Imperial Valley press., 1933-10-31
PUZZLED BY
ROOSEVELT s
COLD POLICY
Business Leaders Unable To
Understand Orders For Do
mestic And Foreign Buying.
HINT INITIATION COMING
Britain And France Quoted As
Not Wishing To Enter Into
Competition With U. S.
BY RICHARD L. GRIDLEY
United Press Staff Correspondent

By RICHARD l.. GRIDLEY
United Press Staff Correspondent
WASHINGTON, Oct. 31.-Another
showdown on the nations none
tary policy was foreseen in official
circles today as a result of eonfu-
sion over President Roosevelt's gold
program.
Business was puzzled by the plans
for both domestic and foreign gold
purchases. These apparently were
intended to force depreciation of the
dollar as means of bolstering the
commodity price structure. But un-
certainty and conflicting opinions
and indications of the result raised
the prospect of new moves.
One of the country's foremost &C.
onomists told the United Press the
gold purchases apparently we're the
administrations final monetary
plans before recourse to currency ex-
pansion. He described the purchases
as "a course over an uncharted sea,
the outcome of which cannot be
gauged in advance"
"If this does not work in raising
domestic prices" he said, ''the only
alternative is the printing of mon
ey. Even this might not work in
raising prices, unless the dollar sud-
denly was forced down to only
fraction of its preesnt value and
people lost confidence in the cur
rency.''
Mystery surrounding the Presi-
denis plans grew hourly. It was gen.
orally agreed he alone held the pro-
gram in his mind and would not re-
veal it until results of the current
operations can be determined. He
has reiterated over and over that
he will raise commodity prices, If
not by one method, by others. But
despite raise in the governments
bid for domestic gold to a new peak
OF $32.12 an ounce today, the prices
of principal commodities declined.
British Rumor Spreads
Reports that this government
would cooperate with the billion
dollar British equalization fund for
pegging the exchange values Of the
dollar and the pound in relation to
each other spread after two protrac-
ted conferences between banking
Washington officials and Sir Fred
erick Leith-Ross, British war debt
negotiator.
Foreign gold buying with the bill
lion dollar stake of the ReconStruc-
ton Finance Corporation has been
likened many times to the British
exchange control machinery with o
like amount of capital.
Whereas the British fund during
the past year has confined us acti-
vities to smoothing out of foreign
exchange fluctuations, the Ameri-
can plan is described as deliber-
ate attempt to force down the price
of the American dollar.
1t is geneally believed that the
administrator would not attempt
this program without some agree
ment with the British or other for
eign governments.
LONDON, Oct. 81. W.P)-The Bril-
lloll SObcIlullcIlt lS dIlAlOuS W dvSIt
currency war with the United
States, it was stated authoritative
ly today soon after a mysterious
buyer had purchased 81 ,426,500
worth of South African gold.
There was no definite indication
that the United States was the buy
er of the African gold Among bull
lion dealers it was reported there
had been no American inquiries for
gold
PARIS, Oct. 81. U.P)-The French
government will refuse to engage in
any currency contest with the Uni
ted States, or to strike at Presi-
dent Roosevelt's gold buying pro-
gram, the semi -official newspaper
LIE Temps indicated today, coinci-
dent with London advices that Great
Britain was eager to avoid threats
of monetary war.