Evening star., 1933-12-19
R. F. c. HOLDS PEAK
GOLD PRICE TODAY
Domestic Quotation Remains
$34.06 for Second Day.
Morgenthau Satisfied.
By the Associated Press.

BY the Associated Press.
A domestic gold price of $3406 an
ounce was maintained by the Govern
ment today for the second time. This
peak was reached yesterday when q
cent increase lifted the Reconstruc-
ton Finance Corporation quotation
above the two-week level Of s34.01.
Shortly after this boost, Acting Sec
retary of the Treasury Morgenthau
commented that he was satisfied" with
the commodity price responses to the
gold program on which the Recon-
struction Finance Corporation has
spent more than s50.000,00O
In London, bar gold was bringing
S32 81 an ounce on the basis of ster-
ling opening at s5.15l2 to the pound.
Meanwhile. published reports that
President RooSevelt's advisors are con-
sidering asking Congress for new none
tary powers in promoting commodity
dollar were termed purely specula
tive" by Herbert E. Castor, Treasury
spokesman.
Powers Still Unused.
1ne FIeSlOtEI Sllll mas unused pow
ers to issue United States notes in re-
firing interest bearing obligations up to
$4,000 100000 and to lower the gold
content of the dollar as much as so
per cent.
Other reports that efforts will be
made in Congress to take away Presi-
dent Roosevelt's permissive imitation
powers were discredited today by Sena-
tor Thomas, Democrat, Oklahoma.
Thomas told newspaper men the ex
ecutive probably would be given more
powers instead of having any taken
away"
The big banks want those powers
withdrawn SO they can again dominate
the financial and industrial situation
Thomas said.
He added he wanted to see the gold
purchase program continued until the
price of domestic gold reached SAL "a
an ounce. or double what it was when
the purchasing began.
"As 1 see it." he said, "the dollar
will never contain any more gold than
it contains now"
Senator Connally, Democrat, CT
Texas, who urged during the Hoover
administration devaluing the gold con-
bring this about was incorporated IN
the Thomas imitation amendment. re-
turned to washington and reported
strong support for the gold purchase
program.
He said Texas was behind the Presi-
dent on the currency question
One subject which has been given
study almost continuously since gold
buying began is the Treasurys power to
buy and sell gold. This plan was re-
jected originally in favor of r. F. G.
purchases, but its legal phases have not
been forgotten by administrator OIL
ficials.
Steadily Advancing Price.
Although adherence to President
RooSevelt'S gold program was the IN
depreciation of Morgenthau'S expression
of satisfaction at commodity responses
to the price-lifting plan, there were in
tiated officially, that somewhat new
approach might be employed.
The first month of the gold plans
operation was marked by steadily ad-
vancing price for the newly mined
metal from S3136 on october 25 to
$3401 on December l. During this
period foreign gold buying was de-
scribed by the R. r. C. as negligible.
In the last week of November, how
ever. a 25-cent boost in the gold price
to $34O1 apparently had little effect on
the dollars foreign exchange value.
At this point the Government was
believed to have instituted its heavier
foreign purchases, now considered to
have passed the 'S35, ,0000 mark. Dur
ing this period also the dollar failed
to cheaper appreciably.
New Policy Seen.
These circumstances prompted the
belief in some quarters-after the gold
price boost to $3406 and Morgenthau's
Statement-that a combination OF
higher domestic prices and continued
foreign purchases may be employed In
the immediate future.
Morgenthau, asked about commodity
prices, quoted to newsmen from COM
mercial agency's chart of 80 commodi-
ties. Taking October 81 as 100, he said
the index on Saturday showed the COM
modities at 1857 and gold at 116 and
agreed this indicated "a per cent
response by commodities to rising gold
prices.
rHY~TTTA \ATH"