U.S. FINANCE CRISIS

Hokitika Guardian, 9 March 1933, Page 5

U.S. FINANCE CRISIS

BANKING REFORM ATTITUDE TO GOLD STANDARD.

(United Press Association —By Electric Telegiapn—Copyright; NEW YORK, March. 7. Aside -from immediate dislocation grow rag out of toe banking ci-jbis, A.lie nation's. thoughtful attention is being directed towarus several more, important iO’,.'g-tiine aspects of the si.uimqn, these being .principally the United okwioi pTA.rtio.l wi ill regard to the gold standard, the' piioouem or a. conquJ.o banking syteiu reform, and an extensive ic-<i.ajusi.jnen,L. of tile public nuances.

It is predicted that the United States' will prefer to have a “managed currency,” possibly one under come system similar to that of the British” eunency, whereby its bullion will be reserved for inter national obligations. Some form of inflation, also, is considered more or lessi likely, irrespective of wliat gold policy the Govern, ment may announce after the temporary crisis is over. This may be achieved by the devnlorisation of the dollar, although official sources strongly disavow its likelihood. The question, it is believed, closely disavows the problem of preventing too rapid an increase of . internal prices, In regard to the question of banking reform, it is' clear from the point of view of the ordinary bank depositor that any reform must more particularly aim. towards 'restricting the inYestments by the banks to their depositors’ fund®, in order to avoid any speculative orgies in boom time. One of the greatest benefits expected from the .present crisis is the increased prestige and power that it will give to the new administration to force radical cuts in Governmental expenditure, thus easing the taxation, and leading to an improvement in business.

DOLLAR AT PAR WITH CANADA

DEALINGS IN U. 3. CURRENCY

OTTAWA, March 6

The United States dollar is considered at par with the Canadian dollar for ‘duty purposes during the present emergency, in the United States. The Canadian Government , decided . tonight on countermanding a previous departmental ruling fixing the linked States dollar a,s worth ia- dollar and 25 cents in Canadian funds.

Nearly all Canadian banks wefe doing business to-day..in United States currency on an over-the-counter basis at the usual premium rate on American dollar, fifteen per cent, for selling. All banks in Toronto' quoted the rate on London, a,s from four nineteen to four twenty-three.

• Despite spirited rallies, profit-taking furred wheat futures down seveneighths of r, cent, to-day, May closing at olf, July 52f, October 54.

AUTHORITY TO FEDERAL; BANK

NEW YORK, March 7.

Tlie Federal. "Reserve Bank here has been authorised by the Secretary to the Treasury, Mr Woodin, to resume making advances of currency to its members,'T~T~;vided that they deliver bo the Reserve Bank institution all of he gold and gold certificates which the banks own in their own right in return for other forms of currency. The New York State Legislature has approved of a plan launched by Governor Lehman for a State-wide issuance of scrip. WAR DEBT CONVERSATIONS. WASHINGTON, March. 7. Cbnd'itiionnil authority foo* the issuance of scrip oil- Friday, or other mediums of exchange by Clearing House Associations, was granted today by Mr Woodin. The live stock exchange at Chicago to-day, rescinded Monday’s order announcing that the exchange would close business. It will continue as usual. War debts and allied economic problems, it is understood, will be discussed by the British Ambassador ('Sir R. Lindsay) and the State De.•xli’tim'ent, on Tuesday.

U.S.A. EXCHANGE BUSINESS

WASHINGTON, March. 7

The secretary to the Treasury, Mr Woodin, late to-night authorised Federal Reserve Banks to conduct their normal and usual operations as fiscal agents of the United .State* in transactions pertaining to exchange obligations of the United States.