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P
A. SIXTY
HONG KONG DAILY PRESS, WEDNESDAY, JANUARY 17, 1934
CENT AMERICAN
GOVERNMENT TO TAKE OVER ALL GOLD
Roosevelts Message to Congress
Washington January 16. Sixty per cent. revaluation of the United States, dollar 15 urged by President Roosevelt, in his message "delivered in Congress, yesterday. While stressing the importance of silver in monetary system of the world, the President withheld his own silver message.
ROOSEVELTS MESSAGE RECEIVED
FAVOURABLY
President Roosevelt's
has generally favourably impress-
message 1 "The President will be authoris- ed by the present legislation to ed the New York commodity mar-fix a lower limit, permissible for kets. Anticipatory buying was revaluation, at 50 per cent.
"A careful study leads me to followed by rather heavy selling, but offerings were taken on slight believe that any revaluation ex- becoming ceeding 60 per cent. of the present reactions, with buying
Therefore, I re- more active on, the announcement statutory value would not be in
public interest. of a new gold price.
commend that Congress x the upper limit of permissible revalua- tion at 60 per cent.
are
Some radical inflationists disappointed at President Roose velt's stand against "monetary in- flation, while some more specula- tive silver interests hoped for a more definite statement.
hals
Senators Carter Glass, (Demo- cat), and Daniel Hastings, Re- President publican), stigmatise Roosevelt's action as robbery. The anthracite miners of Wlikesbarre Pennsylvania, numbering 15,400, have struck after a dispute with rival Trade Unions.-Reuter. in President Roosevelt, message to Congress stated:-
"In conformity with the pro- gress we are now making in restor- ing a fairer price level and with the purpose of arriving, eventual- 1y, at a less variable purchasing Dower for the dollar, I ask Con- gress for certain additional legis- lation to improve the financial and monetary situation.
"By making it clear that we are establishing permanent metallic It serves in the possession of the. Federal Government, we can or-. ganise a currency which will be sound and adequate."
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The message declared that con- trol of currency was the high pro- rogative of the Government,
"Many advocate gold and silver, elther separately or with a fixed ratio, as a basis for currency. the message stated.
"We hope that despite the pre- scnt world confusion, events are leading to some future form of agreement in times of Ccneral
The practice of trans- emergency. ferring gold individually or inter- rationally is not only unnecessary but in every way. undesirable.
"In order that we be further, prepared to bring a greater degree of stability in foreign exchange rates, there should be added to the present power of the Secretary of the Treasury to buy and sell gold; at home and abroad, the express power to deal with foreign ex- change as such."
$2,000,000,000 FUND
From the profits of any devalus- tion, the President suggested that there should be established a fund of U.S.$2,000,000,000 for the pur- chase
and sale of gold, foreign exchange and Government securi- ties, as the regulation of currency, welfare of the United States may maintenance of credit and general
require.
ite
foreshadowed amendments to existing legislation relating to dealings in gold and other mone-" tary matters, and added that the other precious metal, silver, had been used from time immemorial as a metallic basis for currency and also as actual currency itselt. "It is used as such by probably half the population of the world, and it constitutes a most important part in our own monetary struc-. ture." he stated.
"SILVER CANNOT BE NEGLECTED" "Suver is such a crucial factor in much of the international trade of the world that. it cannot be neglected."
tion Finance Corporation's price.
The formal announcement re- garding the matter is promised
later.
M. Morgenthau, has set Wednes- day night as the "deadline for delivery to the Treasury of all gold held by individuals, not including the Federal Reserve Banks, whose total holdings are estimated at over £700,000,000.
DOLLAR
her policy has relieved the marketa of apprehensions. It is felt a de- inite step has been made towards international currency stabilisa- tion.
The chief reaction on the Stock Exchange was keen, Interest in Gold Shares, Kadirs, West Aus- trailarik, and West Africans all advancing.
!
American shares reflected the overnight strength.
On Wall Street, on the contrary, guit edged securities and rails were sold to provide funds for future Textiles speculative Investments. were easier owing to feats of in- tensified competition in America by Japan as it is feared the latter may further depreciate her..cur-
rency.
SAAR. REGION QUESTION
Grave Aspect Anticipated
Geneva, January 18. .The. Saar region question is as- suming a more grave aspect than was anticipated.
