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BILLION
Still in Hands of
Hoarders Wanted
by Government
Gold hoarders have about $1,000,-
000,000 in metal and gold certifi-
cates. President Roosevelt wants
this turned back to the banks by
May 1 or the government will take
action.
His executive order which placed
the national gold supply under a
license system to carry out legi-
timate trade needs, directs those
holding more than $100 in gold or
gold certificates to give it up
promptly.
If they don’t, they face a penal-
ty of a $10,000 fine or ten years in
prison or both.
At the Treasury it was said that
since the national bank holiday
was proclaimed there had been no
demand for gold, but the amount
still tucked away by hoarders was
unduly large. On Mr. Roosevelt’s
behalf it was said that the chief
purpose of his action was to re-
store to the nation’s reserves all
the gold that remains hidden.
The president’s order authorizes
the secretary of the treasury to
issue licenses of obtaining gold for
industrial requirements, exporta-
tion for trade and other legitimate
needs. The unlicensed gold must
come in before May 1.
ment last night: “The president’s
order requiring the turning in of
hoarded gold, and at the same time
providing that gold shall be avail-
able for all proper purposes, is an
expected step in the process of
regularizing our monetary posi-
tion and furnishing adequate bank-
ing and currency facilities for all
customary needs.”
“Gold held in private hoards,”
he said, “serves no useful purpose
under present circumstances.
When added to the stock of the
Federal Reserve Bank it serves as
a basis for currency and credit.”
The Federal Reserve Board last
Friday announced the country’s
monetary gold stock on March 29
amounted to $4,272,000,000–a de-
crease of $116,000,000 as compared
to the amount a year ago. But in
the three weeks since the National
Bank holiday the stock of gold had
increased $28,000,000.
The board also announced the
Federal Reserve Banks on March
29 held gold reserves of $3,441,996,-
000, an increase of approximately
$70,000,000 in the week and of
$633,000,000 since March 8. In the
first week of March the banks lost
$209,000,000 in gold.