DANCING DOLLAR

Hokitika Guardian, 18 November 1933, Page 5

DANCING DOLLAR

AMERICAN BUYING

ROOSEVELT ACTING ON THEORY

(United Press Association—By Electric telegraph—Copyright;.

LONDON, November 17,

“The dancings dollar” is a phrase now seen even in the staid financial •columns. A lengthy editorial in “The Times” reviews-the position. It says: There is certainty' in regard to what President Roosevelt intends to do. Tile “commodity dollar” school hold that the level of American prices is mainly determined by the gold value of the dollar. President Roosevelt is acting on tliat theory. lie is now buying gold at fancy prices in dollars, in order to depreciate the value of the American money, •and thus achieve the desired rise in pa-ices through the working of the exchanges. This, at any rate, is the explantaion suggested by’ his pronouncements. There is a more disquieting version current 'in W ashington, viz., that the-President intends, by taking control of the international gold market, to raise prices not only in America, but throughout the world. It is expected that France will be driven off gold by the drain of the American buying. The way would then be clear for the adoption of a new standard. It is said that Mr Roosevelt is convinced that, nothing less than a' new monetary system throughout the world is needed to remedy the existing evils. A plain statement by President Roosevelt, might restore confidence, but that is unlikely, at present since there is no moans of calculating what degree of; depreciation will raise the American prices to the desired level.

CAPITAL’S FLIGHT FROM FRANCE

- LONDON, , November 17. Fresh evidence of a flight of capital from France is provided in a Bank of France return showing .withdrawals of nearly nine millions sterling for the week ended November 10, following on withdrawals for over twelve and a half millions', sterling in the previous fortnight.lt is believed the withdrawals in the current week will be on even a. -larger scale. The Bank of England, it is believed, has brought hundreds of millions of francs. Mr Montagu Norman and his colleagues fear that if France is forced from the., gold standard, the' hope of a return to’gold on a.world-scale will be gone. '

BRITISH FINANCIERS DAZED,

. LONDON, .November 1?. The "Manchester Guardian” says : “The fall of; the dollar is so stupendous that financial authorities here seem too dazed to express ideas on the subject. The drop of the. dollar from 3 dollars 40 cents to 5 dollars 30 cents in relation ,to .the pound over the past seven months has temporarily extinguished Britain’s McKenna ajid her other duties, but this is negligible, because business is impossble w the present epileptic state of exchange.