1934-01-16 — Page 11

THE HONGKONG TELEGRAPH. TUESDAY, JANUARY 16, 1934.

PRESIDENT ROOSEVELT DECLARES FOR SIXTY-CENT

POUND & DOLLAR FALL IN PARIS

OPINION ON U.S. DEVELOPMENTS

RESTRICTION ON “ROOSEVELT-

London, Jan. 16.

The reason that the American dollar did not weaken heavily after President Roosevelt's mea- sage to Congress is believed to

be due to the fact that there was

Early Stabilisation

With Other Currencies Envisaged

CLAIMS TITLE TO ALL GOLD

PLANS REVEALED IN

MESSAGE TO CONGRESS

beavy commercial demand for CREATION OF LARGE

dollars both in London and Paris, in consequence of a shortage of dollars.

There has, as yet, been very little Feaction in London to Roosevelt's speech owing to the news arriving after business hours.

It is generally felt, however, that a sixty per cent, dollar re- valuation (the highest President Roosevelt will consider) though Imposing a considerable strain on both France and England will be bearable temporarily, pending a Anal International agreement for which President Roosevelt is be lieved to be heading.

BARGAINING WEAPON, The further ten per cent, de- preciation hold in reserve is re- garded as a bargaining weapon.

It is believed that depreciation beyond the forty per cent. margin would precipitate the abandon- ment of the gold standard by France, which President Roosevelt does not desire as it would result in the loss of his present advant- age which he hopes to maintain as long as possible.

FRENCH REACTION. News from Paris shows that both the pound and the dollar fell in anticipation of President Roose- velt's message the details of which did not reach. Paris until the Bourse had closed for the day.

The Bourse scema somewhat

nervous..

There are no fears in regard to the stability of the frane, but the French are very denirous that the pound should not drop parri pasan, with the dollar.

The general feeling in Paris, however, is that it is unlikely that the money market will be much affected by the Presidential an- nouncement-Router.

FALSE PRETENCE

-CASES

$40 “SQUEÉZE" ON COOLIE

Chan On,

a Wanchai coolfa, by

false pretences.

EXCHANGE FUND

Washington, Jan. 15.

Sixty per cent. dévaluation of the American dollar as the upper limit, Government title to and ownership of all monetary gold in the United States, and the creation of an Exchange Equalisation Fund of $2,000,000,000 were the principal proposals in President Roosevelt's eagerly-awaited Message to Congress.

On silver, he spoke hopefully but indicated that he had no further contribution to make towards rehabilitation at present.

established an Exchango Equalisa tion Fund of $2,000,000,000, for the purchase and the sale of gold, or foreign exchange, and of Gov- ernment securities, as the regula tion of currency, the maintenance of credit and the general- welfare of the United States may requiro..

SILVER'S PLACE, ›

Tho President foreshadows amendments to existing legiala-1 tion relating to dealings in gold and other monetary mattera and adds that the other precious metal, silver, has been used from timo immemorial as a metallic basis of currency, also na actual currency itself. It is used as such by probably half the population of the world. It constitutes the most important part of our own mone- tary structure.

Silver 13, in fact, such a crucial' factor in much of the international trade of the world that it cannot be neglected.

LONDON' AGREEMENT. President Roosevelt then recalls

1933. providing for the colnago of

his proclamation of December 21, newly-m and allver and increasing America's

reserves of sliver bullion, "thereby putting un among

silver agreement.

Mrs. James Roosevelt, mother of the President, leading a Grand March at a charity ball, accompanied by General Dennis Nolan.

1933 CUSTOMS REVENUE

SUM OF $339,522,000 COLLECTED.

DOLLAR

ON LAN STREET PARKING

QUERIES IN POLICE COURT

R. Bigazzi, driver of private car No. 642, was summoned before Mr. Hamilton, at the Contral The Chinese Maritime Customs having driven in Wyndham Street, Magistracy this morning, for revenue for 1938, according to which was a prohibited road, and official figures published by the was fined $10. ....

Ministry of Finance, amounted to $339,622,000. In round figures.

