Evening star., 1933-11-10
GOLD IS EASED Off
TO CHECK DOLLAR
DECLINE ABROAD
Price Here Set at $500
to Halt Drop in Foreign
Markets.
TREND TURNED UPWARD
BY ACTION OF R. r. C.
Stock Market Dull-U. S. Govern
ment Issues Sag-Commodities
Continue Advance.
BY the Associated Press.

BY the Associated Press.
The administration fixed its price for
newly mined gold at a point below the
world dollar quotation for the first time
today, an acton interpreted in some
quarters as indicating an effort to check
the rapid decline of the dollar, which
just previously had struck another new
low level.
With London dispatches telling Of an
exchange rate ranging from s5.13 to
s5.16a and a gold quotation there of
$33.26 at the strongest exchange rate,
officials here set the price to be paid
for newly mined domestic gold at
$500, an advance of only cents since
yesterday.
Whether the easing of of its policy.
OF almost daily increases in the donses-
tic price would be accompanied by some
contraction of gold purchases abroad,
administration officials would not re-
veal. They have consistently declined
to divulge the extent of their activities
on the foreign gold exchanges.
Concerned Over Bond Decline.
The heaviness of United States Gov
ernment bonds, which developed stimuli
taneously with the severe decline in
the dollar, is known to have caused
officials some uneasineSs, but they were
reticent to say whether or what steps
would be taken to counteract the trend.
Economists said that aside from cut
right stabiliZation of the dollar and
whatever benefit could be gained from
easing of the gold operations, the Gov
ernment had but one course open to it
for direct action to sustain the Govern
ment bond market.
This, it was said, would involve the
Federal Reserve System expanding its
open market operations to a point of
practically unlimited buying of Govern
ment securities, thereby creating a de-
mand which would hold the price at
satisfactory level
To pay for the bond purchases, it
was added, 1t probably would be neces-
sary for the Federal Reserve banks to
issue currency against them. as it is
authorized to do. 1t was pointed out
this would be outright imitation of a
sort which officials have said President
Roosevelt believes undesirable.
For several months the Reserve banks
were buying Government bonds at a
rate OF SIS, 200, 900 to sac, ,0o0, 900 weekly.
Several weeks ago this was reduced to
Sl0,o00.o00 week. which was continued
in yesterdays weekly statement Of the
Reserve System.
The United States gold policy, OIL
clals say, Is narrowing trade benefits
other countries have had by reason of
deprecated currencies, but there is still
hope here that monetary war will be
avoided.
Other Quotations.
AS the price of gold abroad was
raised from $33.05 to $3315 an ounce
yesterday the new issue of Treasury
4A-3A's dropped more than 1.6 points
TO close nearly a point under par
Wheat rose 33s to cents and stocks
moved sharply upward in New York, as
the movement of funds into commodi-
ties and equities gained impetus.
The pound rose to S5.0534 in London
and $5.l4A in New York, and OBJ
servers failed to discern evidences of
retaliatory action by Great Britain.
Especial interest continued in the
action of the French franc, which
rose, too, as compared with the dollar.
Although France has announced
firmly its intention of remaining on
gold. the withdrawal of an additional
quarter billion gold francs in the week
sharply to the strain which is being
placed on it.
N