Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-06
Sir Charles Adds Believes
Temporary Price Initiation
Might Not Do Harm.
WOULD ADJUST SUPPLY
OF GOLD TO HOLD VALUE
Commodity Rate for Metal Is I'm
portant Factor in Industry,
He Points Out.
BY JOHN F. SINCLAIR.

OL JOuN f. SANOLA1ns
Special Dispatch to The Star.
NEW YORK, April 5.-"The world Of
finance Is out of joint" says Sir Charles
Adds, director of the Bank of England.
In his opinion, many nations are suf-
fering from powerful doses of deflation
and "a moderate dose of temporary in.
f1ation would not do any harm"
What Great Britain is suffering from
Is not low prices, but falling prices" he
insists, because the real fall in prices
during the last five years was unstable
money.
Sir Charles also sees the need of ad.
justing the supply of monetary gold to
the demand, so as to maintain the COM
modify value Of gold, and he hopes that
central banking cooperation on the
scale contemplated in the formation of
the Bank for international Settlements
will perform this function.
In lecturing before the Institute q
Bankers in London, Sir Charles declared
that the bank should demonstrate clear.
ly to the world that it will not function
to make profits, but substitute co-opera-
ton for competition"
-Four O'Clock Coffee"
Brazil has decided to take the bull by
the horns, or, in other words, to make
When a countrys leading source Of
income ceases to be an income some.
thing is wrong. Brazil knows what Is
wrong there, and that is world overpro-
duction of coffee, with its consequent
diminishing prices.
-Four o'clock coffee" the Brazilians
think is the remedy. If IS o'clock tea"
has become an established fact through
out the British empire, then certainly
a o'clock coffee" can also be made q
daily custom in the lives of Americans,
Frenchmen, Germans and Russians. To
bring this about, a concerted effort Is
now being made by the Brazilian.
American Coffee Promotion Commits
sion.
According to available figures, the
average American now drinks about
1919 pounds of coffee a year, or some
375 cups in 365 days We are now
drinking about $4,000 100000 cups of
coffee yearly in this country.
But there Is a limit, even in rich
America.
IT,. Business Cycles.
Walter P. Chrysler is not a believer
in "cycles of depression"
In recent statement he says:
while there are bound to be ductu-
atoms causing peaks and valleys In
business, see no reason for forward
looking people to anticipate definite
periodical cycles of depression. In
other words, it certainly does not fol-
low that depression is inevitable because
Of l, 2 or even 10 years of prosperity"
Referring particularly to his own in
dustry, he does not anticipate any So
called cycles of depression" over the
next five years, believing that approx.
mately 100000 automobiles, or an
~ al
will be produced during this period. IF
so, 1t will really constitute an increase
Of IA per cent from 1880 to 1884 over
the preceding f1ve-year period.
This automobile manufacturer Is
optimistic over the business future. In
Printers Ink he tells why:
THAT only a small percentage of
cur population was affected in the re-
cent stock market recession.
2-That our national wealth was in
now1se impaired, except in paper value
Of securities.
3-That wealth is more widely dis
tributed than ever before in this coun.
try.
4That the banking situation
throughout the country has been mate
| rally strengthened by the withdrawal
of large blocks of money from the cali
market, thus easing bank credits and
making plenty of money available for
| local enterprise and improvements.
5-That savings banks deposits are on
the increase, February showing de-
| cided gain over January, 1880.
Foreign Business.
American corporations are not all
using the same methods in expanding
| their foreign business.
In the automobile field, the Ford
Motor Co. is developing its own fac
| tories in each country, building its per.
| sonnet and business from the ground up.
General Motors in following the poll
icy of buying working interest in vart-
GUS foreign companies.
The du Pont Co. is expanding in Eu-
rope by using methods somewhat SINH
lar to those adopted by General Motors.
So far, however, the du Pont Co. has not
purchased a controlling interest in any
company. Its aim is to cooperate and
assist and not dominate in any enter
prise.
It will be interesting to watch which
type of organization, the Ford or the
General Motor-du Pont, is the more
successful. Perhaps both of them will
be used widely by other American cor
porations in foreign trade expansion.
Latin-American Prospects.
Latin. Americas Importance shows
up once more in the announcement that
English f1nanciers are striving to secure
a financial foothold In Buenos Aires,
and are eager to secure all or part Of
the new $100000,000 loan which the
Argentine government expects to issue.
For months rumors in banking cir
cles persisted that the Argentine gov.
eminent was negotiating loan of that
size with American bankers. It Is now
believed that the note addressed TO
President Irigoyen by the local repre-.
sentatives Of Barring Brothers of Lon
don, asking him to authorize negotia-
tons, will result in the loan being d.
vided between New York and London.
Barring Brothers representatives in.
timated that the Bank Of England was
considerably interested in closer rela-
tions with Argentine banking institu.
lions. ~
The fight for Latin American fnan.
cial supremacy Is on!
(Copyright. 1880. by North American News
paper Alliance.)