Mr. T. H. King, Deputy Inspec="

The revenue derived from import for General of Police, Bald com- duty amounted to $250,610,000, plainant passed him when he was export duty $23,240,000, Interport walking down Wyndham Stroot, Defendant pleaded that he did duty and surtax $18,003,000, ton-i nago, dues $4,402,000, flood relief not see the sign. surtax $14,136,000, and revenue Burtax $14,127,000,

Mr. Hamilton remarked that he objected very strongly to fining

After deducting collecting people driving between On Lan charges, the Customs revenue in Street and Wellington. Street.

Mr. King, said defendant came used for fulfilling all foreign

loans and outstanding fmdemnity down from the Dairy Farm.

The drivera of two private obligations secured on receipts, ps

were cautioned, one for well as allotments to the account care of the national loan sinking fund having parked his car in On Lan and the administrativa commis- Street and the other for having alon to cover amortisation and driven in Wellington Street, with- Interest charges on internal con-out permit.

delen-

Holidated debts. The flood relief Mr. Hamilton said that other surtax is used for the payment of care were allowed to park there the interest dud on the wheat and with permits. How were ahcot aside for the service of the necessary? United States $50,000,000 cotton Mr.Jaud wheat loan of 1988.

the first mailons to carry out the will apply to all persona denling flout lonn of 1981, and the balance dants to know that permits wore

This agreement is distinctly a

ten in the right direction.

"We are proceeding to perform our part in that agreement.

After reviewing all the pledges given at the World Economic Con- tinues:

The Message favourably impressed the com-ence, President Roosevelt con- modity markets. There was anticipatory buy- ing, followed by rather heavy selling, offerings being taken on slight reactions, with buying becoming more active on the announcement of a new and higher gold price.

NO RECOMMENDATION. "If all these undertakings are concerned, there will be a marked

carried out by the Governments increase in the use and the valuo

of silver.

"Governments can well employ

In foreign exchange.

The new orders are said to pave the way for dealings by Morgenthau.-Router."

FEATURES OF PLAN

Main Provisions of Bill

Bions: .

Washington, Jan. 15. The Monetary Bill embodying President Roosevelt's re-commenda tone to Congress has been in- "I look forward to the greatly introduced in both Houses.. It con- creased use of silver. However, I tains the following major provi- am withholding any recommenda tion to Congress, looking to the further extent of the monetary use of silver because I believe that we should gain more knowledge of the results of the London Agreement by our other monetary measures."

Some radical inflationists express them-silver as a basis of currency. selves as disappointed by President Roosevelt's stand against monetary inflation, while some of the more speculative silver interests hoped for a more definite statement.

Senator Carter Glass, Democrat, and Senator Hastings, Republican, stigmatise President Roosevelt's action in calling in all gold and annexing the profits of dollar devaluation to Government, as robbery.

ANNOUNCEMENT

IN DETAIL

President Roosevelt's Message | finenceA

to Congress states:

"In conformity with the pro- gress we are how making in restoring a fairer price level with

GOLD TRANSFERS.

we can

The Message goes on to derinre After evidence was taken, his that the control of eurrency in the Worship convicted the defendant high prerogative of government. of obtaining $25, and imposed a There are many who advocate the fine of $50 or one month's hard use of gold and silver either labour in default. Defendant had separately or with a fixed ratio, us a previous conviction for unlawful the basis of currency. pawning.

A8

SOUND CURRENCY. President Roosevelt stresses two rinciples:

The national currency must be maintained as a sound currency baving a fairly constant pur chasing power and adequate for laily use and the establishment of credit.

The other principle is the in- may be established herent right of the Government to ague currency and to be the sole 1rom time to time.

custodian and owner of the base or reserve of precious metals underlying the currency.

PROFIT AND LOSS.

Such legislation which places

clear

REDISTRIBUTION IN WORLD?

The title to all gold being in

-the Government, the total stock would serve as a permanent and

NEEDS.OF. PEOPLE...

OFFICIAL PRICE

withdrawn

Inspector Nicol aaid the drivers of cars parked there had permite. Loung He, a lorry driver,, was

$10 Only a small surplus remains, fined

for having driven therefore, for tho National at 28 miles an hour in Shaukdwan Government's administrative ex-Road. penses.

