Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-22
LAVAL'S VISIT MAY PUT END
TO SHORT SELLING OF DOLLAR
Paris Spectators Have Embarrassed Gov
eminent Officials by Their Recent Attack
on American Currency.

that in every country today the philos-
ophy of the individual is one Of self
preservation. There is no sentiment
in his market or commercial operations.
II the Frenchman thought dollars were
sounder than francs he would change
his francs into dollars, though 1t is
doubtful II the American would ever
change his dollars into francs. The
Englishman has been changing his
pound sterling into dollars. while be-
lieving that sterling IS still bound to
be the outstanding monetary unit Of
the world. So, when Frenchmen, at
the height Of the campaign against
dollars 10 days ago, took their Amer
lean currency to their domestic banks
NJ demanded the equivalent in
French money, they had In mind their
consideration entered their heads.
France still has about 100000, 900
remaining in the United States in
credits. At one time the total was said
to have been about $4,000, 900, 000.
Whether or not these remain here will
depend entirely on the business prin-
ciple Of making capital earn as much
as 1t can; in other words, will the
American banks holding these deposits
to retain the deposits? If not, the
French are likely to take them home
and look for a more satisfactory in
vestment. If the rate is satisfactory
they are quite willing to leave them
here, believing they are as safe in this
country as in France and preferring
always to have good-sized credit at
their disposal outside Of Paris.
U. S. Money Policy.
This situation is a phase of the dis
cuSsion that is every day becoming
more active and which is expressed in
a query: Is the United States adopt
ing money policy which eventually
must result in imitation? Bankers
claim that imitation is not a necessary
effect from the operations of the Ma
are inclined to differ with them. They
see in the operations of the Federal
Reserve Board a distinct tendency to-
ward an inf1ationary movement, either
conscious or as an accident OF the
emergency measures.
1t is pointed out that the volume of
Federal Reserve notes is expanding
rapidly. In the past year it has in
creased $1,372, 100000. The total of
eral Reserve, as of the last report on
october IA. was S2,104. 100000. an in
crease of over 100 per cent in IL
months Taking these figures as his
text, the veteran editor of the Com
mercial g. Financial Chronicle, rec
ognized authority in banking circles,
in this weeks issue says:
I'm the last analysis it cannot be
denied that in its main characteristics
the state of things now prevailing in
the United States bears a remarkably
close resemblance to the state Of things
prevailing before the unfortunate up
heaval in Germany and the still more
unfortunate upheaval that came later
in Great Britain. We have first
large outflow Of gold; secondly conSid-
cradle credit imitation, and thirdly, we
have the need of balancing the
budget
The editor Of the Chronicle has been
q persistent and consistent critic of
the Federal Reserve System from the
early days of its operation, but his
judgment of its policies is entitled to
much respect.
tCopyright, 1917