Evening star., 1933-12-29
NEWANT|-H0ARD|NG
ORDER DIRECTED At.
EXTENSIVE HOLDERS
Morgenthau Expects to Get
Several Millions by Mop
ping-Up Process.
n. F. c. BUYING PROGRAM
WILL NOT BE AFFECTED
One Phase of Edict, That Relating
to Penalty Involved, Still
in Doubt
BY the Associated Press.

BY the Associated Press.
Acting Secretary Morgenthau said
today his new anti-hoarding order was
directed at the big hoarder and that
the Treasury expected to get in several
millions in gold and yellow backs.
There is several million around IN
the banks and other places and we are
going after it." Morgenthau told news
men. The drive is still against the
big hoarder, not the little one. but We
think small holders will come along and
turn in their gold.
ITS mopping up at the end of the
year l think we'll get several millions.
We mean business"
Asked whether the Treasury was 60
ing to call in gold held by Federal Re
serve banks, which constitutes three
quarters of the Nations monetary gold
stock Morgenthau replied:
Il just can't discuss that. We're on
a 24-hOur basis"
Morgenthau said the new order would
not alter the Reconstruction Finance
Corporation gold purchase policy. To-
day the corporation again quoted a
price of S3406 an ounce for newly
mined metal.
1t was the ninth time this figure
was repeated. Bar gold in London
was worth s32 o3 on a sterling open
ing Of S5.07 and 2, cents to the pound
One phase OF the new gold order,
the penalty involved, was still in doubt.
Under President Roosevelt's proclama
ton against boarding. the penalty was
$4,000 fine, 10 years imprisonment, or
both Morgenthau'S order places it at
twice the value of the gold held.
Treasury legal advisers expressed the
view that the new double penalty pro-
vided in Morgenthau's order would apply
to holders Of gold in amounts up to Sl00,
while for those holding in excess Of this
amount both the new ard old penalties
could be applied
Believe Penalty More Effective.
In practical operation, it was be-
would be more effective against big
hoarders who would rather pay the
fine than surrender their gold.
There was no indication the old pen
atty of $4,000 fine would be urged
against small gold hoarders.
In my Judgment. such action is
necessary to protect the currency system
of the United States. Acting Secretary
Morgenthau said in issuing the order
The new Treasury command was in
terpreted as having two major aims: 1t
eliminated the S100 exemption allowed
holders of gold and gold certificates by
President Roosevelt's previous proclama-
ton and it sought to close legal loop
holes whereby large hoarders might seek
to evade the policy in the courts.
While the Treasury declined to say
so officially. a recent New York Federal
Court ruling that Mr.. Roosevelt S
original anti-hoarding order should have
been issued by the head Of the Treasury
was considered a major factor in
prompting the new command.
No immediate estimates were avail
able on how much gold and gold GER
tificateS the Treasury would gain
through the new ruling
,220,9O0, 900 in Circulation.
Last February. just before President
Roosevelt stopped the use of gold money,
there we're Sl,220.9 100000 in circulation
that is. outside the Treasury. OF this,
SSH .337, ,0C0 was in coin and bullion and
S649 563 900 in certificates.
BY the end of November, the circula-
ton figure had dropped to s528,530,000
-S3ll ,044,000 in metal and S2l7, 7,406, 600
in certificates. Most of the difference
was turned in voluntarily. but about
s4OO0O,OOO was obtained from hoarders
through the Justice Departments per-
suasion
Treasury officials do not expect to
take in the entire half billion now lin
circulation"
Some of this, they explain. has been
lost. some taken abroad, some destroyed,
while part of the bullion likely has
found its way into commercial channels.
Nor was the new move expected to
vary President RooSevelt'S gold-buying
program by which the R. F. G. has
spent S18,785,OO0 on newly-mined do
meStic metal at prices ranging from
s31.36 an ounce to the present peak
Of S34 .o6.
compliance with his order, saying simply
the gold should be delivered forth
with" Other "coin or currency will
be paid for the delivered stock. Bullion
will bring the legal mint price of S20.67
an ounce.
Rumors Immediately springing up
that the move foretold early devalua-
ton of the gold dollar lacked any off,
cial confirmation. In this connection.
it was emphasized the largest portion OF
monetary gold stocks still is held by the
reserve banks.
Five Exceptions Made.
Morgenthau made five exceptions to
a general order. They were:
Gold bullion held under Federal
license.
Rare and unusual gold coins valued
by collectors, but not including the
$3.50 gold piece.
Unmelted scrap gold and gold sweep
ings not exceeding 500 belonging to
any one person; gold possessed for in
dustrial, professional or ornamental use.
Gold coin, bullion and certificates
held by reserve banks and the Recon-
struction Corporation.
Gold bullion and foreign gold in the
possessions and territories, except
Alaska, owned by persons not domiciled
or doing business in the United States.
Latest Treasury figures put the United
States monetary gold stock at $4,323,-
600, 900. >Todays Federal reserve condi-
ton statement listed gold reserves OF
the y banks at s3,568, 10000.