FORIEGN GOLD

Hokitika Guardian, 31 October 1933, Page 3

FORIEGN GOLD

’ U.S.A. TO EXTEND PURCHASES. CHEAPENING DOLLAR ABROAD .United Pres*,. Association—By Eiectrio Telegraph—Copyright, j ! -WASHINGTON, October-29. It is announced thatr the American Government will; make purchases of . gold-abroad, asv a, secona step in Mr ; itooseveit’s recently indicated financial. policy. Gold purchases will bo made oversea through units to be .pet up by the 11.F.C., for which the Federal Reserve -Rank will act as agents abroad, it is intimated that, the first purchases will: not. be large, and that a monetary w«u\ with otner, countries will not- be invited. It is. indicated that the Government will consult the Dank of England; and; that. American buying in the London market will not be objectionable to the British Government. White House declined to explain the ultimate object of the step. It . is-their belief it will lead to the stabilisation of : 'both the dollar and pound, at a. ievei ,acceptable-', to berth Governments. Opinion concerning the meaning and intent of-President Roosevelt’s second step was as much confused to-night as it was over the' previous step taken a, week ago.- Demands were made on all sides' that the' 'President should clarify the position. 'Democratic Party politicians, such as Senator Tliorhas- said that this step would- be tantamount 'to selling dollars, and-’that iff Would have the desired effect’. 1 ' Senator Fess- declared that the cheaipeiing of the dollar abroad will probably, permit foreign purchases of American goods at much reduced prices in the terms of foreign ,currencies, but it would-not raise the domestic prices of goods. Some commentators on the gold buying, principally economists, have envisaged the gravest sort of conse- , quences if the American purchases of gold abroad were not linked with international understanding. These commentators-, predicted that without understanding,Lthere-, would‘be either, gold embargo'es,;. or, an Anglo-French bloc,, or- the .forcing of France to - de-valuate,--her own . currency, or-:.:the-; wholesale: ■ deipogalisation of foreign ' etui^;. * .The most-.:pessimistic, as it was-the ■lea.st supported, comment was that the. President possibly, would use the event, jf the /purchases fail, to have effect, to justify . direct, currency in--flatiopv,-;] miic; v/. ■ The possibility of a three-corpered; international contest „ in-, the: worlds monetary-ma'rltets',- among Bri-tain>* 'France and the United States, is notedby some observers*. ; j Some, quarters feel that tbe international currency contest will quickly er«h-theyfree; gold markets fin -anjx important . enuntryv. arub.wjll bring about .' wojldrwide, ?a:esfa*ictions,.,- : on , currency' dealings,' which would mean the end- ; of the international;gold- standard as it : had . .previQusfcji..existed, 'with: chaotic, international monetary conditions likely* to;'.result-.'- AD h-M-MM-