EARTHQUAKE IN A TERRIBLE
INDIA
Most Serious Since 1897
-Bombay, January 16. Twenty-Ave people have so far been reported killed "here in the
ACCUSATION-
Alleged Cold-Blooded Murder
Chicago, January 18.
A terrible accusation that Dr. Alice Wynekoop was the cold- blooded slayer of her daughter-in- violent earthquake shock which was felt throughout India, yester- | law, Rheta, although Alice was the The President of the Governing.
day afternoon. Two hundred, at object of her greatest love was made by the prosecutor at yester- Commission is shortly expected to
before the least, have been injured. lay -tresh evidence
day's sitting of the surgery murder trial. League Council regarding the vio lence of Nazi `propaganda in the Baar.
There is even a strong belief that the occupation of the terri- tory by international: military forces will be, envisaged when the League Council discusses the sub- ject at the end of the week Reuter.
The eathquake, which was the most general since 1897, extended over an area from Gujerat in the west to east Gengal and from the Madras Presidency to the Himala- yas. Punjab was the centre of the disturbance.
ཧཱུྃ༔
The Prosecutor alleged that the object of the crime was to secure the insurance money on Rheta's financially enibarrassed by mort- life, the Wynekoop family being
the other
It appears that the districtgages on their home.
The premiums about 1,000 miles east of Bombay and 100 miles north-west of Cal-policies were unpaid.-Reuter. cutta was affected.
Foreign exchanges show further weakness with sterling compared with gold currencies. It is believed due to heavy purchases by Ameri- Gurencies can gold and gold The Reconstruction Finance Cor-
mostly through London poration increased the gold fund I are inclined to believe that this is to $150,000,000, all but $25,000,000 an indention of a vague ander- NAZI REFUGEES homeless. Many of the dead and
Some
and
standing between British American authorities to prevent the collar depreciating heavily against sterling.
American
IN HUNGARY
Now Interned At Gyula
of which has already been used.
totalled Domestic purchasea 681,000 ounces, valued at $22,698,- 000 besides $97,000,000 foreign gold. Mr. Jessee Jones, Chairman of
Silver is inclined to ease; al- the Reconstruction Finance Cor- poration said the dollar revalua-though the market belleres Mr.
Induce large tion will leave the Corporation with Roosevelt's speech contains noth-
ing to a gold profit, because it can sell
Commodities are higher in sym- gold overseas. He indicated that holders to sell the Co-operation's foreign gold was ear-marked for London and Paris.pathy with the favourable Ameri-[Special to the *Hong Kong Dally
President Roosevelt has issued can reception of Mr. Roosevelt's
orders for the speech-Renter. three executive Government regulation of foreign exchange transactions, extending the Hcence policy to individuals as well as banks.
The White House has explained" that the orders are substantially the same as the regulations issued
SILVER MARKET
on March 10, but instead of apply- (From Our Special Correspondent) ing only to banks they now apply
to all persons dealing in foreign exchange.
•
The new orders are said to be intended to pave the way for deal- ings by Mr. Morgenthau, the Secrt- tary of the Treasury-Reuter.
DOLLAR AND FOUND FALL Paris, January 16. The dollar and the pound fell here yesterday in anticipation of message Roosevelt's President which did not reach Paris until the Bourse had closed.
The Bourse, though somewhat nervous, has no fears in regard to the stability of the franc.
The French are highly destrous that the pound should not drop pari passu with the dollar, but it is regarded as unlikely that the money market is Paris will be much affected-Reuter
LITTLE REACTION IN LONDON
London, January 18. There is as yet, but little re action in London to President Roosevelt's speech, owing to the news arriving after business hours. It is generally felt, however, that 60 per cent. dollar revalua He recalled the proclamation of tion, though imposing consider- December 21, providing colnageable strain on France and Eng- land, will be temporarily bear- for newly-mined silver.
able pending a final international agreement for which President Roosevelt is believed to be head- ing.
"By this measure we are increas, ing our reservés, of silver bullion, thereby putting us among the first nations to carry out the Silver Agreement," he said.
"The transfer of gold in bulk was essential only for the payment of international trade balances." and therefore it was prudent to vest in the Government the title
"This Agreement is distinctly a to possession of all monetary gold
We step in the right direction. within its boundaries, keeping that
are proceeding to perform our part gold in bullion rather than in coin.
