PRICE OF NEW GOLD

Evening Post, Volume CXVI, Issue 102, 27 October 1933, Page 8

PRICE OF NEW GOLD

RAISED IN WASHINGTON

DEVICE TO DEVALUE DOLLAR

NOT WORKING TOO WELL

United Pro-s Association—By Electric . Telegraph—Copyrlcht (Received October 27, 2 p.m.) WASHINGTON, October 26. The price of newly-mined gold was raised to 31 dollars 54 cents an ounce, 18 cents above tlio first Treasury quotation yesterday, and approximately 50 cents above the- world prico in London, where it had fallen sinco yesterday. The Administration further announced its intention to maintain steadily a higher price for gold than is available- elsewhere, and that there is unlikely to be any decrease in price, unless the speculative markets show a tendency to "run away." No gold has actually changed hands, and it is more strongly indicated that the purchase policy is only a device to devalue the dollar, yet the device did not work smoothly today, the dollar rising to 66.91 cents against the franc, which is'approximately 1J cents higher than the Treasury, gold figure would make it.' The gold purchase plan has also had the effect of minimising dollar fluctuation against foreigu exchange. The pound sterling, for instance, being quoted at 4. dollars 73J cents, or approximately what it was _ yesterday. The gold plan has likewise failed to continue to buoy up the domestic markets, as it had done since the first announcement. Leading stocks in New York lost one to four points, gold shares dipping with the rest of the list. Wheat was off about two cents in Chicago, other commodities also reflecting a recession. • At Chicago wheat futures were:— December, 85} ceats; May, 88 3-8 cents; July, 85^. Mr. Henry Wallace, Secretary for Agriculture, announced today that about 80 per cent, of American wheat farmers had promised to reduce their acreage in the Agricultural Adjustment Administration's campaign, receiving a Federal bonus •of approximately 102,000,000 dollars this autumn and next summer. The. Farm Credit Administration has also purchased 6,800,000 bushels of wheat for the Federal Belief Administration. It is stated that 570,263 farmers have signed applications to carry, out the 15 per cent, reduction in wheat, acreage, or .7,788,000 acres for the 1934 crop.