U.S. DOLLAR POLICY

Hokitika Guardian, 24 November 1933, Page 5

U.S. DOLLAR POLICY

OPINION DIVIDED

OPPOSITION TO MR ROOSEVELT.

(United Press Association—By ElectrLi

Telegraph—Copyneut.)

WASHINGTON, November 22,

Although the only word limn VC-mi Springs, -where' the President is on holiday, is that he will confer with •Mr ’Morgenthau ‘here late in me weeic in pushing ahead the gold control monetary programme, the line between the opponents ana supporters of Mr Roosevelt’s policy .was more tightly drawn to-day. - J

Mr Woodin issued a statement- seriously criticising Mr Sprague’s aspersions on Government bonds, a s impeaching “Doctor SP r ague’s own common sense competency as a studen:of iinnace.”

On the other'-: hand it is indicated that Mr James Warburg, chief. adlyisor to the American delegation to the World Economic Conference, tonight would announce hig opposition to the President’s finandial policy. Meantime, Mr Roosevelt’s remarks ’about “Tories” appears to have struck a spark an the breasts of those who in ’business and the commercial world generally, are aligning themselves against his,, course of action. An association of American Tories has been founded-in -New,. York, with membership recruited from some fairly well-known men, pledged to oppose inflation tendencies. An United States administration.

Congressional leaders-’were divided in their support of Mr ’-Roosevelt, out chiefly along the lines of sectional interest. : Democrat Senator** in trie West and ’South are hacking- the President; and the Eastern Republican Congressmen are opposing him. Senator 'Reed (Pennsylvania) said that Mr ’Sprague’s resignation “should serve as' a warning that the national .administration stands o-n the brink of the most dangerous experiment any Government -Could undertake.”'

President Roosevelt’s monetary policy was ‘bcfth commended and denounced by speakers before the American Academy of Political and Social Science.

Mr James Warburg, the banker, who w.ae a-dv\ser to the American Delegajtion at the London Conference, advised an immediate abandonment of Mr R’oo'scvelt’-s gold policy, and instead the establishment of an international gold standard, that would he “improved and modernised.” ’He said that gold buying -as a relief-for the depression could "Ot work in practice. He did not believe that, n>s a matter, there could be anv such tlvng *8 a dqllar of constant purchasing power.

GOVER2JMENT BONDS RALLY

DELIBERATE “BEARING’’ ALLEGED

NEW YORK. .November ?-2

There has been a rally in U.S. Government bonds. It was partially explained late this afterno'on by an important announcement from Wnshinfrton that the Treasury is purchasing it 8 own bonds in the open market wltn the surplus funds from the sinking fund, postal savings reserves, and other sources. Mr Morgenthau refused to disclose the amount of money that is available for such purpose, but he said that the extent of the purchases will be announced each ..week on Monday. -

The final trading quoted the dollar at 60.65 cents ; in terms of gold, thus showing the 'strength of the dollar from the early quotation, namely, the franc at \6 dollars 47 cents, and sterling at 5 dollars 41 'cents, Wheat fell off 11 to 1 3-B'cents, and cotton seven to nine .points.

Apparently on reliable information certain large holders Of U.S. Government securities have been deliberately “bearing” the market to. embarrass Mr' Roosevelt’s gold policy. / The local (New York)' Feder't Reserve Board ha s ordered an investigation into.the recent exchange dealings. R has requested all of its member bank 5 to -submit a .complete list of thei v transactions since October 30, whm 1 a lieavy decline in the prices w. -s started.

It 'i s reported that there has been •much short selling, which is an unusual transaction, in the bond business. this selling indicating a' desire to depress the market. Eor the last fortnight the sales of the Government • securities have been the heaviest for twenty years.

DOLLAR STEADY AND QUIET

NEW YORK, November 22

Th e . gold pc’ce was unchanged today. The dollar was oomparativelv and miiet ptorlino- n nd f dealings. Stocks on the New York p+ock Uxcb mge rallied after selling off. early i.n extension of vesterdov s reoefion. Commodities ruled lower. ‘United States bonds Tallied sharply efter an eaTlv decline, the recovery being aided by Mr Wocdin’s statement.