U.S. OBJECTS TO CANADIAN GOLD SUBSIDY

Chronicle (Levin), 8 December 1947, Page 5

U.S. OBJECTS TO CANADIAN GOLD SUBSIDY

I'ccci v('d SundaVj. 7.') p.m. WASlIIXGTOX, Dec. (J. Tliongli uu (illii-ial protcst )ias been regxsi (.rc, [ Ji was disi- ldscil today that ihe (YiiW'd Stati's l h itm «> h a lligli .Slate Depart meut ot'iii-ial has prute.Hed urally to the I'anadian Andiassador I Mr. llunu* W'nnig against Caaada's plan to pay its in i ueowners a premium of seven ilollars aa mun-e for iiiereased gold production. Watlington otficials upine that Uanada 's jdan would have an infiationary effect on I'nitcil State* econoniy and miglil lic a \iolation of the internanational nioiieiary agreemeut which set ihe world price at 35 I'nitcd States dollars au oum-e. They do not think the lionus vould constitute a basic increase in ihe jiricc of gold liut belicve it would increase tlic i'anadian offerings, llms lon-ing tlic f'nitcd Slates to huy more of tlic nictal it docs not need. lt is the Fedcral Ticasury policy to acccpt all the pold otfered at a set pricc lice; use if the United States suddeuly cea.-ed its purcha.ses there might he disas t j m- results in world trade, on the \ali.e of loreign currencies, and on the vali e ot Aniei'ica 's nw n gold hoard at Fori K no\ ; Kejituckv >.