U.S. GOLD PURCHASE

Hokitika Guardian, 18 December 1933, Page 5

U.S. GOLD PURCHASE

TO BE CONTINUED

PRICE REMAINS UNCHANGED

sUmtwd Press Association—By Electric

i apu—V/opy rign i,

WASHINGTON, Decemer 15. It is revealed tnat tile Keconstruc-

tion Finance. Cioiporacion have so iar allocated seveiuy-nve million dollars ror tne purenase of goi-u. Or tlie iu-st nriy million dollars authorised, on November 26, about thirty-live minions were used for til© purchase or lor-eign 'gold, and fifteen millions lor* ne.wiy nnneu domestic gold. The second ahocation of twenty-five million was made about ten days ago, a fact which is no longer interpreted to mean tnat no extensive purchases aoroaa are immediately contemplated.

This latest appropriation definitely refutes widespread rumours that x resident ltooseveit had privately taiie n cognisance of Judge Aclieson's opinion tnat gold buying was illegal, as cabled on November 26, and that iie'was withholding further purchases pending enabling legislation by Congress,

For the- fourteenth consecutive businesday the gold price remained at 43.01 dollars an ounce. The dollar declined moderately in terms of the gold currencies, and it; closed at 64.76, being down .26.

Sterling closed at 5 dollars 12 cents, being up three-quarters. The franc closed at 6 dollars 14-J- cents, being up 2iFor some unknown reason, an unexpectedly heavy liquidation developed on this, the short trading day. Stock exchange prices were down one to three points on a 1,070,000 share turnover. Domestic bonds were off fractionally, while Government issues were up fractionally. Commodities were irregular and lower.

RETURN TO GOLD URGED

NEW DOLLAR-POUND RATIO

NEW YORK, December 15

Sir Norman Angell," •in • a press interview to-day, suggested a return to the - gold standard with a new ratio as between th,o. dollar and the pound. He admitted there were wide differences of opinion in the respective countries of .what the ratio should be, saying that the British authorities think the natural ratio to be somewhere in the region of four dollars, while he found Americans mentioning six', or even eight dollars, to the pound.

He said: “At- some point yoti will have to stabilise by agreement. There may be a reason which makes it- wise to wait, A load of internal indebtedness' must be reduced by either, or both, vast liquidation and inflation. I, think both, in a degree, will have to be employed. 1 '

HOUSE OF LORDS’ JUDGMENT

VALIDITY OF GOLD CLAUSE

LONDON, December 16.

The House of Lords gave judgment upholding the validity of the gold clause in the case of the Societe Intereommunale Beige de l’Ectricite bonds, thus reversing the lower courts' decision.

The “Financial News’’ says: “It is a most important step in the defence of legal contract, as against financial conveniences. The chief importance of the decision is the vindication of the truth that, at least the British gold clause remains as good as gold, and that payment i n gold does not mean payment in paper. The “New York Times’ ” ' financial 1 editor comments: “The decision of the British House of Lords in upholding the validity of the gold clause, and thus reserving the British Court of Appeal’s d e cision, will probably cause less stir here than if it bad been handed down a few months ago with a stir about thedevaluation of the dollar. The exoitment over the abrogation of the gold clause in America ,‘lastj May is forgotten. It may be recalled, however, that at the time Congress took action, its apologists pointed to the then decision of the British Courts as a factor justifying such abrogation here.”