AMERICA AND GOLD

Waikato Times, Volume 113, Issue 18927, 22 April 1933, Page 6

AMERICA AND GOLD

STOCKS SKYROCKET,

AVALANCHE OF BUYING.

SHARES PUSHED U-P,

Dnlted Press Assn.—Elec. Tel. Copyright. NEW YORK, April 20.

Heavy buying poured into the Stock Exchange at the opening, pushing prices of numerous shares one to- two dollars higher. Silver soared two tcthree cents an ounce.

Profit taking in late trading reduced gains by about half after an avalanche of early buying had sent prices up one to nine points. Billions were added to quoted values of stocks and staples. British currencies continued to skyrocket, the nominal opening quotation for the pound being 3 dollars 89 cents in United States funds, and the Canadian dollar 89i cents. French francs rose approximately one-fifth of a cent to 4.-14 cents. Other currencies also rose. By noon British currencies had receded slightly, the pound being quoted at 3 dollars 86 cents, four cents under the day’s high level.

THE GERMAN VIEW.

EFFECT OF DEPRECIATION.

HOLLAND REMAINS ON GOLD

United Press Assn.—Elec. Tel. Copyright. BERLIN, April 20.

' Financiers associated with the Reichsbank consider the fluctuations of the dollar cannot touch the dollar exchange in the long run. America is the world’s greatest creditor and therefore the continuous demand for dollars will maintain the dollar quotation near parity. America’s action is neoessary tc- prevent the irregular withdrawals of gold. It is unlikely to affect German currency which has stocks of foreign currency adequately protected, but the lasting depreciation of the dollar would decrease German exports and possibly necessitate a moratorium.

HAGUE, April 20. Holland Is not likely to abandon the jpold standard.

CANADA A GAINER. ADVANCE IN ALI* STOCKS. United Press Assn.—Elec. Tel. Copyright. TORONTO, April 20. The close of the Canadian markets to-day brought an optimistic picture with rises right down the line and nothing to- discredit the general opinion that financial and industrial circles in Canada -will be -gainers by the United Sates gold action. In Toronto the general list closed near the day’s tops after the most exciting day experienced in four years. The pound pursued its upward course all day, closing at 4 dollars 39f cents <m Wednesday, opened at 4 dollars 41J cents on Thursday and climbed gradually to 4 dollars 35 MONTREAL, April 20. It is reported that wide gains were recorded in stocks, though prices at the close were below the day’s top quotation. RECIPROCAL TRADE. MR BENNETT MOVING. OTTAWA, April 20. With the, exchange stumbling block largely removed, Mr R. B. Bennett, the -Federal Prime Minister, reported that he Is drafting definite reciprocity proposals to be made to the United States «t the Washington Conference. -i t WASHINGTON PARLEYS. SCOPE GREATLY ALTERED. BY" AMERICA’S MOVES. United Press Assn.—Elec. Tel. Copyright. S.S. BERENGARIA, April 20. As soon as Mr Ramsay MacDonald learned that the United States had gone off the gold standard he consulted Sir Frederick Leigh-Ross, the chief economic expert of the British Government. Mr MacDonald refused to comment cn the matter. It is understood however, that (he British mission feels that, the situation with respect to the MacDonald-Roosevelt conversations in Washington, has been considerably altered.

CURRENCY INFLATION. BILL BEFORE THE SENATE. DRASTIC PROPOSALS. United Press Assn.—Elec. Tel. Copyright. WASHINGTON, April 20. A drastic bill tu grant President Roosevelt authority to expand both currency and credit and to decrease '■he gold value of the dollar was put Before the Senate late to-day on behalf of the administration, and action upon it to-morrow is virtually assured. The inflation amendment to the Farm Bill as completed by the Democratic leaders, would authorise the Treasury to enter Into an agreement with the Federal Reserve system for the purchase of 3.000,000,000 dollars in Government obligations in an addition to those already held. The bonds would bo held in reserve systems in portfolios for agreed periods' of time.