Evening star., 1933-12-18
j. s. COLD PRICE
JUMPED TO$34.G
Increase Is First Since Dis
closure of Recent Heavy
Purchases Abroad.
BY the Associated Press.

BY the Associated Press.
The Government jumped its gold
price to S34 06 an ounce today for the
first upward movement since Decem-
Der l.
The f1ve-cent increase resumed the
upward trend begun when a price OF
s3136 was fixed October IS at the
beginning of President Roosevelt's ef-
fort intended to boost commodity prices
by raising gold values
1t also was the first price increase
since the disclosure of recent heavy
gold purchases abroad. estimated II
have exceeded $4,000 900.
This foreign buying was believed to
have taken place during the December
weeks that the domestic price has re-
manned stationary. Whether the new
increase in the R. F. C.'s quotation
represented a return of emphasis t.
the domestic price and lessening o.
foreign purchases could not be learned
officially.
Price in London SEAS.
Bar gold was bringing S32 48 an
ounce in London today on the basis OF
sterling opening at s5.12l2 to the pound.
Apparently. by coincidence. the new
gold price increase followed two group
statements relating to the country S
monetary and financial condition.
One was a study by the Brookings
Institution, holding the administra-
tion's gold purchase plan cannot be
relied upon to bring higher price levels.
1t called for reconsideration OF
monetary policies in relation to eco
nomic recovery, arguing that monetary
uncertainty sooner or later leads to a
deterioration of Government credit. "
CA full report on the Brookings 1nsti-
tuition study may be found on
page A-2)
The second development was a de-
mand of the National Economy League
for a balancing of the budget which
would bring all expenditures, both ordi-
nary and emergency, within receipts.
The league contended the present
rate of spending would produce un-
sound money and estimated the Gov
ernment would close its fiscal year
next June with a $4,000, ,00G, 600 deficit.
Treasury officials, busy with prepa-
rations of the 1885 budget, had no
immediate comment on the leagues
petition to the White House. A mid
December statement of the Treasurys S
condition. however, showed a deficit
close 70 the billion-dollar mark and
just about equaling the amount of eX-
penditures classified as emergency"
In five and one-half months of the
fiscal year the Governments receipts
we're Sl,309, ,3O5,475, but $129,254,O00 of
this was derived from farm processing
taxes.
for ordinary Government operations
were 81, 308, ,348, ,307. while the so-called
emergency expenditures, including such
functions as the R. F. c., Farm Credit
Administration. Agricultural Adjustment
Administration, the N. R. A. the Civil
Works Administration and public works,
were $9)9,211.312.
Deficit Is s90s, s,254,I44.
The excess of expenditures, or deficit
piled up in five and one-half months,
was seo8,254,144, or less than a million
under the emergency outlays.
The TreaSuryS cash balance was ST.
77,607, ,004, a considerable boost over
the preceding days figure of $685., ,889, :
876. Mid-December financing, including
the sale of 1892, ,496, 500 in one-year Sc
curities and the retirement of $727 ,000,-
900 In maturities, provided most of this
cash increase.
Actual cash outlays by the Public
Works Administration came to S152, 2,244,-
1886, only a fraction of the nearly So
000,000000 allotments. 1t was expected
the Spring months would bring huge
increase in public works cash expendi-
lures.