BOOST FOR SILVER

Wanganui Chronicle, Volume 76, Issue 303, 23 December 1933, Page 9

BOOST FOR SILVER

ROOSEVELT S DECISION PURCHASES IN AMERICA HIGHER WORLD PRICE? EFFORT TO AID TRADE (By Telegraph -Press Association—Copyright) Received IDec. 22, 10.50 p.m. WASHINGTON, Dec. 21. Mr. Roosevelt to-night formally ratified the London silver agreement and ordered the Government to purchase metal at 641 cents an ounce, which is half the legal price and about 19 cents above the current market rate. * ‘ This proclamation,’’ said the President, “is in accordance with the Act of Congress, and opens our mints to the coinage of standard silver dollars from silver hereafter produced in the United States or ite possessions.” Half of the silver presented will be coified at the statutory price of 1.29 dollars an ounce, and that the remaining half “surrendered to the Treasury ns seigniorage, and to cover usual charges and expenses.” It is estimated that about 24,000,000 ounces will be purchased annually. This figure approximates the amount stipulated in the London Treaty which America will buy annually. It is understood that Mr. Roosevelt decided to ratify the agreement following India’s acceptance. Silver advocates are jubilant at the President’s action. Senator Pittman, author of the silver agreement, declares that exports to oriental and other countries with a silver base will be greatly increased. “The action of the United States will be followed by Canada, Australia. Mexico and Peru, and undoubtedly will stabilise the price of silver throughout the world at 64$ cents until some further action is taken to raise it higher,” said Senator Pittman. Observers are agreed that the President has done much to muzzle the Congressional inflationists. Foreign exchange circles have been taken completely by surprise as a result of Mr. Roosevelt’s remoritisation of silver announcement. One silver expert declared that since the United States produces currently only about one-sixth of the world’s production of silver, the effect of the purchases upon the world price is likely to be no greater than have been the effect of the Reconstruction Finance Corporation’s purchase of newly-mined gold upon the world gold price. The question immediately arises, therefore, whether the present announcement may not be the forerunner to purchases of silver produced abroad. It is predicted that the immediate market response is likely to be strongly-rising prices, but it is doubtful if they will hold unless followed by authorisation for purchases abroad. GOLD PURCHASES MOBE FUNDS ALLOCATED. Received Dec. 22, 11.5 p.m. WASHINGTON Dec. 21. The Reconstruction Finance Corporation to-day allocated another 25,000,000 dollars for the purchase of gold. It is indicated that about 60,000,000 dollars have been expended, 6,000,000 for domestic purchases and 45,000,000 for foreign purchases. TRANSPORT STRIKE DISPUTE IN PHILADELPHIA. Received Dec. 22, 11.55 p.m. PHILADELPHIA, Dec. 22. The city is faced with a general ' transportation tie-up as 27,000 taxidrivers and draymen struck early this i morning. “In defence of the N.R.A..” : it is urged that the Transit Union join i in, stopping the street cars and underground lines as well. The unions have promised deliveries of food and coal for hospitals and welfare agencies, but otherwise they have ordered a complete stoppage of such necessities. The N.R.A. Board from Washington made a last-minute appeal to withhold action, but the strike leaders declared that the taxi industry had defied 1 the board in the strike negotiations 1 and labour had nothing to do but to defends iits rights through a united strike. THE BLANKET CODE EXTENSION ANNOUNCED WASHINGTON, Doe. 21. President Roosevelt to-day an nounced the renewal of the blanket code for four months after January 1. He stated that “fair competition” j tion” agreements now cover 70 per £ cent, of all employees of which It is > applicable and he hones the remainder j will be covered by January 5. “ TO FAT TO FIGHT ” 1 1 OVER-VALUED DOLLAR Receive Dec. 22, 9.5 p.m. t WASHINGTON, Dec. 21. The gold price at Washington remaining unchanged, foreign exchange trading was fairly steady here to-day. with small changes in prices. The dollar lost in early trading and then gained. Wall Street is greatly amused at Senator Thomas’ observation: “In February, 1933, the dollar was worth 200 cents. Because of this excess value dollars were too fat to fight, too lazy to work and too timid to circulate.” i The stock market was steady to-day. T Bonds generally were higher, grains de- s dined and cotton was dull n nd wen, 1 IrtP other commodities were steady. r