Victory in Gold Battle Saved the New Deal
By: Sebastian Edwards
In mid-November 1933, enthusiasm for Franklin Roosevelt's gold-buying program began to wane.
The columnist Walter Lippmann pointed out that relative prices -- or “price disparities,” as he called them -- had moved in the wrong direction. Agricultural prices were now lower, in relation to industrial goods, than in July. Lippmann asserted that this was a severe problem, and that the “country felt it instantly.” He added that the “doubt and discontent of the past three months have reflected" the relative decline in agricultural prices.