"We had already called in the of the agreement after reviewing gold possession of private indivi- the pledges given at the World duals and corporations. There re-Economic Conference."
"If all these undertakings are mained a large weight of gold in
carried out by the Government's Possession of the Federal Reserve Banks, although under the existing concerned." he continued, "there law, there was authority, by Execu will be a marked increase in the tive Acts, to take title to all supuse and value of silver. plies of American-owned monë- tary gold.
"This is a step of such import- ance that we prefer to ask Con gress, by specific enactments, to
"Governments can well employ silver as a basis for currency. I look forward to a greatly increased use of silver."
"However, I am withholding any vest in the United States' Govern recommendation to Congress look- ment all supplies of American-ing to further the extent of the owned gold with the provision for monetary use of silver, because I payment thereof in gold certif- believe that we should gain more knowledge of the results of the London Agreement by our other President measures!" monetary Roosevelt added.
cates.
GOVERNMENT OWNERSHIP
will be "The gold certificates secured for all times as now dollar for dollar, by gold in the Treasury of such weight and flueness as may be established from time to time.
ידי
TWO MAIN PRINCIPLES President Roosevelt stressed "two principles.
Firstly, that national currency must be maintained as sound cur- rency, having a fairly constant purchasing power, and that it must be adequate for daily use and the establishment of credit.
i.
London, January `16." Following are the Silver Quota- tions on, the London market to- day:
Jan. 16 Jan. 15. 194 19.11416 191 101
Spot Forward
The London on New York cross rates to-day at 2 pm. closed at £UB. 85.11.
HOW WILL IT EFFECT BRITAIN?
all
Press" (Copyright.)]
The
Ninety people were sent to hos- pital at Patina, where fabulies are
injured are lying in the debris." The damage at Cays is report- ed to be as heavy as at Patna, but no details have yet been re- ceived.
A GREAT SURPRISE
EUROPEAN WOMAN KILLED. Mr. Granville Visits
London, Januby 18:
shock, A severe earthquake. causing some loss of life, was ex- perienced over a large part of India" yesterday.
In Calcutta. tremors lasted three minutes, but, although some alarm was caused and a number of buildings were damaged, no one was seriously injured.
Budapest, Jan. 15. The Austrian Nazi refugees who crossed the Hungarian border a few days ago have been interned
It is believed that nine, people at Gyula, a small place near the
were killed at Gaya, Bihar, and eastern border of Hungary, Austrian Nazis said they prefer-eight at Patns, while at Jamalpur, red to leave their country rather, the Bengal Station Buildings col- than being maltreated "at home", lapsed, killing the wife and child- in concentration camps-Trans-ren of the European Manager of the Railway Workship and the ocean Kuo Min.
wife of the local Medical Officer.
Several buildings also collapsed at Benares. Lucknow, and in towns In the United Provinces. "Tremors were only alightly felt at Bombay. It is believed that India escap- ed the centre of the disturbance, which was recorded on seismo- graphs in Great Britain as one of
THE ITALIAN BUDGET
Vienna
[Special to the "Hong Kong Dally: Press" (Copyright.}}
Vienna, Jan. 15.""
caused on Great surprise was Monday by the unexpected arrival of the British Foreign Minister's Although his purpose wES parliamentary secretary, Mr. Gran- vlile. officially stated to be "Private." Granville on the first day had long conversations with Dr. Dollfuss and the Lord Mayor, Seltz as well as with other leading political person- alities, Suvich, head of the Italian Foreign Office has announced his intention of arriving in Vienna on Thursday, ostensibly for discussions of
Constitution of Cor-exceptional severity-British Wire- of Trieste. Following this announ
porations Approved
less
56 PEOPLE KILLED
certain commercial questions connected with concessions to Aus- tria of rights in the Italian port cement the Hungarian Minister of Agriculture, Kallal, who reached to discuss Vienna on Monday certain important economic issues Calcutta Jan. 16. Latest official figures are 56 kill-between the two countries declar [Special to the "Hong Kong Dallyed and 407 Injured and four thous-ed he would prolong his stay" so and houses damaged in the Patna as to be at hand when the Austro- Press"- (Copyright.)] '"
neighbourhood Six people were Italian negotiations were taking killed Bhagalpur, while a 130 from place.-Transocean Kuo Min.
in Jamalpur 180 railway huts collapsed and are uninhabitable.
