Evening star., 1933-12-11
GO[D-RUNN|NGR| RING
SUSPECTED BY j. s.
Total of ST. 900 Believed
to Have Reached Canada
in Last Six Months.
By the Associated Press.

BY the Associated Press.
A telegraphic report disclosed today
that the United States apparently sus-
poets an organized effort to export gold
in violation of President Roosevelt S
monetary policy.
A telegram to the Customs Bureau
said the border patrol had co-operated
with Canadian officials in activities to
stop gold smuggling which resulted in
the arrest in Canada of two Americans
with 100-ounce gold bar.
Customs officials declined to say how
large a gold movement might be in
volved. Reports from Canada indicated
belief that 81 100000 in gold has been
smuggled across the border in the last
half year.
The Justice Departments Bureau OF
Investigation said it was without evi-
dence of any large smuggling ring. This
reply indicated the border patrol was
acting on information not known previ-
ously to Washington, for customs Off
cials also lacked knowledge Of this Gov
ernment's part in the Canadian seizure
until they asked border agents for a
report.
Must Have Licenses.
Under regulations issued by President
Roosevelt, only licensed dealers may
handle gold legally. All other gold and
gold certificates must be turned IN to
the Treasury.
The administration today renamed a
price OF $3401 an ounce for r. F. C.
purchases of newly mined gold, figure
that has prevailed since December /.
This was S1.21 an ounce in excess of
the world gold price set at London for
bar gold, which advanced pence to
127 shillings an ounce, equivalent to
$3.50 an ounce.
In the meantime the dollar displayed
a new weakness on the international
market, opening at s5l612 at London,
compared with S5151a at Saturdays
close, and later slumped to s5.17k in
the first half hour of trading.
Meanwhile, Treasury officials main
tanned official silence concerning the
reported gold leak which enabled Lon
don to obtain the domestic price in ad-
vance of the official announcement
made daily at the Treasury at 9:45 am.
E. S. T. 1t was understood, however,
and not denied at the Treasury. that
an investigation was being conducted
to determine the accuracy and founda-
ton of the report.
London Doubts Report.
Well informed financial quarters in
London were inclined to deprecate the
report, foreign dispatches said, regard
ing it as ''an attempt to pin something
on somebody here"
Reports that stabilization of the dol
lar was again imminent were not veri-
fed by Treasury SpokeSmen.
Herbert CASTOR, public relations coun-
sci at the Treasury, suggested recur-
ring rumor that England and TIE
United States had discussed but not
agreed upon immediate stablization was
the fruit of private deductions based
on the unchanged gold price during the
last IL days.
I'VE certainly do not know anything
about it," he declared.
In answer to questions by newspaper
men, William Phillips, Acting Secretary
of State, asserted the American Ambas-
sador in London had made no dollar
and-pound stabiliZation overtures and
the State Department had not raised
the question with the British Ambassa-
dor in Washington.
Phillips denial was prompted by a
newly published report that persons act
ing for the United States had made
overtures to the British government for
an immediate survey of the situation
of the dollar and pound with a view
to stabilization on two recent occa-
sions.
Buys 100000 Ounces.
Meanwhile, it developed that the
r. F. c. so far has purchased 420, 900
ounces of domestic gold.
Jesse H. Jones, chairman, said to-
day the total cost was $14,000,00G.
AS usual, he refused to state the
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