GOLD STANDARD

Waipukurau Press, Volume XXVIII, Issue 99, 21 April 1933, Page 3

GOLD STANDARD

America Goes Off CHANGE PRESIDENTIAL. POLICY MR ROOSEVELT’S ATTITUDE By Telegraph.—Copyright—Press Assn. WASHINGTON, Last Night. The official dropping of the gold standard to-day is viewed in informed circles as a prelude to extraordinary measures to regain lost foreign markets, to effect a debt readjustment and to raise commodity prices, which, if accomplished, will inevitably be at least at the partial expense of the socalled depreciated-currency countries. Mr Roosevelt formerly opposed “ tinkering with currency,” but in the opinion of his friends the results of the domestic relief legislation —farm relief and public works —have been disappointing. Furthermore, deflation has taken place in the last month and frozen assets closed in the banks, totalling from sir to eight billion dollars, have produced a condition where, with competition from foreign countries which are off gold, it appears necessary to meet the situation with a modified currency. It is believed that powerful bargaining material exists for the conferences with England and other countries, but the immediate anxiety is to halve the ruinous domestic deflation.

NO GOLD FOR THE DOLLAR EXCITEMENT IS CAUSED RUGBY, April 19. Messages from Washington to the effect that the Administration will not support the dollar abroad by means of shipments of gold created considerable excitement this evening in foreign exchange circles in London, where the sterling-dollar ratQ fluctuated freely and at one time touched 3.62. It finished at compared with 3.49 at Tuesday’s close. BANKING CIRCLES SHOCKED DIFFERENCE IN MOTIVES LONDON, Last Night. The “Financial News” says: “The news of developments in the United States currency policy will produce full effects on the markets, but it came as a great shock to banking circles, where it had been hoped that America would not deliberately wreck her currency. “The move generally is condemned as an act calculated to aggravate the crisis to throw the world back into chaos at a moment when it was hoped that, through the Economic Conference, stability was in sight. “Britain went off gold having spent every penny of her gold reserve to enable her to secure further credits; America has gone off while still in possession of gold with which she could easily have maintained stability of her currency. She has not been driven by necessity, but has taken the step in cold blood.”

U.S. EXPORTERS PLEASED RECAPTURING FRUIT MARKET SAN FRANCISCO, Last Night. Fruit-export circles here were elated as the pound sterling rose, and, by the same token, the ability of British buyers to purchase California’s dried, canned and fresh orchard products. The United Kingdom is California’s best foreign customer, but California of late has found Australian competition in the British markets a restricting. factor. The rise in the pound has tended to cut down the advantage Australia gained when Britain dropped the gold standard.