Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-28
'BR|TON SEES GOLD
STANDARD ON TRIAL
Experts Take Various Views
on Present World Credit
Situation.
BY JOHN F. SINCLAIR.
al ispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March % After
the stock markets sinking spell
on Tuesday and the surprising rebound
during the last hour, it was expected In
most quarters that another "watchfui
waiting day would take place in the
stock market yesterday; but 1t proved
another day Of surprises.
Money went to Is per cent and ruled
at that rate practically the entire day
Such a rate two weeks ago would have
tumbled stocks in mad scramble, but
it had no effect yesterday. Even with
an announcement that one bank mad
agreed to loan 100000 at is per cent,
and the same amount at Is, II, ID and
10. 1t caused no great furry In the mar
ket. Stocks generally moved UP. Some
short covering took place and some
rather strong pools were active, espe-
cially in such leaders as the Anaconda
and Radio.
Tunney's comeback in Chicago. after
his long vacation on the floor in the
seventh round. was no more surprising
than the comeback of the market after
the sinking spell Tuesday.
Old-Timers Confused.
Old observers are confused. No one
has the heart to predict or propnesy
the markets moods.
II parker Willis, in the New York
Journal of Commerce, discussing money
rate anomalies, continues his crltlclsm
of national banking policy. declaring
that 1.-The situation gives cause Tor serl.
Gus thought to those interested IN souno
banking development"
"Todav we have an acceptance rate
which is considerably higher than our
discount rate, a local rate which Is, gen.
eraIlv speaking, higher than the rate
at the interior banks. an investment
rate which is much higher than tnat
which exists in such countries as Japan
and italy (for the best concerns), ana
a call rate which is the highest In the
world and, of course, is far higher IMAM
anv other rate in this market says the
Journal of Commerce.
And then this: Our. present rate
confusion grows out of the pegging OF
the fundamental rate Of our central
bank to that of q foreign institution:
Nevertheless, no nation, particularly
the United States, can expect to expand
its trade in the world unless 1t is Wiling
to cooperate with other nations OF the
world, not only in industry but in bank
ing.
lands most important financial autnor-
tiles, hopes that America will not IN,
crease Europe's difficulties by upward
twists of the monetary screw
Sees Gold Standard Test.
IAN Impoverished Old World, try
ing painfully to struggle onto its feet
again after being tumbled upside down
by war and band governments.
hopse America will keep within the
realm of pure banking-by maintaining
adequate resources and maintaining
He does not wish the bankers to
array themselves In SUPPLIES and
chasubles and preach to the public
about the use that Is to be made OF
credit. AS long as producers and dis
tributors of goods that are needed are
amply supplied with credit bankers
should not trouble themselves about the
extent of the speculative activities OF
the rest Of us, Withers declares.
Then this statement: eff some spec
ulators are paying too high prices for
securities In Wal Street. they vii burn
their fingers, but their loss will be the
gain Of those who got out. and In the
meantime enterprise Is stimulated by
the ease with which stocks can be
marketed"
Mr.. Withers believes that the gold
standard Is on trial in this struggle. II
It Is dickered with by those who know
nothing about 1t chaos is bound to
ensue; but II the gold standard Is
worked nationally and sensibly by those
who influence national policy, all will
be well.
fCopyriRht, 1929, by North American News
paper Alliance)