BANKING: Fool's Gold

Despite repeated statements by Secretary of the Treasury John W. Snyder that the U.S. would not raise the official price of gold (TIME, Nov. 14), speculators apparently followed the dictum attributed to Bismarck: "Never believe anything until it has been officially denied." Over the past months, the speculators went right on bidding up the price of gold stocks. Last week, President Truman pricked the speculators' golden bubble. As long as he was President, he said, the price of gold would not be raised. Next day, speculators unloaded 13,900 shares of Homestake Mining, which dropped 3½ points.

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