GOLD VALUES

Hokitika Guardian, 22 November 1933, Page 5

GOLD VALUES

PRICE RECO VER Y

UNITED STATES MOVE.

United Press Association—J3y Els'trie Telegraph—Copyright.)

WASHINGTON, November 20.

The .price of gold was raised to 33 dollars 66 cents per ounce to-day and it was announced that the Government’s domestic purchases of gold to d:ite have totalled 7500 thousand dollars. The extent of the gold purchases abroad has not been .revealed. While some quarters have interpreted the rise as indicative of the President seeking a still lower level for the value of the dollar, in other quarters it is pointed out tint probably ’ii is only a step to bringing the American price into conformity with trie world price. |

That the move len<f<3 itself to these interpretations is a .further sign of President Roosevelt’s defiance of his critics among the United States Chamber of Commerce cannot be denied. The Association of the Reserve City Bamkeitj, representing half of the country’s hanking resources, to-d.iy 'joined the Chamber an protesting against Ahe Government’s experimentation in finance,

i/ft the same time, it is being asked here whether the increase in the pri n e of gold, for all of its .aspects of de- | fiance, may not be" tfie preliminary to a “tapering off” of the gold buying j policy in the face of his widespread j protest. | The dollar dropped to 61.02 cents as ami vast the franc to-day. , Sterling 'to-day closed at 5 dollars 301 cents, with industrial stocks being favoured. Commodities wtro .a'lso strong to-day, wheat gaining two cents. Cotton, rubber and silver also moved higher. DOLLAR FLUCTUATIONS. BRITISH LOSSES LIKELY. I LONDON, November 21. 1 Though the dollar has quietened, the fluctuations still are much wider than usual, and people here .are beginning lo discuss their effect on British trade. 'Tho “Financial News” says : “The extent to which British industry may be penalised by the depreciation of the dollar in the near future, should | be mild, but the extent of the benefit to American industry must be great. Besides any benefit from . Britain’s loss, substantial inroads must be, made into the trade of Germany, l Franco, Belgium, Czecho-Slovakia and . other, hitherto ‘ : :cheap" ; cost countries* | which previously wore itblo to •compete largely with America'.' A PRESS VIEWPOINT., . LONDON, November 21. The “Daily Express’” City Editor says : “Our trade will 'be greatly, affected unless the pound is lowered to the level of the dollar, or the dollar i s raised to the level of the pound. America competes - with Britain mostly in Canada, South America, Australia., New Zealand, Japan and ■China The exports principally affected av, 0 machinery. motor cars, iron, steel, chemicals, and cotton mniiofaetures. While the fall of the dollar permits Britain to purchase at lower •prices her cotton. tobacco, fruits, petroleum, and land, which last yea l cost thirty-five million sterling, it will increase America’s competitive power against 186 millions sterling’s woi’di of British experts, with which we. compete with. the. United. States. Our trade , pact s with the Argentine and other, countries may he of little avail if the \ ■ dollar continues to depreciate and the j : pound is left at a high level • but the effect of the pact is not yet seen to any extent.”

CANADA’S ACTION TOWARDS INFLATION OTTAWA, November 21. The gold reserves of Canada a 1 ’ 0 sufficient materially to increase the Dominion’s note circulation without violating the principle of a twentyfive per cent, gold-supporting currency ■ns that .adopted by the World Conference. The Prime Minister, Mr Bennet!, explained this in a speech on Monday night, intimating that such a method might be used to meet the needs of tbe Dominio.i, but it would be in such a. manner ;>& not to injure

Us credit at Homo or abroad. He gave. definite, 'assurance tlu.t legislation was being provided for a Central Bank and would be submitted next session, and he intimated that the Government were seriorely 'considering an extensive public works programme. and undertakings were possible next spring.