GOLD STANDARD

Hokitika Guardian, 29 May 1933, Page 5

GOLD STANDARD

U.S.A; DEPARTURE PAYMENT IN LEGAL TENDER. J' (United Pr efiS Association—By Electr Telegraph—Copyright.) WASHINGTON, May 26. * The President has requested. 31 I Steagall, chairman of the House Bank ing Committee, to introduce a.resolu | tion plncihg' the United States off th gold standard by law. ; ' Mr Steagall said that the re"olutio; would repeal the Gold Standard Act /"""No bonds, or. obligations' of the Uni .yf ted States • Government, and- no obli gations of any form would have tc be paid in gold, or gold currency When the measure was enacted i 1 would b'.' l possible for foreign debtor; , to nav their war debts to the United / States in- airy legal money, ‘ and it /V - Would make it unnecessary'to de'valu--JR ate the. void dollar under the Farm / Relief Act inflation provisions. ' A very large part, if not tire greater part, of the indebtedness cf companies of- nil 1 kinds, local authorities and governments in the United States is fixed exrdieity in terms of gold. In : n,ume.rabfe- AniHHoan ' bonds define the amounts due in such phrases as ‘payable -ip' United States gold coin of tho present standard of valued The United States House of RepreThe Unitaed States House of Representatives’- Banking Committee Bill for outlawing the “gold clause” of contracts;'and for' making all - contracts, both private and public, payable in legal tender money, A ciause limiting the deductions in respect of capital losses to one year for income-tax returns was approved bv the House Ways and Means . Committee to-day. Since President Roosevelt has now officially dropped the gold standard, by refusing to allow the export of gold from America there is much confusion regarding the payment of interest to the Government 'bondholders of America and particularly .the. iriterets on bonds held abrpad. • (Mr Woodin, the Secretary 'to, the Treasury, Has issued a statement explaining that w-hiie qne.. Court has al 7 , ready upheld thar Government's right to pay in “other .lawful, fprms 'of nmney,”- it ' Aarf‘de-sired thtvh there should be' clarifying legislation so, aa, to prevent ’any -confused legal eonlitiructiion * iff other jurisdictions, Mr Wcodin added that all. future obligations, both public and private, would not contain the gold"clause..,

EFFECT, ON STOCK. EXCHANGE. STOCKS SWEEP UPWARD. :. ‘ , NEW ■ YORK, May ’ 27. To-day,: in oiie of‘the largest Buying waves for. a Saturday session in years, Stocks swept I 'upwards, and they closed tk gains, ranging f wtti '-one^o *bigift' points or a TVY" Wall Street 'buzVed' witlEthe possibility of the establishment-bere--of—an open gold market, thus permitting the price of gold to: advance"’ above- the' legal level following on the proposed voiding of the. geld clause in’ and private obligations. The gold Issue in a wild flurry of buving, swept through virtually all categories, shates and commodities surging up in sympathy.

DEPARTURE IS BENEFICIAL

CANADIAN CIRCLES’ OPINION. OTTAWA, May 26. Government and financial circles here view rig a beneficial step the proposal of the United States to: go off the gold standard. It is expected that this , action will make, gold bonds held in the United States payable in United 'States currency.- Tho .. effect on Canada, with more than 250,000,000 dollars due in New ;York this year, ,is dependent on the extent of which the United States dollar njay be inflated and the relation of the. Canadian dollar to United States funds. WINNIPEG PRICES RISE. WINNIPEG, May 27, An opening ;.surge of buying here to-day sent-.wheat futures soaring into higher ground, and at the close of the day they maintained gains of 2J-. and 2,1 cents per .bushel. •. Wlieat for. May delivery closed at 65 cents per bushel ; July flp ,1-8 centsp Octo'ber 67-1 cents, and December cents. ■ a ' CHICAGO:, GRAIN; PRICES. NEW YORK, May 27. Chicago wheat opened: to-day foui cents oer -bushel higher, ~.The price reached slightly to close at-.2, to 3 cents higher; Corn dosed one to and three-eighth cents higher.