Evening star., 1933-11-01
COLD PRICE RISES
HERE AND ABROAD
Britain Assured U. S. Move
Is Not Aimed at Under
mining Pound.
BY the Associated Press.

BY the Associated Press.
A jump in the price of gold both here
and abroad today accompanied Presi-
dent Roosevelt's preparations for quick
application of his plan intended to lift
commodity prices by purchasing the
yellow metal on European markets.
The administration advanced its fixed
price for Reconstruction Finance Cor
poration purchases of newly-mined do
mestic gold to $32 26, or IA cents above
yesterday and new high.
Meanwhile, the London bullion quota
tion increased from $3l.05 yesterday to
$31.52 today, both figures translated
into dollars at the days opening rate
Of exchange.
Thus, while the domestic price yes
terday stood SLOT higher than the
world price. the margin today was re-
duced to IA cents.
A part Of the shrinkage was due to
weakness Of the dollar as against the
pound 1t declined as low as $479H
today from $475 at yesterdays opening.
British Reaction Watched.
While officials evinced a determina-
tion to go ahead with the gold pur-
chases as quickly as the necessary ar
rangements could be made. they were
watching, nevertheless, for official indi-
cation of Great Britains reaction to the
plan, involving, as it does, dealings in
foreign exchange.
The London government had been
told the program was dictated entirely
by domestic conditions and was part Of
the Presidents general program for
raising prices here. Under no circum-
stances, it was said. could 1t be con-
Strued as an unfriendly gesture aimed
at undermining the pound or weakening
Britain's position in the world of COM
merce.
Sir Frederick Leith-Ross, special rep
resentative of the British treasury, to
whom was given the American assur-
ances that the coming operations were
not aimed at undermining England's
position in world trade, had an appoint
ment today at the White House.
Although the appointment was made
several days ago to talk over with Presi-
dent Roosevelt the status of negotia-
tions on revision of Britain's war debt
it was held entirely possible that Sir
Frederick might carry with him his gov
ernmentS views on Mr.. Roosevelt's
monetary program.
No Effect on Debt Talks.
The American and British debt nego.
tiatorS say that thus far the Presidents
new monetary plans have had no effect
upon their discussions These have been
in progress nearly a month and thus far
have been devoid OF any accomplish
mentS.
In fact, reports that will not down
have 1t that the conversations are about
to be given up. This situation was fore
seen as probably the most important
angle OF today's White House debt talk
involving a decision whether the debt
negotiations are to be continued.
The British negotiators are Leith-
Ross, Sir Ronald Lindsay, London's Am
baSSador here, and T. K. BeWley. eco
nomic adviser to the embassy. Under
secretary of the Treasury Acheson, chief
American spokesman, was asked to sit
In at the White House meeting.
The Chief Executive, while deter
mined to go ahead with his gold plan,
seeks to avoid antagonizing the British.
TO do so would invite reprisals and pit
American and English millions against
each other in possibly ruinous battle
1or control Of the exchange rate of the
dollar and pound.
Exchange Market Sensitive.
To pay for the gold that is bought
abroad, the Government must buv
pounds and sell dollars on foreign ex-
change. That market is unusually
sensitive at present. due to currency
uncertainties, and a large Offering of
dollars. economists say, would serve to
depreciate the dollar in its relation to
the pound.
Such result, it is held. would hardly
be acceptable to the British. The
London government is already equipped
with huge equalization fund, created
to protect the pound. and its millions
could quickly be thrown into the
contest.
Instead of starting such a currency
war, Mr.. Roosevelt is hopeful that the
British. accepting his assurances that
the move is dictated by the internal
situation and by no means by inter-
national animoSity. will permit a rea-
sonable degree of dollar depreciation.
At the same time, and as an instru-
ment OF attaining the latter, he hopes
to increase the price of gold abroad.
simultaneously, the Government will be
buying the new product of domestic
mines at high fixed prices. BY thus
increasing the price Of the metal, Presi-
dent Roosevelt hopes to induce q rise
in the price of commodities.
FRENCH WEIGH EMBARGO.