Evening star., 1933-10-30
American Price
Is Boosted
II Gents.
S3l.96 AN OUNCE
SETS NEW HIGH
Republicans Score
Plan; Democrats
Doubtful.
BY the Associated Press.

Will lOIclSH QuOtdGlUllS SUI illB
upward in response to President
Roosevelt's decision to invade the
world gold markets, the admins
tration today pushed the domes-
tic price for newly mined gold to
a new high figure.
1t established rate of S31.96
an ounce, IA cents higher than
on Saturday.
Meanwhile, the price of gold
advanced in London by 81 cents,
figured at today's foreign ex-
change opening of $3.50 to the
pound.
Today's Washington price was
Al cents above world quotations,
while on Saturday there was a
margin of S125.
While these developments were
taking place, the administration
went forward with its plans for
buying gold abroad, a decision
which was reached at a confer
ence of the Nations fiscal officers
yesterday at the White House.
Hopes to Steady Dollar.
BY these purchases, Mr. Roosevelt
apparently hopes to steady-but not for
the time being, to stabilize-the for
eign exchange value of the dollar
Beyond that he hopes to raise COM
urit in ho lott
point which will give the farmer and
manufacturer a profitable return on
their products.
Economists explained that buying
gold abroad for dollars (even though
the process of international settle
mentS the metal is eventually paid for
in commoditieS) differs but little from
selling dollars in foreign exchange.
Reserve Board Confers.
Meanwhile, the Federal Reserve
Board today discussed thc Govern
ment's latest maneuver to purchase
gold in the foreign markets.
While members refused to discuss the
conference, it was indicated that the
boards role in the new maneuver was
gone over
The presence of George L. Harrison.
governor of the Federal Reserve Bank
Cf New York, at yesterdays conference
led observers to believe that the re-
gional institution in New York would
be the fiscal agency in carrying out the
Presidents program.
The board indicated that an impor-
tant announcement supplemerting last
nights statement would be forthcoming
later.
Little favorable reaction was found
among Senators in Washington today
to extension of the administration
gold purchase policy to world markets.
Critical comment was made to re-
porters by Republicans and Republican
Independents, and Democrats who ap-
proved the step were lukewarm and
doubtful of the results hoped for.
Thomas Sees Little Help.
Senator Thomas, Democrat, of Okla
homa. an inf1ationist leader, saw some
benefit theoretically and psychology
ically'' in the move, but little actual
help
IF the gold purchased is placed in
circulation or used to back money" he
said, "the new policy will be all right
But that won't happen. In the first
place we won't get much gold to speak
OF: In the second place, if We do, it
will not get into circulation.
Until it or its money equivalent does
get into the hands of the people it won't
do any good. The purchases will drive
commodity prices up, but not anything
like the circulation of more money for
pay rolls and the like
Thomas considered. the unfavorable
comment and talk of a currency war
from abroad natural, since the Ameri-
can policy Is "antagonistic to foreign
interests
They are trying to keep on the gold
standard" he said. "Our policy Is not
intended to drive them off. but it will
have that result. I look in the next
few days for every nation to be off the
gold standard"