Evening star., 1933-11-02
. Amount Is Uncertain.

dollar in line with foreign currencies.
The higher or more consistently the
r. F. G. bids up the world market the
cheaper and Steadier becomes American
dollar values in international markets.
country may be some index of probable
purchases in Europe The United States
mined about s51,ooo,ooo of gold last
year lat the statutory price Of $2O.67 an
ounce, but Senator Thomas of Okla
chase of similar amount this year
would not be sumeient D99ine 1912e the the
United States mined more than $101,-
100000 of gold.
Nineteen States, Alaska and the
Philippine Islands produce gold. the
1882 output ranging from $500 in South
Carolina to s1O,773. 800 in California.
Canada, producing S60,061 900 of gold
last year. replaced the United States as
the worlds second largest producer
South Africa, always the leader, pro-
duced S263, ,4600 900 of the yellow metal
Three Prices Quoted.
There now are three gold prices
quoted by the United States-the stat
utory price of $2067 an ounce which
has prevailed since February, 1900, by
act of Congress, evaluating gold for
coinage purposes; the Treasury price for
sale to the trades or for licensed export,
and the R. F. C. price, determined by
the Secretary of the Treasury and the
President
The American value of gold in 1900
became the world value when govern
mentS fixed the gold content of their
currencieS. The weight of gold in the
dollar was fixed at 1922 grains nine
tenths fine. On that basis the gold
value Of the dollar on october 80 was
about 64 cents, the R. F. c. price being
quoted at s3l9 an ounce.
Gold basis values of the dollar are
determined by dividing the current R.
F. c. price for gold into $2067, the
statutory price.
On the first day of gold purchases by
the R. F. c., when the price was set at
S31 .36 an ounce compared with the
dollar value of the country's gold stock
automatically advanced from $4,324,-
900 900 to Sc $50, ,000, 800. The Federal
Reserve gold stock on the same day ad-
vanced from 1892 900, 900 to approx
mately $5,424 900 900, a dollar profit of
Sl.832 100000 O~over the gold standard
valuation. - -- '-
Commodity Prices Follow.
Theoretically, commodity prices in
creased in direct ratio to the rise in the
value of gold. both commodities and
gold requiring greater number of dol
lars to the unit of weight and measure.
Likewise, the foreign purchase of
American dollars to keep their value
high-as charged by Mr.. Roosevelt in
his last address to the Nation-theoret-
ically is to be offset by r. F. c. pur-
chases of gold in the London market
The Presidents new monetary plan
is based on the belief that there is a
necessary relationship between the price
of gold and other commodities and that
by raising gold prices other prices may
be raised
There is an illustration of the situa-
tion he wishes to remedy in estimates
that % bags of wheat recently we're re-
quired to buy the same amount of arti-
cles the farmer consumes as 5 bags
bought in 1914, Z bags in 1920. 9 bags
in 1925 and 10 bags in 1880.
Noted Doctor Dies.
LONDON, November P.-Sir
George Henry MakinS, 30, died today
after a long medical career which in
cluded World War service and activities
in Red Cross work and cancer research.