad Congress into issuing fiat monev and denied that the poliev in anv way indicated “uncontrollable inflation.” Codes Filed. It is announced that to date 120 ft codes have been filed with the N.1.R.A., 382 having progressed through public hearings and 143 having been signed by the President. It is announced that Finland, hitherto, will pay the full amount, 229,623 dollars, of its war debt instalment due on December 15. It is announced that purchases of domestic gold have totalled 354,00007, valued at 11,350,000 dollars. Commenting on reports that the United States had ceased making foreign purchases, an official said that the total European purchases were “hardlv enough to make a good bridgework for your mouth.” Issue Oversubscribed. President Roosevelt to-night announced the closing of the book of 950.000.000 one-year Treasury certificates of indebtedness, carrying 2i per cent interest, w’hich was opened yesterday. the issue having been heavily oversubscribed. The Reconstruction Finance Corporation has announced that it has authorised the purchase of preferred stock on capital notes in 1293 banks, totalling 425.000,000 dollars. The foreign exchange market in New York moved over a comparatively narrow range. The gold value of the dollar against the franc rose to 64.38 cents. The franc and sterling fell to 6.10 cents and 5.11 dollars respectively. The stock market to-day continued its slow but persistent advance. Ignoring the firm tone of the stock market, commodities continued to see-saw in dull trading. The Government announced that wholesale commodity prices continued the downward movement of the previous week, being 0.4 per cent lower for the week ended December 2, the wholesale index number standing at 70.7, with 100 for 1926.