U.S. GOLD POLICY

Hokitika Guardian, 28 November 1933, Page 5

U.S. GOLD POLICY

MOLEY'S DEFENCE

“SOMEONE MUST FIX PRICE.”

United Press Aseoiiatioa—By Electric*

Telegraph—Copyright.)

(Received this day at 9.20 a.m.) SANTA BARBARA, (California),

November 27,

Professor Moley to-day defended his former chief’s monetary policy. He asked: “Some one has to fix the price of gold. Why should it not be the United States?” He added: “For years the Bank of England has fixed the price of gold, and no one has ever howled. Now that the President has decided to have the United States fix the price, why should there, be any objections. There was ho complaint when England was forcing the pound down from 486 to 325. Why should there be complaints now that Mr Roosevelt has forced the pound back, regaining international trade that was being diverted to Britain by a decline in the pound.”

OFFICIAL QUESTIONS LEGALITY.

OF MR ROOSEVELT’S POLICY.

NEW YORK, November 26,

The ’’New York Herald Tribune” declares Mr Acheson has been forced from hi 6 treasury post, this being due to his contention - that the gold buying through the 'Reconstruction Finance Corporation is illegal. In a memorandum that he submitted to the President before his resignation, Mr Ajaheson' construed the provisions of the R.F.C. Act as being not such as to allow its securities to be exchanged for gold. Countering this contention, the R.F. Corporation's counsel 'and attorney, General Cummings, submitted opinions -declaring -that the R.F. Corporation is authorised to re-finance itseil; though the sale of its securities, ano i thua the purchase of gold are within the law.

■lt is expected Mr Acheson’s regal view will now form the basis of va Congressional attack on Mr Roosevelt’s policy, with a possible revision of the R.F.C. law. A comprehensive price survey published >and copyrighted by the United Press, declared that after a month of gold-buying experiment, the -price )<we] based on the index of a hundred commodities, not increased anywhere in proportion to the increased price of gold, and has actually declined by a fraction of one per'centum. While the value of g-old increased by 13.29 Jpercaiiturn, the gold value o! the dollar decreased 11.72 per centum. The average price of 40 domestic bonds decreased 4.74 pci'centnm, Government securities 2.91, while ten foreign government bonds are up 3-18.

MR ROOSEVELT DEFEATED

WASHINGTON, November 26

A former Senator, Robert Owen, one of the framers of the Federal Reserve Act, denounced Mr Roosevelt’s critics. ■He predicted that if the opposite course wag taken, that is continued deflation, recovery would be halted and depression renewed. There would probably be a violent lunge into Communism.”

FRANCE AND GOLD .STANDARD

PARIS, November 26,

French official circles believe that France will remain on the gold standard, though the constant heavy withdrawals will lead to a restriction, in dealings in gold to legitimate commercial requirements.

THE PRICE OF GOLD

(Received day at 9.35 a.m.) LONDON, November 27. Gold is 125. s • 3d, the dollar being quoted tat 522;].