U.S.A. EMERGING

Hokitika Guardian, 25 November 1933, Page 5

U.S.A. EMERGING

FROM DEPRESSION

UNCERTAINTY ABOUT CURRENCY.

(United Association—By Electric Telegraph— -Copyright.)

NEW 1 ORK, November 23. The N.R.A. leader, General Johnson, in the course of a. speech 'to-day, said that the country is now twentyfive per cent out of the depression, and be warned the partisan critics to keep out of the way, or they might be trampled under. It was reported to-night that General Hammond, Executive Director 0 f the Blue Eagle Division of the N.R.A., shortly will resign as a result of differeivts of opinion with General Johnson over the Governj ment’s enroachment upon industry, j A New England message states I that a council composed of business j j executives and leaders of industry, adopted a resolution that uncertainties about currency were retarding normal recovery in tile country” threatening Government credit and hampering private enterprise. Senator Hatfield attacked President Roosevelt’s remarks about the Tory group opposing the Government’s policy. He compared the President to George the Third of England who, he said, ’’ran the original N.R.A.”

The shifting pattern of Government finance assumed new forms today. .I he price of gold remained unchanged, while the dollar rallied sharply on the foreign exchange markets, reaching 61 dollars 69 cents, as against the franc, which fell by fifteen points to 6 dollars 33* cents. Sterling dropped to 5 dollars 37 cents.

The break of both sterling and the franc is being attributed to the foreign reaction to American criticism of Mr Roosevelt’s policy, among other things.

Senator Thomas has telegraphed to the President reiterating his proposal that the gold price should he fixed at 41 dollars 34 cents per ounce, thus reducing the gold content of the dollar by fifty cents. The n they should proceed to work out an international agreement to stabilise the dollar at that figure."

Air Douglas, in an address to-day, said that he hoped for revenues for the 1935 fiscal year of 3550 million dollars, with an ordinary budget of 2600 million dollars, enabling an allocation of approximately one billion dollars to be made to help to meet accumulating extraordinary charges. He gave a warning, however, that if the Reconstruction Finance Corporation undertook additional emergency obligations, further taxes would 'have to be imposed. Mr Wallace (Administrative, Minister) declared to-day that the United States must either reverse its present commercial policy and begin to imp’ort much more merchandise, or must be prepared to forego the collection of debts that are owed to it by foreign Governments, which would require about a billion dollars per year for servicing. The Farm Administrator, Air Peek, declared that American agriculture would surely stagnate unless the United States “shoots holes in its tariff,” arranging for foreign outlets through trade agreements.

EFFECT ON BRITISH TRADE

RUGBY, November 23,

Answering Parliamentary questions, Air Neville Chamberlain said that, according to such information as had reached him. the depreciation of the American dollar had not, up to the present, seriously affected British trade. Consideration from time to time would be given to the question of whether, and if so, what action was necessary in the interests of Britain.

The Chancellor said that he had every reason to suppose that the policy of maintaining the independence of sterling was approved by British manufacturers and exporters.

CAMPAIGN AGAINST HOARDERS

WASHINGTON, November 23

It .is announced that as the result of the Government’s campaign against the Government hoarders, thirty-nine million dollars in tin rrutal have been returned. There were nine persons indicted, and twelve of the complaints against hoarders are expected to result in an indictments.

FRENCH GOLD WITHDRAWALS

PARIS, November 23

For the third successive week, the Bank of France return shows a sharp l withdrawal from the gold reserve, aggregating 214 millions sterling current exchange. This is largely offset by the reduction in the note circulation, adding difficulties to the internal price-level.