Evening star., 1933-10-31
|SPREAD INCREASED
| IN PRICE Of GOLD
World Market Drops Sharply
as r. F. c. Pushes Bid
Up to $32.12.
Continued From First Page.)

international struggle, finding its basis
in British effort TO depreciate the
pound as compared with the dollar.
| and an American attempt to depre-
ciate the dollar in relation to the
pound, might prove disastrous to both
countries.
The British fund has always worked
thorities and several times has. helped
the latter to pull the Franc out of
difncult situations. France is strug-
Cling at present to retain a precarious
hold on the gold standard.
Could Force France Of Gold.
II Great Britain and the United
States should work in cooperation and
let both the dollar and pound slide in
relation to the franc, economists agree
that France could very quickly be
forced of the gold standard.
However, with dollar and pound al
ready deprecated by contrast with their
gold par relation to the franc, both
England and America enjoy a trade
advantage in their dealings with France.
Consequently there is no expectation in
informed circles here that any move is
contemplated designed to drive France
of gold
When prices have risen to the point
satisfactory to Mr. Roosevelt and he is
able to sta bilize the dollar by restoring
its gold backing, it may become ad-
Vantageous to have France on the
same monetary footing, or lack Of it.
That, however, is for the future.
Plan Is Criticized.
From opposite sides of the monetary
question, the Roosevelt plan was criti-
cized yesterday. Holders of such op-
posed views as Senator Thomas, Demo-
crat, of Oklahoma, of the congressional
imitation bloc, and Senator Reed. Re
publican, Of Pennsylvania, spokesman
for the conservative Republican old
guard, found a common ground in
criticism.
Thomas foresaw some benefit, 'theo-
retically and psychologically," but little
actual help" Reed pronounced the
plan a very unwise policy" leading to
complete disruption Of foreign ex-
changes"
Meanwhile, commodities and stock
both reacted yesterday after an early
day rally, which accompanied 10-cent
break in the dollars relation to the
pound. As the day wore on, however,
the dollar regained half its lost ground
and domestic markets sagged. In the
last hour stocks lost 81 to So. Deem
Der wheat closed unchanged, but other
futures lost more than cent bushel.
Reed and Thomas were not the only
congressional commentators to see flu
ture dangers in the Presidents policy.
Chairman Fletcher of the Banking
Committee said that while the gold pur-
chases might "coerce" a price rise here,
it was quite a question whether such
step will work out in practice in these
times"
Nye Not Enthusing.
Senator Couzens, Michigan, Republi-
can independent, said he had not the
slightest idea where the administration
is going" and added he was quite sure
it is not on the right road" Senator
Nye, independent Republican Of North
over the program.
If the gold purchased is placed in
circulation or used to back money"
said Senator Thomas, "the new policy
will be all right. But that won't hap
pen. In the first place, We won't get
much gold to speak of. In the second
place, if We do it will not get into cir
culation"
IF we attempt to buy gold abroad"
said Senator Reed, lit 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 foreign ex-
changes"
Representative Byrns of Tennessee,
Democratic House leader, predicted
reasonable and controlled imitation"
if present policies do not achieve the
results of increased commodity prices.
We all realize the danger Of infia-
tion," he said. But as q last resort,
1t may be necessary"