Evening star., 1933-12-08
Gold Maintains $34.01 High
for Seventh Consecutive
Business Day.
$2,714,0OO,0OO OFFERED
TREASURY WITHIN DAY
Administration Elated Over Re.
sponse of Country and Sees
Soundness Of Monetary Policies.
BY the Associated Press.

BY the Associated Press.
The Treasury said today that SUBJ
scriptions on its $3.50, COO 900 one-year
security issue exceeded that figure by
nearly three times.
In one day offers for this 2A Der
cent issue were placed at $2,7l4, ,00o, 900
in round numbers.
Acting Secretary Morgenthau made
public the amount Of subscriptions OBJ
tained yesterday and was represented
as highly pleased with the success of
the borrowing.
Meanwhile, the Government main
tanned for the seventh business day q
gold price Of s3401 an ounce.
1t represented the longest duration
Of one figure since President Roosevelt's
gold policy was established.
Just before the high Of $340I was
reached the price of 1876 prevailed
for six business days.
Foreign Purchases MI.
The unusual repetition of the price
conceded with another significant fac
tor as well as yesterdays single day
oversubscription to the issue of 2k
per cent notes. Foreign gold purchases,
according to- Chairman Jones of the
Reconstruction Finance Corporation
have not been SUFFICIENT for q good
piece of bridgework."
The Reconstruction Finance Corpo-
ration must take all new domestic gold
offered, however, and has paid out $l1,-
100000 in this way.
Oversubscription in a business day
Of the $3.50 900, 900 issue of one-yeaI
pa per cent certificates was not un-
usual of itself For the past several
years all such Treasury offerings have
been taken in a single day. This was
the case in October when $500 900 ,00C
of 10-to-12-year bonds were sold fol
cash just before gold buying began.
But considered as the first major
financing since the beginning of the
gold program, success of the issue was
said in Treasury circles to gain special
significance in view Of a forecast by DR..
c. M. w. Sprague-who resigned re-
Gently as financial adviser to the Treas
ury-that 1t might become necessary
to resort to greenbacks to meet debt re-
quirements.
Importance Emphasized.
Its Importance to the administration
was emphasized by the fact that first
announcement of the oversubscription
came from the White House instead
of the Treasury's routine channels
Treasury officials openly expressed their
great satisfaction at the success of the
borrowing, the President having ordered
the books closed at 4:30 pm. yesterday
after they were open only a few hours
The only reply Of Treasury officials
to criticism of their monetary policies
has been that they have unlimited con-
f1dence in the soundness of the Gov
ernment's securities as an investment,
and a statement from Acting Secre-
tary Morgenthau that the national
credit was as solid as the Rock of
Gibraltar"
Certificates to Be Retired.
OF the $3.50 900 900 borrowed, $727,-
100000 will go to retire certificates of
Indebtedness maturing December is,
and $114.000,000 will be paid out in
interest on the public debt. The re-
mainder will be added to the $1,000,-
100000 in the general fund Of the
Treasury and used to pay the routine
expenses of the Government. Holders
of the maturing certificates were Of
fered equivalent amounts Of the new
issue in exchange at par.