OFF GOLD STANDARD

Waikato Times, Volume 113, Issue 18925, 20 April 1933, Page 7

OFF GOLD STANDARD

AMERICA'S POSITION.

PRESIDENT’S ACTION.

MINISTER’S ANNOUNCEMENT.

United Press Assn.—Eleo. Tel. Copyright. (Received April 20, 12.30 p.m.)

WASHINGTON, April 19

* Mr William Woodln, the Secretary of the Treasury, states that the aotlon of President Roosevelt In forbidding the export of gold has sent the United States off the gold standard. RAISING COMMODITY PRICEB. GOLD EAIBARGO RESTORED. OTHER STEPS CONTEAIPLATED. United Press Assn. —Eleo. Tel. Copyright. (Received April 20, 9.30 a.rn.) WASHINGTON, April 19. President Roosevelt announced today the restoration of the gold embargo as a move to improve domestic commodity prices. The restoration is to be effective immediately. This is the first step in the campaign the President has undertaken, to establish a controlled price level and controlled credit to counteract deflation.

Additional steps are in prospect, but their extent will not be determined until the effect' of to-day’s move is known. President Roosevelt has apparently won a respite from ihe leaders in Congress, who have been hammered for outright currency inflation. He wants the price level raised in such a manner that it will he under control at all times and not permitted to go too high. The forthcoming international economic discussions are part of a general manoeuvre to restore the United States to a nornjal basis of available cash jobs and credit. The President hopes • to get the world back on the gold standard. This standard may he on a different gold ratio ■ with respect to currency, than in the past, hut ho is adamant for the stabilisation of the world monetary situation.

The giving up of the attempt further to support the American dollar in foreign exchange Is regarded as serving a dual purpose, namely, increasing American commodity prides and putting the President in a strategical position for economic bargainings. Just how the gold embargo will react to raise American commodity prices is somewhat involved. It was explained that cotton, for Instance, is sold on a -gold basis. On the present basis the rate is about six cents per lb. Should the price of gold fall 10 per cent a resultant increase in the price of cotton of 10 per cent is regarded as inevitable. A public works programme Is also contemplated by the President to stimulate employment, but it is likely the plan will not be anywhere near the -J,000,000,000 or 5,000,000,000 dollars advocated in some quarters.

STILL SOARING.

EMPIRE CURRENCIES,

STERLING AND CANADIAN DOLLAR

United Press Assn. —Elec. Tel. Copyright. Received April 20, 12.30 p.m.) NEW YORK, April 19.

British currencies continued to climb steadily upward in foreign exchange. This morning the pound opened with an overnight jump to 3 dollars 55 5-8 cents (a gain of 4J cents), and by noon it had skyrocketed to 3 dollars 60 cents. The Canadian dollar advanced fiveeighths overnight to 85 cents.