SWEEPING ORDER

Hokitika Guardian, 30 December 1933, Page 5

SWEEPING ORDER

DELIVERY OF GOLD

U.S. TREASURY’S REQUIREMENT.

(United Press Association—By Electric 'telegraph—Copyright. v

WASHINGTON, December 28

The Secretary of the United States Treasury, Mr Morgenthau, to-night .issued a sweeping new order requiring the delivery to the Treasury of I all the gold com, gold, bullion and gold certificates held in the United Statps. Tile following exceptions to the order are permitted:— (a) Tiie gold bullion held under Federal License; (b) the rare gold coin having a recognised value to numismatists; (e) gold not exceeding ,100 dollars worth in the hands of individuals; (cl) the gold coin, bullion, and certificates owned by the Federal Reserve Banks and the Reconstruction Finance Corporations; (e) the gold now in Hawaii, the Philippines and other United States possessions, Mr Mc.rgenthau’s order was issued under the authority of the Emergency Banking Amendment, authorising the Treasury Secretary to requite the delivery of gold coin, bullion and certificates to tne Treasurer whenever, in his judgment, “such action is necessary to protect the currency system of the United States.” The order provides that the penalty for non-compliers be ten. thousand dollars of a fine, plus an assessment 1 for twice the-amount of the gold held, and ten years’ imprisonment. It 'is understood that the regulations have been issued to make more, effective President Roosevelt’s original gold order.

There are reports persisting that some new movement is imminent in the Administration’s monetary programme, leading to the eventual devaluation of the dollar, ana to the seizure by the Government of profit made in gold. The new order is interpreted in some quarters as being a final drive to get the gold in before such action is taken. This, however, i s denied at the Treasury.

The order has. caused contusion, because it has failed to provide exemption for the individual holders of gold coin or certificates up to the 100 dollars as heretofore provided. After conferring . with President Roosevelt, Speaker Rainey, Leader of the Democratic party, predicted that the coming session of Congress will be brief, with no disturbance of the Administration’s monetary or other programmes. Speaker Rainey declared that the Democratic majority not only approves of the monetary programme thus flu*, but, with even a little encouragement from the President they would monetise silver and thus “in-oad-e» our monetary base considerably,”