d situation, as you so well. has brought renewed hoarding out gold. The purchasing power of gold over primary products, as reflected in the Journal of Commercial index of 30 basic commodities based on 1926 purchasing power as 100, has risen from 175 last March to 196 on October 5-
This means that the purchasing power of gold, always unpredictable, has been driven up by action of world forces beyond this nation's control. As you recognized the facts and acted upon them in 1933, so must you in our judgment, act again to-day, when the purchasing value of gold in the dollar rises, as it ha: risen in the past six months and i still rising, the price level for all internationally traded commodities, in both domestic and foreign markets, falls in almost mathematically exact proportion.
Great Britain has never returned the pound sterling to a fixed relationship with gold since 1931. You had imilar freedom of action until the Gold Reserve Act of 1934 restricted you to fixing a definite gold content of the dollar, with certain limits. Out under that act you still have the power to reduce the gold content of the dollar to 50 per cent of its former parity—that is, to raise the dollar price of gold from $35 to $41.24 an ounce. By doing this you can just about offset the downward movement of prices since March—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.