Evening star., 1933-10-30
AMERICAN GOLD
BOOSTED 13 CENTS
Republican Senators Criticize
Decision to Enter World
Market.
Continued From First Page.)


whether such a step will work out in
practice IN these times. However, it is
step in the right direction and is
worth trying"
Senator Couzens of Michigan, Repub-
lican independent member of the
Banking and Finance Committees. said
he had not the slightest idea where the
administration is going" and was quite
sure it is not on the right road; adding
that everybody is disturbed about the
outlook and hesitant as to our money
policies"
Senator Reed Of PENNSYLVANIA. Re
publican member on the Finance Com
mittee. contended:
If we attempt TO buy gold ABROAD
it will mean that the whole world will
throw a wall around themselves as far
as the export Of gold is concerned. 1t
will lead to a complete disruption Of
foI eign exchanges.
This is a very unwiSe policy and
after the President has tried it for a
few days he will realize and, l hope,
back out of it.
Senator Nye. North Dakota Repub-
ican independent. said he could not
"enthuse' over the program.
Bvrns Sees Initiation.
Representative Byrns Of Tennessee,
Democratic House leader. told inter
viewers President Roosevelt may have
10 resort to reasonable and controlled
initiation" if his present policies do not
accomplish the desired ends.
Something must be done to increase
the price of commodities and the farmer
must have some relief" he said.
we are trusting the President to do
it without initiation, but reasonable and
controlled initiation may be necessary.
We are willing to leave 1t to the Presi-
dent. We all realize the danger of in
fiation. but as a last resort it may be
necessary.
IF recovery can be brought about
without it, it would be far better
Byrns said there was much optimism
throughout the South over N. R. A.
progress and limited legislation might
be pushed in January to permit Recon-
struction Corporation loans to small
merchants to help them out with in
creased costs due to code operations.
Unless there is an expansion o.
credit by the banks which will permit
the smaller business man to take or
the increases in overhead growing out
Of the N. r. A." he said, "it may be
necessary to provide for direct loans
from the r. F. C. in proper cases. OF
course the question OF collateral Tor
such loans would enter into the ques-
ton. and proper safeguards must be
taken before the money is loaned
When the system Of fixed quotations
bv the R F. C. was begun last Wednes-
dav. the price was S3l 36 an ounce and
each succeeding day has seen from 6
to % cents added to the previous day S
figure.
Mr. Roosevelt stated last night after
a lengthy talk at the White House with
Government financial leaders that the
machinery for purchasing gold abroad
would be set up Immediately
President Dissatisfied.
This was unofficially interpreted as
meaning he was dissatisfied with for
eipn influences on his price recovery
campaign. The White House parley
followed a drop on Saturday in the
London gold market while the Amerl-
can Government was again advancing
its price for ore newly mined in this
country.
The London drop brought a differ
entail between that market ana re
United States of SIPS an ounce Also,
there was an apparent feeling mere
that the dollar was not IN line on tne
foreign exchange with the new Ameri-
can gold elevation movement
So, Mr.. Roosevelt decided to go into
the foreign markets and place his game
On a world scale with the determlnation
to control the gold value of the dollar:
This is preliminary to revaluatlon OF
the dollar and the establishment OF the
Roosevelt proposal for a managed cur
rency to bar violent price fluctuations In
the future.
It is expected here that it will take a
couple of days, at least. to put up the
machinery for gold purchases abroad.
The President has directed that TINS oe
done through the Reconstruction Cor
poration. which is making the domestic
purchases of newly mined gold.
The presence here yesterday OF OF
f1cials of the New York Federal Reserve
Bank led to the opinion that this mstl-
ton would be employed as the agency
for making the foreign purchases.
Authorizes Statement
After the three-hour parley. the Presi-
dent authorized Stephen Early, secre-
tary, to state:
"At an informal meeting in the White
House the following gentlemen con-
ferred with the President: Dean Ache
son. Undersecretary of the Treasury
Eugene Black, governor of the Federal
Reserve Board; Jesse Jones, chairman
of the Reconstruction Finance Corpora
ton; Henry Morgenthau, jr., governor
of the Farm Credit Administration;
George Harrison, governor of the Fed
eral Reserve Bank of New York; Henry
Bruere of New York, j. E. Crane and
Fred Kent, members of the New York
Federal Reserve Bank: ProfS. George
; Warren and James H. Rogers.
The subject under discussion was
the immediate setting up of machinery
| under which the Government, through
the Reconstruction Finance Corpora
| tion, will be enabled to buy gold in
the foreign markets"
With America offering the highest
price for the metal, there seemed little
, doubt here that much of the worlds
supply of newly mined gold might be
attracted to this country, unless re-
| stricted by limitation.
The amount of the purchases to be
| made was not defined If market is
| provided for whatever amount offered
| then the program is conformable in
every respect to a free gold market
| it was said.
! President Roosevelt has been repre-
sented as being dissatisfied with the
reSDOnSe 0f commodity markets tn his