To Hoi, a private car driver. Collections at tho various was similarly fined for speeding principal ports, in round figures, in a controlled ares. were:

Tientsin

Kiaochao

Shanghai

Hankow

Canton Amoy Swntow

Kowloon

$ 41,904,000

22,589,000 20,417,009, 176,197,000 10,986,000 6,111,000. 7,977,000 8.801,000

GOVERNOR-GENERAL

(Continued from Page 1.)

1. The title to all Federal Re- serve gold will pass to the United OF INDO-CHINA KILLED States Government, and the Federal Reserve system will be given credits in equivalent amounts in dollars.

2. All gold to be from circulation, gold coinage abandoned, and no currency to be in November 1898, when 21 years redeemed in gold except gold certi- of age.

destined to spend ficates owned by the Federal Re- serve Banks in such amounts as the over thirty years of his life in Secretary of the Treasury decides connexion with that Colony, Pro- necessary to maintain equal pur-moted to be assistant administra chasing power for every kind of

currency.

3. The Secretary of the Trea- aury will be authorised, with the President's approval, to purchase any amount of gold, at home or abroad,

ness.

He

was

was

of

of

Kan Yuct-keung, driver of private car No. 3858, summoned trafic for having disobeyed a signal at the junction of Caine and Arbuthnot Roads, was finest $10.

Inspector Nicol said defendant was driving along Upper Albert Road and proceeding towards Arbuthnot Road. He turned into Caine Road, and passed the signat which was against him, nearly colliding with a private car.

HONGKONG A.D.C. PRODUCTION

REMARKABLE PLAY PROMISED

Theatregoers will welcome the tor of the civil services in January news that the Hongkong Amateur 1901, he was made an administra- Dramatic Club has, in sotive pre-. tor of the Grst class in 1917, rising paration, Anthony Armstrong's to be a Resident in November 1919. famous play. "Ten Minute Alibi". After a period in his probation-which will bo presented at the new ary appointment at Tonkin he was Royal Naval Canteen Theatre on successively chef de cabinet of the the nights of February 17th, 20th, Resident Superieur at Tonkin and 21st, 23rd and 24th at 9.15 p.m.

This remarkablo play was pro- then of the Governor-General 4. The Secretary of the Trea- Indo-China, assistant chef de cabiduced almost a year ago at the sury-could-anticipate the payment the purpose of arriving eventually the right of title-to-ownership-of

not of the Minister for the Colonies | Haymarket Theatre, London,-and- at less variable purchasing power the gold reserves in the Govern-

With this, goes the prerogative of interest on Publle Debt and sell and Resident Superieur in Annam. Its success may be judged by the

or abroad. To for the dollar, I ask Congress for ment itself, also makes certain additional legislation to Government ownership of any add- of Government to determine from gold at home.

trusted with the administration of theatro to crowded houses. Every chase, sell or discount drafts, the Colony during the absences of one must be familiar with the improve the financial and mone-ed dollar value to the country's time to time the extent and nature stabilise exchange, he could pur-On several occasions he was en- fact that it is still playing at that tary situation.

kold stock, resulting from any of the metallic reserve.

"I am confident that the nation cheques, bills of exchange, accept Governors. In 1927, he returned story of how this play was re- ences, or other evidence of indebted to Paris to become director of the jected by various London managers Sheik Abdoola, 45, employed by

"By making it clear that we are decrease in the gold content of

of the government to maintain

Economic Agency for Indo-China. who subsequently vied with each Sher Khan at Capauimun, as head establishing permanent metallic the dollar, which may be made in will realise the definite, purpose

HUGE PROFIT.

other to secure the rights when it to provide a sound watchman in charge of chickens and reserves in the possession of the the public interests.

If public Interests should re-oredit and

APPOINTED GOVERNOR.. gouts, pleaded not guilty bofore Federal Government,

had been acclaimed by the critics. While claiming that his scheme le an argument against printing-

Since then the play has been, Mr. Balfour, In the Central Police organise a currency which will be quire an increase in the amount medium of exchange, serving the Court this morning, when he was sound and adequatë.”

In September 1928, in view of gold in the dollar, the loss needs of the people."-Router. would fall upon the Government,

press money, the President states his long experience and valuable adopted in twenty-three European that he does not believe that the

ho servicea accused of obtaining $40 from

appointed countries.

