Evening star., 1933-10-24
FIRST GOLD BUYING
DUE TOMORROW TO
CONTROL DOLLAR
Jones, Acheson and Morgen-
thau to Confer on Price
at the Treasury.
ROOSEVELT DISCUSSES
PLAN WITH LEADERS
Supposed InAationary Move Studied
by Experts Here and
Abroad.
BY the Associated Press.

By the Associated Press.
The first purchase Of newly-mined
gold under President Roosevelt's move
toward a managed currency will be
made tomorrow.
Jesse Jones. as chairman of the Re-
construction Finance Corporation; Dean
Acheson, as Acting Secretary Of the
Treasury, and probably Henry Morgen-
thau, jr, representing the President.
will meet at the Treasury at $50 am.
or soon thereafter.
Through the Treasury's regular facili-
ties, foreign gold quotations at that time
will be received and the price and
amount Of the first Federal purchase
decided upon.
President Roosevelt today conferred
with the three officials who will par
ticipate in tomorrow's conference It
was asserted later that the price of the
purchase would be announced by
10 am.
Will Be Slightly Higher.
It was said in high Government quar-.
ters today that the price to be paid
would be slightly above the world price
level but officials refrained from giving
any more definite indications of the
amount to be paid.
Immediate purchase of newly-mined
gold is the first step scheduled in en-
ploying the dollar control policy over
which world financial authorities have
expressed widely divergent opinions.
Already home commodity markets
had bounded upward upon the Presi-
dents announcement of this step.
Omcial sources have indicated the
II. r. G. Will offer to pay more than
the London-Paris prices for new gold.
Government authorities believe such a
transaction will free the dollar from
control by foreign banks and specu-
lators.
Results hoped for include a cheaper
ing OF the dollar in terms Of pounds
and francs and an increase in the world
price OF gold. With such an increase In
gold prices. economists looked for a
boost in commodity prices
Will Regulate Prices.
To reinforce new gold buying when
ever necessary to attain his objective.
the President planned to trade in gold
on the world markets-buying to en-
courage price Increases; selling to check
excessive rises
A direct relation was said to exist be-
tween the Nations gold stock and COM
modify prices. Early 1893 exports Of
gold were accompanied by sharp de-
cline= Economists said the Presidents
gold embargo stopped the decline and
helped stimulate higher commodity
levels
In addition to buying newly-mined
gold, the plan contemplateS purchases
and sales of gold on the foreign markets
to adjust the colntrys supply of none
tary gold to the needs of the economic
situation as 1t develops.
When Te have restored the price
level We shall seek to establish and
maintain a dollar which will not change
its purchasing and debt-paying power
throughout the succeeding generation"
President Roosevelt said, in announcing
the plan
Believed Inf1ationary.
Although lacking an official inter-
probation. observers both here and else
where were quick to term the plan in
flationary and bulGsh. Stock exchange
quotations leaped upward at the outset
Of trading yesterday. but later reacted
showing. however, in most cases net
gains for the day. The commodity mar
kets. on the other hand shot upward
and maintained their advances. Wheat
gained 4 cents and cotton more than
dollar a bale.
Studying the Presidents speech, most
observers concluded he proposed to in
crease prices by taking advantage of
thel, known and proved relation to thu
value Of gold 1t is a tested economic
principle that when gold prices go up
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