The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1933-10-28
Managing Money 4. ''s n. e p s.i
KEEPING THE DOLLAR AND COMMODITY PRICES IN STEP

lBy Associafea Pressl

(By Associated Press)
NEW YORK, October %.
The Roosevelt dollar con-
troll program is the newest
financial pillar in the ma
TONS changing economic
structure.
It takes its place beside other
recovery and price sterilization
plans inaugurated indirectly dur
ing the bank moratorium last
spring.
The purpose of the plan is to
manage the purchasing power of
the dollar through establishment
of a domestic gold market and the
purchase and sale of gold in world
markets to accompany rise in
commodity prices.
The administration in Wash
ington has decided in effect that
the producer and farmer must
have a higher dollar price for his
wares.
Gold Price Adjustable
As a means for maintaining sta
bilized prices at a higher level,
the price of gold will be establish
ed through the Reconstruction Fl
nance Corporation from time to-
time after consultation with the
secretary of the treasury and the
president. They may raise or
lower the dollar price of gold at
will.
If more dollars are necessary to
given amount of gold.
then more dollars will be required
to purchase a given amount of any
commodity.
And in the same manner. IL IA
argued. the government viii have |
an effective check on prices reach
ing too high a peak. If prices be-
come too high, the government
could reduce the number of dollars
necessary to purchase an ounce Of
gold.
Not Only Domesiic
The Sterilization plan also caS
be carried into world markets
through purchase and sale of gold
to establish dollar levels in foreign
exchange.
This new prize establishment
plan for commodities tops many
indirect plans since March 4 when
q new administration took charge. |
Most far-reaching in the number
of persons directly concerned is
NRA. Through this plan the adj
ministration proposed to increase
employment and payrolls, meaning
an increase in purchasing power
of the consumer. Any increased
demand has q price increasing eff !
feet.
Through the Agricultural Adj
justment Administration thousands
Of acres of farm land were retired
from production. Any decrease in |
supply has . price increasing eff
feet.
Banking Laws Adjusted
Banking laws were adjusted to !
credit expansion which |
leads to an increase in the velocity |
Of money circulation.
The Public Works Administra-
ion pumped millions into construc-
lion channels, q procedure which
ed to increased employment and
consumer purchasing power.
Debt-ridden home owners and |
farm owners received aid through /
special branches Of the govern
nent.
Russian Trade Gains Seen
Conferences recently called by
he president with officials Of the /
U. s. S. r. may lead to recognition |
II Russia. and resumption Of Dip
omatic relations with the commun-
st nation after i6 years points to
saluable trade agreements
The administration sought trade |
increases through establishing ma
.hinery directed At freeing more |
than a billion dollars In closed |
banks
Recent open market purchases
By the government Of farm pro-
duets 10 aid the needy have in
creased prices in many quarters
But this final pian Of control
through dollar management Is = |
direct means 10 . predetermined
end.