STABILISED DOLLAR

Hokitika Guardian, 15 December 1933, Page 5

STABILISED DOLLAR

PLANS UNDER WAY

GOLD PRICES IS UNCHANGED.

(United Pr9ss Association—By Eleetrio

Telegraph—Copyright.)

WASHINGTON, December 13

Senator Thomas revealed to-day that he has been informed that the New York Federal Reserve Bank is negotiating with- the Banks of England and France for a stabilised dollar at about 62 cents. Senator Thomas immediately issued a statement denouncing dollar stabilisation at any figure above fifty cents.

He threatened an inflation light in Congress if the President does so. He said that jpiy higher stabilisation than 59 cents would produce a terrible situation, and would probably result in a collapse of the President’s recovery programme.

He predicted that the various elements in the inflation group would have, a majority in Congress but it probably would not be enough to override a Presidential veto.

The gold price in America Was today unchanged. The dollar shoWetd new strength on the London market. The gold price at London on the basis of the opening sterling rate of five collars 3) cents was 31 dollars 74 cents an ounce.

In the foreign exchnnge market, the dollars went to a new high level in the current movement, namely 65.35 cents in terms of the franc, which, with sterling, has dropped. Commodities weakened as the drop of sterling caused selling in both rubber and silver futures, grains and other staples.

HUGE IMPORTS OF LIQUOR

WASHINGTON, December 13

Tt is announced that allocation for 5,595,000 gallons of li.quqr to be imported within the next four months have been granted. It is aimed to destroy bootlegging by making liquor cheap, and, at the same time, to bargain with the exporting nations to exchange liquor for farm produce surpluses. Director Choate did not disclose the countries which allocated the quotas. It is understood that a plan is being considered to make immediately available large stocks of whisky in Canada as the best solution of the high price of spirits prevailing in the United States, despite the lapse of a fortnight since, repeal.