| Show I Gold Gold old Takes Stage A Away way From Stocks In In Raid on Dollar Loosening of Yellow Metal Embargo Seen as Possible Possible Possible Pos Pos- sible Move NEWYORK April 14 H Gold CUP UP Gold stole the financial stage from securities ties and commodities today as the financial communities of the world watched closely closey though it was as a n market holiday to S see sec how far tar the Roosevelt administration would go goto goto goto to save the dollar doliar from depreciation The treasury fi financial ancial observers must d do on ons of two thines Ei Either r li it must rel relax X mai materially IlS its embargo on gold shipments imposed in the bank crisis to protect this nations nations nation's nations nation's na tion's supply of the precious metal or It must allow the dollar to depre dere date I Foreign raids and domestic gave th the dollar its Its' roughest treatment in many years yesterday here and abroad as foreign curron des leaped upward in terms o of or the American monetary unit As a result of ci the sensational gains of foreign money gold was above the export point when the market closed dosed yes That is to say such premiums were available on foreign gold currencies cur in terms of the dollar that an American bank could make a big profit by selling foreign currencies short and then shipping metallic gold abroad to meet the commitments GOLD FLOW STOPPED Under normal conditions of free flow How of gold this would be done and the dollar would snap back to par But since the embargo was imposed no gold has left this co country unless it was smuggled except to meet commitments com made before the banking holiday Yesterdays Yesterday's run on the dollar leem seemed to have started chiefly because because be be- cause cause- of growing reports report abroad and at home that plans were afoot to revalue re re revalue revalue value gold as as a means of inflation inflation- that is to change the amount of gold used j per er dollar in gold coin As the dollar dropped and other currencies rose rase observers waited wafted in vain for some ome sign from the treasury or the Federal Reserve bank that action would be taken to disprove the rumors When no sign came inflation tion rumors grew and arid the securities and aid commodities markets started l leaping upward in response Not until after alter the New York stock exchange closed was it made known at the Federal Reserve bank here that the treasury had licensed the thc first free shipment of gold since the embargo A New York bank unIdentified unidentified un identified was authorized to send gold to Holland amount was not made knade known APPLIES FOR FOE LICENSE I This indication that thai the embargo might be over led another lage bank it t was reported reliably to apply for tor fora tora a license to export gold to France If this is granted a flood of applications applications will follow Then the treasury must decide dedde where to impose its limit unless it desires to lift the embargo entirely which is considered most unlikely That would simply Limply make it Jt possible for hoarders boarders in this country country coun try who have been forced to disgorge their gold stocks to buy gold back again In Europe and keep it there Even a a. moderate release of gold might be enough to bring the dollar back more nearly to its normal level since it would show the foreign na nations nations that the administration stood ready to back the dollar against raids The Good Friday exchange holiday will not necessarily interfere with gold activity since banks will be open Much foreign exchange tradIng trad- trad lag Ing is unofficial and outside of regular regular regu regu- lar market hours FOREIGN QUOTATIONS At the peak of yesterdays yesterday's prices English sterling was up 6 8 1 cents cents' to 37 2 1 l francs were up 4 i 4 1 to the highest level since 1926 and other currencies rose correspondingly There was wu some reaction before the close but last quotations for tor curren cies ies of the four important nations re reo re- re on the gold standard were French francs 8 5 58 up 2 8 27 8 7 Hoiland Hol Hoi land guilders cents up 8 12 2 points Belgian 1404 cents up upI 7 2 1 points and Swiss francs 1950 I cents up 13 points The gold export ex cx port points that is is the prices at which export is profitable are French franc 4 3 cents guilder belga 1401 Swiss franc 1949 If U the dollar is allowed to sink farther farther farther far far- ther down in unofficial trading during dur duro ing today's market holiday the securities securities se sc- se- se and commodities markets will be in for lively se sessions i ns Saturday Saturday Satur Satur- da day as prices are adjusted to meet the depreciation of oZ the dollar |
