U.S. GOLD PURCHASE

Hokitika Guardian, 28 October 1933, Page 5

U.S. GOLD PURCHASE

LITTLE EFFECT ON WORLD PRICE OF METAL (Per British Official Wiieless.) RUGBY, October 27. “The Times’ ” city editor, commenting 011 the American Government’s new gold policy, says: "ity long .'as the American .purchases of •gold at the prices stated by the Reconstruction Finance Corporation arc confined to the gold newly mined in vhe United States, the market expects that the .American price fixation will have little, if any, effect on the world price of gold, even though the American price may, at times, be above the London price ; for, in that event, the Government would simply be paying .a bonus to the gold producers. It is unlikely that the American Govei'nI meait would sell gold, although it has the power to do so, since such selling would have the effect of increasing the demand for dollars. That would cause an appreciation in their gold value, which, apparently, is what the President desires above all to avoid.” GOLD PURCHASE AUTHORISED. WASHINGTON, October 26. Mr Roosevelt issued an executive order authorising the purchase, of new-■ • .ly-mined gold by the United States ; Reconstruction Corporation in accordance with the managed currency plan. The order revoked the previous ruling, so ?.s 1° permit the export of manufactured articles fabricated from gold.