GOLD PRICE RISE

Wanganui Chronicle, Volume 76, Issue 286, 4 December 1933, Page 7

GOLD PRICE RISE

EFFECT ON MARKETS. NEW YORK, Dec. 1. Foreign exchange and stock markets again paid only brief attention to another advance in the price of gold. With the first posting of the new 1 figure the dollar fell 4U points to 62.88 ' cents, but thereafter recovered. The ' weakness of the franc was attributed principally to uncertainty over the , French financial outlook and Canadian ' sales of sterling in London for profit taking. The dollar was stronger than would otherwise have been the case. To-day the stock market after a mild display of strength early in the day drifted mcaninglessly to the close. United States Government bonds were steady in a dull market. There were . moderate gains in commodities, with - the exception of wheat, which fell be- ( low Wednesday’s close.

DOLLAR AND GOLD AMERICA’S PUBLIC DEBT Received Dec. 3, 6.25 p.m. WASHINGTON, Dec. 2. The price of gold was unchanged today. The dollar was valued at 63.77 against the franc, and sterling closed at 5.18 J. Other principal exchanges declined against the dollar. Shares on the New York Stock Exchange fluctuated over a narrow range. The Treasury announced the closing of the conversion loan, which is tho fourth “Liberty’’ bond issue. Only approximately 900,000,000 dollars of the 1,875,000,000 dollars is outstanding, having been turned in for a new ten to twelve-year Treasury issue. It is announced that the public debt of the United States stood at 23,534,000,090 dollars at the end of November, which is the highest point since 1921, when it was 23,977,000,000 dollars, and compared with tho peak of 26,596,000,000 dollars in August, 1919. The Government deficit at the end of November was 772,000,000 dollars compared with 1,151,000,000 a year ago. All but 80,000,000 dollars of the current deficit is for emergency purposes. An interesting sidelight on the gold situation was revealed when it was disclosed that although new-mined gold is taken by the Government at 34.01 dollars an ounce, old gold in the jewellery trade in New York has a buying price of only 21.60 and a selling price of 25.50. This is duo to the fact that gold brokers can sell their accumulation only to the licensed jewellery trade. It is alleged that a considerable illicit export of gold has been encouraged as a result of efforts to secure the better world price. It is understood that the Government will be petitioned to allow an open market for the metal in the United States, and so obviate tho, anomaly.

REPLY TO MR. SMITH MANY MORE EMPLOYED WASHINGTON, Dec. 1. To-day’s important news of the American recovery plan includes the following:— (1) Further Smith criticisms of the Government works programme, which ho characterised as an attempt to cover up the breakdown of the public works administrations and the costly “alibi”; (2) Federal Administrator Hopkins reported nearly 2,000,000 persons had been put on the «civil works payroll since the first week’s operations; (3) Mr Ickes charged Mr Smith with “nourishing a grudge,” asserting that both the public works and civil works administrations were, functioning efficiently. He added that the public works administration had just allotted 26,543,000 dollars for 71 new non-Federal projects in 25 States. (4) Mr Johnson stated that the N.R.A. codes, regulating labour in the telephone and aluminium industries, whkdi arc almost monopolies, would be imposed if necessary; also indicating that Labour might be given representation on the authoritative code boards. (5) To-dav a petrol company and two individuals pleaded guiltv to violation of the N.R.A. code. The petrol industry was fined a total of 400 dollars. VICTORY FOR FORD WINS N.R.A. CONTEST GIVEN GOVERNMENT CONTRACT Received Dev. 3. 7.10 p.m. WASHINGTON. Dec. 1 Mr Henry Ford appeared tonight ns a complete victor over General Johnson in the latter’s attempt to prevent the manufacturer from bidding for government automobile contracts because of his alleged non-compliance with the N.R.A. Mr Walbvce announced acceptance of a bid of 700 Ford lorries for the Civilian Conservation Corps. This is considered the beginning of the end of the contest between the N.R.A. and Mr Ford.