With Ita highly ingenious plot limited amount of non-interest-Governor-General of the Colony. bearing five and ten dollar note, o succeeded Alexander Varenne, and construction, and its atmos- provided by the Thomas amend

a nominee of the Left, whose ad-phore of suspense deftly sustained ment, would be regarded as green-ministration was the subject of until the final fall of the curtain,

of detective thrillers. backs. He also does not doubt his such violent attacks by the Right the play is right in the front rank ability to stabillar the dollar more that an inquiry commission was The local production fa in the, than once between the 60 and 60 sent out to Indo-Ching. The per cent. limita.

policy of appointing politicians to experienced hands of Mrs. E.

Grossman and En excellent cast The President further belleven governorships, which had been a has been secured. Booking, at the that the United States stablisation feature of the Cartel regime, was Anderson Music Co., will open in due course and an early applica- move will hasten the fixation of abandoned after its fall.

currencies. He

tion for seats is advisable, other nationa

VISIT TO HONGKONG. estimates that the nominal Govern- ment profit in consequence of the During his Governorship, M. reduction in the gold content of the Pasquier's profound knowledge of dollar will be between $3.400,000,- the country was fully utilised by 000 and $4,200,000,000. Reuter

the Colonial Ministry, and towards the end of 1930 he returned to : MARKET EFFECTS.

Paris on A apecial mission, THIEF GETS SIX New York, Jan. 15. travelling by aeroplane and being

WEEKS UBC the All markets were strong to-day, the first passenger to reflecting a favourable reception trunk air-line connecting Paris

Leo Yuk, unemployed, when of the Presidential message by the and Saigon. producers of most commodities. It In January, 1982, M. Pasqufor charged before Mr. Hamilton, at was expected that the R. F. C. gold paid an official visit to Hongkong, the Central Magistracy this mor price was to be advanced to $34.45, when numerous functions were ning, with having stolen a wallet Hongkong, he paid a visit to fountain pen from Lam Kit-ting. from 834.06 where it has been for held in his honour. On leaving containing come documents and

Silver enthusiasts were rather Manila; and later returned to his in Queen's Road West, pleaded that somebody had planted the wallet on him. disnopointed that the. President post In Indo-Chips, talked in generalities regarding this commodity and sent no annel fic silver recommendations to Con- The white metal behaved gross. erratically, but closed the session on the upsido.

Government bonds were widely tought by hanks, Insurance com- wingine, and Indiuifunts in anita af

11

Tho

coln.

TRADE BALANCES. ·

some weeks.

WALLET STOLEN

fixed metallic reserve, changing "Dead Line" To-morrow In amount only so far as neces

Night sary for the settlement of inter national balances, or as may be

Washington, Jan. 15.. "We hope, despite the present required by a future agreement Mr. Morgonthau has announced

among nations for the

redis that beginning to-morrow, the Detective-Sergt. Fowlie, for the world confusion, that events will

tribution of the world's stock of official price of newly-mined gold prosecution, said that yesterday lead to some future form of a

monetary gold.

per fine ounce will be $34.45. less afternoon a detective on patrol in general agreement. In times of Queen's Rond

With the establishment of this one-quarter of one per cent. for, Was attracted by emergency, the practice of trans-

has handling charges. This is as shouts of "Kwan pin" by the com- ferring gold individually or in-permanent polley, the time

only un-como for a more certain deter laumed to be the Treasury price, plainant who was chasing the ternationally is not defendant. He arrested him and necessary, but in every way un-mination of the gold value of the and not the R.F.C. price, but a

dollar.

formal announcement on this polni at the Central Police Station en- desirable.

In consequence of world uncer-le promised later. quiries revealed that the defendant'

tainty, the President does not, how. Mr. Morgenthau has set Wednes. represented himself to be a watch-

ever, believe it to be desirable Inday night as the dead line" for man at the Government Workshop,

The transfer of gold in bulk is the public interest that the exact the delivery to the Treasury of all Hunghom, and had promised to essential only for the payment of value should now be fixed, gold held by individuale, and the complainant work international

not trado balances.

including the Federal Reserve coolle foreman, through Ah Kwan. Therefore, it is prudent to vest In

THE TWO LIMITS..

Banks, whose total holdinga are friend of the complainant. the Government the title to the Three meetings were held at a possession of all monetary gold The President has been au-estimated at over $700,000,000.

