Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-21
]. P. MORGAN SEES
BRITISH RECOVERY
Declares Action on Gold
Hopeful and Not Discour-
aging Event."
BY DE WITT MACKENZIE.

II.
Chief Of London Bureau, Associated Press
(copyrisht. 1881. by the Associated press1
LONDON, September 2l.-J. P. Nor
gan today expressed to the Associated
Press optimism regarding the situation
arising from Great Britain's sensational
suspension Of the gold standard. He
said it was hopeful and not dis
couraging event."
Mr.. Morgan made this statement In
reply to question from a corresponds
ent who sought him in his private ONCE,
not far from the Bank Of England.
This step seems to me to be the sec
ond necessary stage in the work CT the
rational government, the first being the
balancing OF the budget" Mr.. Morgan
said.
Restoration Of Trade Seen,
The completion of the governments
work will be the restoration Of trade In
this country"
This being the case" Mr.. Morgan
continued, st seems to me a hopeful
and not a discouraging event and one
which brings the great work of the
Government much nearer to accom-
plishment."
In receiving the Associated Press cor
respondent, Mr.. Morgan broke an all
most ironclad ruiz never to grant news
paper interviews. His father observed
the same rule before him.
But once the distinguished banker
decided to talk, no one could have been
more cordial. He discussed the situa-
ton Tor almost an hour. and while 1t
IS not permitted to quote him any fur
ther than above, it may be said that in
the entire discussion he did not ex-
press any pessimism.
And he added word Of fine tribute
Tor the character and stability Of the
English people.
Other Financiers Hopeful,
Several other f1nanciers expressed
similar opinions. without exception.
they held the view that the sovefn-
mentS latest step is in the right d.
rection and that Britain viii weather
her crisis.
There was no disposition to try to
eyade the fact that the situation is
very serious.
Indeed, one Of the most hopeful signs
these financial experts find Is that
England does recognize the situation
from that standpoint
John Bull this morning climbed beck
into the trenches end there was a de-
termined grin on his face
Everywhere one encountered a spirit
Of optimism.
Held Logical Conclusion.
Other, financial commentators re-
quested% that their names be withheld,
but here are some of the points made
by several American bankers, all of
whom are widely known:
Suspension of the golf standard by
Great Britain not only was not unex-
pected, but was logical and foregone
conclusion.
From the standpoint of the financial
expert, 1t vas the correct move
The only criticism offered is that it
should have been done before.
Far from being disconcerting, this
move has cleared the atmosphere.
As one banker put 1t: we had on
our hands patient who had to un-
dergo an operation to save his life. We
we're anxious, but now the operation is
over and We are feeling relieved"
What has happened is that England,
as a banker, has stopped a run on her
institution. People all over the world
were cashing their British securities
mere IN London. individuals did not
realize the magnitude of the operations
and did not recognize that they really
were participating in the run, financial
commentators say.
Will Act as Tariff Wall.
But it was apparent to London and
the government stepped in and stopped
csshing securities in gold while there
still were gold reserves enough to meet
the governments needs.
Britain was not going to let herself
get caught as Germany did just after
the war, when the mark crumbled to
practically nothing because Germany's
reserves had been wiped out, financial
experts declare.
They see no chance of anything of
this sort happening in England The
fall in the dollar value of the pound
has been anticipated and discounted by
bankers. 1t is said.
One effect of the suspension of the
gold standard will be to cut down i'm
ports. In other words, it will act as
a tariff wall. This also has been dis
counted, since it has been. assumed
England must impose tariffs anyway.