The "Daily Telegraph" consid- siders that the value of the mes- sage lies in the removal of
Rome, Jan. 15.. can policy, but adds that Presid- uncertainty in regard to Ameri- ent Roosevelt is still faced with
During his speech for the ap- the problem of keeping the dol-proval of the budget of the Minis-Reuter. lar down to the level he regards try of Home affairs the under secretary Mr. Guido Buffarini "de- as vital
According to the "Dally's Teleclared that 105 Municipalities have graph's" political "correspondent, been struck off the list of zones a special meeting of the Cabinet infested by malaria, will meet to-day to consider the possible harmful effects of Roose- velt's policy on British trade.
FRANCE" IMPERILLED
ENGLISH WOMAN KILLED
Calcutta, Jan. 16.
FRENCH 'PLANES COMPLETE TOUR
The earthquake fatalities includ-Special to the "Hong Kong Dally
Press" (Copyright.)]
Paris, Jan. 15. The Minister of Communica-er an English woman Mrs. G. W.
The African Air Fleet conalsting. tons. Count Clano, delivered a Moon who died when her living speech to the Senate on the ac- quarters at Jamalpur station, 300
of the discussion of the miles from Calcutta collapsed. She of 28 planes which, in November casion
was the wife of the Works Mana- last went on a tour of 16,000 miles Budget of the Minister of Com-
During his speech ger of the Hallway Workshop at around the French African Colon- les returned safely on Monday to The Financial News thinks that munications.
the Paris airport, Le Bourget; With the depreciation of the dollar may the Minister announced that a Jamalpur.--Reuter.
50 INJURED AT PATNA.
where they were received
by they result fa sterling depreciation great quantity of the railway lines
an enthusiastic ovation the franc. and that will be completely electrified. EX-
Calcutta, Jan. 16. OCCURS Of amining the situation of the ma-
were 33 President of the French Republic, stated that It is now
the Cabinet The further 10 per cent. depre- against
this depreciation
it is scale,
con- terials and of the employees the ciation held in reserve is regard-
& large
Ten were and a vast crowd of spectators carried In cd as a bargaining weapon.
aviators were that President Roose Minister stated that in Italy to- killed and 18 injured in the earth- several members of
50 injured at Patna The. It is believed that depreciationceivable
shocks were triumph to the Paris City Hall where further mild an railways have at least 20.
authorities and rewarded beyond 40 per cent, will precipitate velt's action will bring the frane's day there were only 8 employees quake at Jamalpur.
Examining the situation of the felt this morning. There was not where they were received by the standard which President Roose- more within the bounds of pos-
Minister France into abandoning the gold departure from the gold standard per Kilometer while other Europe- killed and
Marine.
much damage. Thirteen shocks civil velt does not desire, as it will re-sibility.
were altogether recorded last night. with promotions and decorations.- "The Times" says that by max-Mercantile
or Salde declared that the traffic of
-Ruter. sult in the loss of the present ad-
stabilisation, President Roosevelt the ports was greatly augmented vantage which he hopes to main-ing a move in the direction
is doing something to lessen the and that the tonnage of scrapped tain as long as possible.-Reuter.
uncertainty, which prevailed re-ships was much inferior to that
of the of previous years. London, January 16.
garding the imcertainty The reason that the dollar has dollar and which checked the re- not weakened heavily after Presi-vival of confidence.-Reuter, dent Roosevelt's announcement is believed to be due to the fact of
SHORTAGE OF DOLLARS.
dollars in London and Paris and a heavy commercial demand for consequent shortage of dollars. Reuter,
next Thursday at the Legislative sitting. Transocean Kuo Min.
Mussolini presented to the cham- ber the outline of a new law con- cerning the contitution of Cor-. New York. January 16.
theporations The scheme which has All monetary silver in aised as well as gold, according of the chamber will be discussed United States will be national been loudly approved by members Senator Thomas, who stated that and perhaps subalduary silver
would con- some silver dollars
the tinue to circulate but that bulk of silver would be collected and placed with the Treasury to become reserves for the issue of paper currency-Reuter.
BRITISH PRESS COMMENT
London, "January 16. The 60 cent. dollar feature of proposals Roosevelt's President receives special attention in the comments in the British Press."