The R.F.C. has Increased its cafe at Wanchal and sums of $5 within its boundaries, keeping that thorised by present legislation to $10 and $25 were paid over. defendant said he would need the gold in bullion rather than in fix the lower limit permissible for Gold Fund to $150,000,000, all but the revaluation of the dollar at $25,000,000 of which has already ¡been used. Domestic purchasen money "to buy presents for the

fifty cents.

681.000 ouncOR. totalled European at the workshop" In "We have already called in all Careful study leads me to be have order to get the job. Defendant the gold in the possession of lleve that any revaluation exceed valued at $22,898,000, besides

Sub-Inspector Elston said the was never employed at the Gov-private Individuals and corpora- ing sixty per cent, of the present $97,000,000 in foreign gold.

Mr. Jesso Jonaz, Chairman of

complainant was standing in ernment Workshop.

tions. There remains the large statutory value would not be in the R.F.C., and dollar revaluation

Queen's Road West, when he sud- weight of gold in the possession of the pubile Interest,

donly missed his wallet and ANOTHER CASE.

the Federal Reserve Banks.

Therefore, I recommend Con-would leave the Corporation, with a gold profit, because it ran soll

fountain pen. An acquaintance Charged by Sub-Inspector Logan

of his came up and told him that "Although, under the existing ress to fix the upper limit per- gold oversons. He indicate that before Mr. Hamilton, at the Cen-law, there is authority, by Execu-dollar at sixty per cent.

missible for revaluation of the the Corporation's foreign gold has

the defendant had got them.. Ho tral Magistracy this morning. Live Acts. to take title to all:

heen ear-marked for London and

went up to defendant, and held with having obtained $5 from one supplies of American-owned mone-

Paría. Cheung Kwok-kong by falsely pretary gold, this in a step of such

THREE ORDERS.

The police are anxious to get him till a district watchinan came the impending Treasury financing into touch with the owner of a

ug and searched defendant. The tending ho could get Cheung aimportance that we prefer to ask position as an office coolie in the Congress by specific enactments to thor prepared to bring a greater three Executive orders for Govern- $0.000,000,000 mark.

President Roosevelt has inaued which onested to approach the pair of brown leather gloves, which wallet and pen were found in his Evidenco was given by the com- wore found in possession of a man inside jacket pocket. Treeaury Department, Lai Chai, vest in the United States Govern- degree of stability in foreign ex- unemployed, was sentenced to six ment all supplies of American-change rates, thers should be add-ment regulation of forefen v

Steel and automo1ilé stocks were named Lo Kan, in Taf Yuon Street, hawekt “heavily and "The feeling

The defendant was charged he plainant and the watchman, after months' imprisonment..

owned gold, with provision for the rd to the present power of the change transactions,

hald by some experts that the in- for Mr. Hamilton, at the Central which defendant said that com- "A second charge against defend-payment thereof In gold. corti Secretary of the Treasury, power the leance nolley to individuala að

well as banks. to buy or sell gold at homo OF

dustries Annivine pralucers Magistracy this morning, and ra- plainant's friend must have stolen ant of having obtained 816 from ficates."

abroad and the express power to White House has explained conta ara libaly to be the next mandel for one week. In order the wallot, and, on seeing the Ip Pul by a similar trick of gut-

These gold certificatos will be deal in foreign exchange as such, that the orders are

prun to benefit kemm hallar man that efforts could be made to trace constable, put it into his pocket. ting him employment in the Tram-secured at all times, as now, dollar

Mr. Hamilton convicted, and Aunt buitenes nudistane man wall the owner. From the profits of any "nent the ame as the regulations Isnuot

Defendent said he picked up the sentenced defendant to six weeks way Company was withdrawn.

for dollar, by the gold in the tion of the dollar, the President on March 10, 1938. but fastand be justified.-Par Swan, Culbertson

Imprisonment. Defendant admitted

gloves in O'Brien Road, Treasury, of auch weight and suggests that there should be of applying only to banks, they and Fritz. previous convictions.

soveral

EXCHANGE DEALINGS.

In order that we shall be fur-

extending

aubatanially

4

WHOSE GLOVES?

POLICE SEEKING

LOWNER