The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-10-30
ROOSEVELT DECIDES
TO PURCHASE GOLD
ON WORLD MARKETS
Foreign Quotations on Dollar
Surge Upward as Result
of New Move
PRICE RAISED STILL MORE
President Hopes to Steady Ex-
change and Force Com
modities Upward

mooltleS upward
Washington. Oct. 30.-(P - With
foreign quotations surging upward in
response to President Roosevelt's deci-
sion to inrade the world gold mar
kets Sunday the administration Mon
day pushed the domestic price for
newly -mined gold to new high fig
IRE.
It established a rate Of 1896 an
ounce, IA cents higher than Saturday.
Meanwhile. the price Of gold adj
vaf,ced In London by 81 cents figured
at Mondays foreign exchange open
ing OF $3.50 to the pound.
Mondays Washington price was ~
cents above world quotations. while
Saturday there was a margin Of SIPS.
While these developments were TAX
il:g place. the administration went
forward with its plans for buying gold
abroad, decision which was reached
at conference Of the nations fiscal
officers Sunday at the white house.
BY these purchases, Roosevelt ap-
parently hopes to steady-but not,
FOR the time being, to stabilize-the
foreign exchange value Of the dollar.
Beyond that he hopes to raise COM
modify prices to give the farmer and
manufacturer q profitable return on
their products.
Economists Explain Move
Economists explained that buying
gold abroad for dollars (even though
through the process Of international
settlements the metal is eventually
paid for in commodities) differs but
little from selling dollars in foreign
exchange.
Little favorable reaction was found
among senators in Washington to ex-
tension of the administrations gold
purchase policy to world markets.
Critical comment was made to re-
porters by Republicans and Repub-
lican Independents. Democrats who
approved the step were lukewarm and
doubtful of the results hoped for.
Senator Thomas (Dem, Okla.), an
lnflationist leader, saw some benefit
theoretically and psychologically" in
the move, but little actual" help.
| Thomas considered the unfavorable
comment and talk Of currency wal
from abroad natural. since the Amer
lean policy is ''antagonistic to foreign
! interests"
"They are trying to keep on the gold
standard" lie said. Our policy Is not
intended to drive them off. but it viii
have that result. look in the next
few days for every nation to be Of
the gold standard"
May 'Coerce' Price Rise
Chairman Fletcher CDem., Fla, o
the banking committee. said the buy.
ing Of foreign gold would tend t,
adjust the exchange rates and ma.
coerce q rise in commodity price,
here"
Senator Couzens of Michigan, Re
publican Independent member of tn
banking and finance committees, sal,
ne had not the slightest idea wher
| the administration Is going" and wa
quite sure it is not on the RICH
road; adding that everybody is dis
!, turbed about the outlook and hesitan
as to our money policies"
Senator Reed of Pennsylvania, Re
publican member on the finance com
mittee, commended:
| If we attempt to buy gold abroad
1t will mean that the whole world wi
throw a wall around themselves q
! far as the export of gold is concerned
It will lead to q complete disruptio
Of foreign exchanges.
This is very unwise policy an
after the president has tried it for
few days he will realize and, hop
back out of it."
. Senator Nye. North Dakota Reput
3 iican Independent. said he could NJ
d "enthuse" over the program.
: It is expected 1t will take coup
e Of days, at least, to put up the ms
o chinery for gold purchases abroa
The president has directed this
- done through the Reconstructic
{ Corporation. which is making Il
domestic purchases Of newly mine
gold.
The presence here Sunday Of o
ficials Of the New York federal r
n serve bank led to the opinion tn
4 This institution would be employed
e ,..he agency for making the foreil
81 purchases.