Evening star., 1933-11-07
|UPSW|NG IN GOLD.
PRICES IS HALTED
R. F. C. Fixes $32.84 Tenn
porariIy as London Mar
ket Weakens.
BY the Associated Press.

| by the Associated PreSs.
The upward price swing for newly
mined domestic gold was halted at
least temporarily today when the Re
of S3284 an ounce was set for the
metal, representing no change from
the previous quotation,
The local price came in the face of
dispatches from London telling Of new
gold weakness which had developed
there.
The London opening slipped of to
129 shillings 11K2 pence, representing a
drop Of shilling 10la pence.
The United States equivalent Of the
London price was $3l.84 on the basis
of sterling opening at $3.50.
Foreign dispatches said the available
supply Of bar gold in London, amount
| ing to acc, 900 pounds sterling, was re-
ported sold for the continent.
Exceeded Twice Before.
Today's disparity in the domestic and
world gold price levels has been ex-
October % when the spread was $1.25
an ounce, and on october 81 when 1t
amounted to SLOT.
The American price, prior to today,
has been hiked consistently since the
domestic market was created on October
Is. The initial price offered for newly
mined domestic gold was S31.36 an
ounce.
As usual, Government officials refused
to shed any light on today's price fixing.
They have maintained an attitude Of
complete silence throughout, ON the
ground that otherwise SPECTATORS in
gold might reap profits.
The Reconstruction Corporation, el-
fhofIOh v;fllfy1n N nov hfOt, f7yad Yrirac
for newly y-mined domestic gold and ap-
proximately the same price for gold
bought abroad by the New York Fed
eral Reserve Bank, has curb on specu-
lators through the discretionary powers
given to the bank.
Those powers lie in.the ability Of the
bank to determine what price 1t shall
pay for the gold-whether 1t will pay
the fixed price Of the corporation, the
mint price of $20.67 an ounce or some
| other price In between.
Jesse H. Jones, chairman Of the cor
poration, reiterated that he knows Of no
reason why individuals or corporations
might not import foreign gold and sell
it to the Reserve Bank, provided it was
imported after November
Reports reaching here that Reserve
Bank officials had said they had no au-
thority to pay over the legal mint price
| for gold brought the comment that
the Presidents proclamation specifically
said gold imported after November l."
No Interpretation Of this language
other than the statement Jones has
made several times was available here
today.
The corporation declined to add any
thing to Jones' statement of yesterday
that a substantial amount of gold had
been bought in the foreign markets. No
total has been made public here.
Bank Position Upheld.
Federal Reserve Board officials today
upheld the position that its New York
bank was without power to make pur-
chases Of gold except at the statutory
price of $20.67 an ounce, as provided
In the Federal Reserve act.
Referring to the indicated conflict Of
views with Jones, one member Of the
board, who declined to be quoted, sought
to clarity the situation as follows:
'"rhe Federal Reserve Bank of New
York acts as the agency OF the r. y. G.
in the purchase OF foreign gold
Its function as this agency consists
solely in appointing member bank
of New York City to carry out the ac-
tua1 negotiation. Thus q member bank
effects the transfer, acting under des-
ignation by the Federal Reserve Bank
of New York"