Evening star., 1933-11-03
GOLD At NEW HIGH
AS BUYING GROWS
Roosevelt Program in Full
Operation-MetaI Listed
at $32.57 an Ounce.
BY the Associated Press.

BY the Associated Press.
The Roosevelt plan for forcing prices
| upward by increasing the value of gold
was in full operation today, with the
Governments agents quietly at work orl
the European bullion markets and the
domestic price Of the metal again
reaching q new high.
For Reconstruction Finance Corpora
ton purchases of the metal when
newly mined in the United States. a
price Of S32.57 was announced, an
increase of 81 cents since yesterday
and 81 cents higher than the days
London price, converted into dollars
at the opening exchange rate Vi
S484l2.
London Figures Up.
The London figure, S32.26, was the
highest since the administration gold
buying began nine days ago.
In actual British currency 1t was
slightly under yesterday. when a price
of 1873 shillings pence was reached
Today 1t was | penny under that.
The weakness of the dollar, falling
21a cents overnight. was responsible
for the discrepancy between the in
crease in the dollar quotation as con-
traSted with the decline in the British
currency quotation.
Actual purchases abroad, which for
eign dispatches said began yesterday
were wrapped in secrecy lest speculs-
tors here or in Europe seek to enrich
/ themselves by the Governments opera
| tions and possibly hinder them.
! All power in making the purchases
was delegated to the Federal Reserve
Bank at New York, and officials here
said the only announcements of what
| is being done would be intermittent
| summaries covering the activities Of a
| period of time
Money War Is Avoided.
! The United States has two chief
reasons. among others, for its strict
secrecy about gold purchases abroad
first, to avoid squirting other nations
into a monetary war and, second, to
keep spectators in the dark.
There are, Of course, other factors
behind the decision not to announce
every, day the price the United States
would pay for bullion. Among these
was the implication that officials are
not too anxious to tell the rest Of the
world exactly what they are doing
-Four banks in New York-National
City, Chase National, Guaranty Trust
and Bankers Trust-are to collaborate
with the Federal Reserve Bank in the
purchases.
Administration officials here pre-
ferred, however, to maintain silence
about the transactions Without COM
ment, they heard of press information
that the first bullion had been bought
in Paris yesterday. They intimated
that they would continue to express Of
ficial ignorance of anything done by
the New York Federal Reserve Bank.
Stability Is Objective.
There were, though, number Of in
dicationS that coupled now with the
desire, eventually at least, to steady but
not peg the dollar -pound-fran ex-
change rate.
The domestic gold price, meanwhile,
will be fixed every day on an increasing
basis, and the new price announced
From time to time the United States
will do as has Great Britain with her
sterilization fund-announce how much
foreign gold has been bought for a
specified period and what it cost in
total
This plan, 1t was unoficially held, will
have the ultimate effect of bringing up
the foreign gold price regardless OF the
size of the purchases. Also, it was
added, it will enable the United States
to work toward its observation-disclosures
81, Jn11 -vIrif1 on
open and much-publicized campaign
which other nations might interpret as
desire to depreciate American cur
rency in relation to theirs.
Thus, it was said it would be easier
to convince other countries that Amer
iica,s real objective was higher prices
at home.