Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-14
ATTACK ON DOLLAR STUDIED.
U. S. Officials, Puzzled. Believe Effect
Abroad Is Negligible.

Attacks on the American dollar
abroad have received special consider
alton in Washington, especially IN view
of the fact President Hoover soon Is 10
confer with Premier Laval OF France.
During the last week the value OF
the dollar has undergone constant, put
ineffective, attack in France through
the publication of various distorted re-
ports in the French press, including
rumors that the American Government
had resorted to imitation.
Not only have the results been neg
Iigible. but the Government here is
confident they will continue to be
negligible. There is gold in the United
States earmarked for French account.
but if all of it were withdrawn admin
istration officials are assured suf1-
Gent amount would remain to guaran-
tee the stability Of American currency,
Reaffirm U. S. Gold Standard.
High officials are puzzled as to the
reason for this sudden outburst in the
French newspapers. the persistence o.
the attack presents suggestion. at
least of a carefully planned campaign
by French bankers or others against
the value Of the dollar.
Among other things, the Hoover plan
for a revolving fund of So00,OO0'0 900 TO
uberate frozen assets has been de-
scrbad in French publications as
step toward initiation. President
Hoover is known to take an entirely
opposite view
1t has been necessary for American
officials il Europe to reaffirm the in
tenton of the United States to main
tain the gold standard, even with the
fact generally known that the United
States holds more of the worlds gold
supply than any other nation.
The most notable and recent of this
type of reaf1irmation took place this
week when DR.. W. Randolph Burgess.
deputy governor Of the New York Fed
eral Reserve. told the Bank for Inter
national Settlements that this country
would not abandon the gold standard.
In some official quarters there IS a
feeling that the French newspaper
stories may be entirely without signifl-
canoe, even in origin. 1t is realized
that distribution of these stories in
France may simply have happened in
the natural course of events, and have
no meaning whatever.
Such concern as exists here relates
distinctly to the origin and purposes OF
the movement, and not to its possible
effect.
The statement was made yesterday on
high authority that even if France
withdrew all the gold it could from this
country, and pounded dollar credit down
as far as possible. the result would be
too small to take into account.
Laval Visit Held Unaltered.
The feeling in official circles is that
not even the forthcoming discussions
between the President and M. Laval
could be materially influenced.
1t is the announced purpose on both
sides to discuss frankly and sincerely
the problems in which the two nations
have common interest, including the
world finance situation. 1t is the as
sumption here that France herself will
do nothing meantime which might Gre
ate an unfavorable political or economic
atmosphere.
Strong but informal indications have
reached Washington that the French
premier will seek common policy for
the two countries to follow while the
gold standard is being buffeted in the
storm of unsettled world conditions.
This being the case. officials are dis
posed to feel that whatever the cause OF
the present disturbance in the exchange
situation in France, everything possible
will be done by French officials to
quiet it.