Washington, January 18. The Financial Times," describ-
The Senate passed a Bill ex- ing the proposal as giving "pro-
1935, increasing mike of greater stability," remarks tending the Hte of the R. FC. that the decision will have a great until February advantage in fixing the maximum its leading power by 850 Million margin risk involved in entering dollars transactions in United States cur-, rency.
Bankers and industrialists will be more inclined to deal freely, but
11
HISHIKARI VISITS CHANGCHUN
Harbin, Jan. 16.7
Harbin, General Hishikari arrived Paying his first official visit to
The Commander-in-Chief against from Changchun yesterday by air, whom an assassination attempt is rumoured to have been plotted; drove to the Japanese military headquarters through streets lined with Japanese and Manchukuo
seers Reuter.
credits. He said, if France aban- doned the gold standard it would enect the United States monetary policies since it would change. gold prices"
Such legislation places the right of title to ownership of gold re- serves in the Government itself, and also makes clear the Govern- ment ownership of any added
GOLD MESSAGE EXPLAINED Becondly, the inherent right of dollar value to the country's gold
Washington. stock resulting from any decrease the Government to issue currency
Explaining his gold message to in the gold content of the dollar, and to be the sole custodian and which may be made in pubille owner of the base or reserve of
precious metals underlying cur-It remains to be seen whether Pre-Journalists, Mr. Roosevelt declared interests..
"If public interests should re-rency. With this goes the pro-sident Roosevelt can reconcile the the objective in his monetary pro- troops. and taronged with sight-
• chasing power of the dollar to a. quire an increased amount of gold rogative of the Government to de-often conflicting influences of cur-gramme was to restore "the pur-
to time the rency prices and wages. in the dollar, the foss would fall termine from time
The "Morning Post" declares level at which debts to the coun- extent and nature of the metallic upon the Government.
that the message clarifies Prest-try were incurred.-Reuter. "g reserve.
TO BORROW $10,000,000,000°- dent Roosevelt's monetary policy,
Washington, January 16. though it will disappoint those who expected immediate stabiliza-
Mr. Morgenthau sald the Gov
The executive order forbids ex tion.
Discussing the effect on British arment still planned to borrow export trade, the newspaper points $10,000,000,000 but explained the port or withdrawal from America out that a 60 cent dollar will be disadvantageous owing to a slight profits from devaluation could be of any currency or silver cofni accentuation of the existing under-employed to meet Government ex-which is legal tender in USA. valuation of the dollar in terms of penses. The Treasury intended to except by license. Foreign world commodity purchases, but if take over gold owned by the change. transactions and credit 67 per ne ounce, the RF.C. bear-out' license for normal commercial President Roosevelt's expectations. At the old price of the 22-transters may be carried out with-
disadvantage
It is Inflationary to a greater are fulfilled; the
nounced farther that he con- should be only temporary-Reuter, in any loss Mr. Morgenthau an- requirements.
CURRENCY STABILISATION?. sidered an agreement between the extent than any inflationists hop- London, Jan. 16. United States, Britain and France ed declared Senator Thomas, The The pronouncement of the would be suficient to bring about New York Sun on the contrary American gold policy has not met International stablisation. The US says the majority of bankers and with unsympathetic reception in cold stock might be distributed economists consider the devsulation London. The full explanation of in other countries to form trade of the dollar too low, Renter.
The title to all gold being in the Government, the total stock would am confident that the nation serve as a permanent fixed metal will realise the definite purpose of amount the Government to maintain credit ilc reserve changing ta only so far as necessary for and provide a sound medium of the settlement of international exchange for serving the needs of balances, or as may be required by the people, President Roosevelt future agreement among nations concluded. Reuter. for re-distribution of the world stock of monetary gold."
PRICE OF NEWLY MINED GOLD Washington, January 16. THE DOLLAR'S VALUES
The Secretary of the United "With the establishment of this permanent policy, the time has States Treasury, Mr. Henry Mor- come for a more certain detergenthau, has announced that be- mination of the gold value of the ginning to-day, the official price. Agent of newly-mined gold per fine ounce doller.
will be U8.834.45 less one-quarter "In consequence of the world uncertainty, the President does of one per cent. for handling not believe it desirable in public charges. interest that the exact value should now be fixed.
This is assumed to be the Trea sury price, and not the Reconstruc
ex-
Transocean Kuo Min,
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