Evening star., 1933-10-25
ROOSEVELT FIXES
$31.36 GOLD PRICE
Fiuure Set at 27 Cents Above
World Markets-R. F. C..
to Pay for Metal.
Continued From First Pageo


gold is to be paid for bear interest at
one-quarter of per cent;
Jones in a statement said:
..The Reconstruction Finance Corpo-
ration will accept subscriptions Cooay
for its 9O-day debentures, payable IN
newly-mined gold, that is, gold recovered
from natural deposits in the united
States and any territory subject to It's
jurisdiction at the rate OF S3l3o per
ounce of fine gold.
THE procedure for depositing gold
in payment of subscriptions Will be
established today by an executive order
of the President and regulations OF the
Treasury Department"
R.F. C. Financing Changed.
In Offering the debentures, unsecured
bonds of the Reconstruction Corpora
ton the usual R. F. c. procedure was
changed. The transactions will be the
first time that such debentureS nave
been permitted to 60 to the general
public.
Heretofore, the R. F. c. has obtained
cash for its operations by selling the
debentures to the Treasury.
officials were unable as yet to state
Just how the gold transactions will be
executed, at what offices, by whom, and
the like, explaining that such informa-
ton would have to await details re-
naming to be settled and announced.
It was understood the debentures
would be issued with a face value in
excess of the price to be paid for the
gold purchased. The margin to be
large enough to cover the deduction
made by the banks in discounting the
securities.
Treasury experts were busy drawing
up the regulations Meanwhile, at the
Reconstruction Corporation, officials
awaited the reactions of the gold mining
industry to the offer.
Hopes for Higher Prices.
BY giving to gold a dollar value
greater than heretofore, the Chief Exc
cutive hopes to force prices, Of which
gold still is the basis, upward to levels
that will give the farmer fair return
and encourage the business man to
longer and bigger pay rolls.
With the Inauguration Of the new
system, the Treasury. abandoned its
practice of announcing daily gold
quotation based directly on world prices,
less shipping and handling charges. 1t
has been receiving new gold at this
figure for resale and export.
This Treasury price, which has been
in operation since September 8. has
f1uctuated violently, due largely to the
dance of the dollar on foreign ex-
change 1t touched its peak, $32 %, on
September 20 and fell to its lowest
point, S2901, on September II.
There was some talk today OF in
creasing the number of officials to
whom will be entrusted the task OF
keeping the new gold price adjusted to
changing conditions. 1t became obvl-
Gus they must have constantly re-
vised and up-to-the-minute informa- :
unofficially that it might be well 70
unoffcialy that 1t might be well to
add to the roster representatives OF the
Federal Reserve Board. the N. II. "A.
and the Labor Department.
The price set was an increase OF 81 .ot
cents an ounce over the world price OF
Yesterday as figured and announced al
the Treasury.
Will Reveal Nothing.
In quarters familiar with his mind
President Roosevelt was reported to be
gratif1ed with the public response to MS
gold move. AS to Wall Street reaction