Evening star., 1933-12-28
WARREN DEFENDS
GOLD BUYING PLAN
Believes Metal Standard
Might Not Survive Failure
to Re-estabIish It.

to Re-estabIish It.
Continued From First Page)
ade or longer, unless unforeseen phenom-
email gold discoveries are made.
The world gold situation did not
arise from a change in the world gold
supply relative to world business, but
resulted from a change in the world
price level in gold. compared with the
world gold supply.
"It might be expressed as too much
price, rather than too little gold
THE only possible corrections are to
reduce the whole price and debt struc-
ture, or reduce the gold content Of the
gold currencies.
Apparently the gold-using world
must fo -ow the latter procedure"
Gold Buying Exclaimed.
The paper also gave q detailed ex-
rlanation Of the theory of regulating
the prices Of commodities through In
creasing or decreasing the buying price
c. gold.
prices in gold in the two countries
England and America) have at all
times been in approximate agreement"
the professors wrote.
by having her currency depreciate
In gold as the commodity value OF
gold rose. England maintained stable
price level.
"By depreciation Of the gold value
Of the dollar in 1893, prices In the
United States rapidly rose to the Eng
lish level. although prices In gold were
nearly stable or showed a slight ten
dency to decline"
Sees Swing to Sales Tax.
Discussing radical changes forced upon
Mabel L. walker. executive secretary
Of the General Welfare Tax League,
said Perhaps the most spectacular
development in State finance has been
the impetuous swing to genera. sales
taxes"
In an address for delivery before
the convention, she said the striking
changes now taking place in the State
governments are "the result Of a num-
Der Of very powerful forces acting upon
the Legislatures"
payers, particularly OF real estate
groups; financial distress Of munich
palities; diminishing State revenues
eminent for recognition by the States
of their responsibility in relieving un-
employment, and the pressure of pub
lie opinion to the same end" Miss
Walker said.
Underlying the entire situation
there seems to be an unmistakable
trend toward greater GENERALIZATION Of
local areas and a greater State control
Of local units = At the same time
the local governments are being drawn
closer to washington.
1T may well be that such local and
State centralization as Is taking place
is an intermediate step that will accel-
crate rather than prevent a closer re-
lationship between Federal and local
governments"
Attacks Senate Attitude.
An attack on the Senate as perennial
destroyer of constructive treaties today
brought a qualified Endorsement from
Senator Ebert D. Thomas Of Utah,
who recommended that Presidents meet
the problem by making a partner" OF
the Senate Foreign Relations Com
mittee.
Pointing out the committees men,
bership of % constitutes a large block
of the Senate, the Democratic lawmaker
dSkeO, CdIl1lOL Tic EAcCutlNc Use IAiAo
as an advisory group?"
Surely the day must pass" he said.
when 1t is easier for the Executive to
get agreement with a foreign power
than with q committee Of his own
Senate"
Senator Thomas spoke after Prof. D.
F. Fleming of Vanderbilt University
had charged the Senate with leading
the world back to the law of the
jungle" in international affairs.
Citing the League Of Nations and
World Court treaties as examples, Prof:
Fleming said that while all kinds OF
treaties have incurred the Senate's dis
pleasure, it has consistently enasculated
only one type, those for the pacinc
settlement of disputes"
He asserted these repeated asSur-
ances" that the United States would
not actively oppose aggression were
noted by Japan and followed by the in
vasion of Manchuria. The cycle Is COM
plete, he said, with every nation that
wishes its neighbor's lands free again
to take them
Prof Fleming saw as the solution
the elimination Of the two-thirdS rule
for approval of treaties and the giving
of voice in such affairs to the House
of Representatives.
Sees II Nations Recovering.
Willard I. Thorp, director of the
Bureau of Domestic and Foreign Com
merce of the Department of Commerce,
said a survey Of 40 nations showed
signs indicating II may be experience
ing recovery"
There are many encouraging signs
now evident, but I suspect already more
emphasis has been placed on the re-
ports than they deserve" said Thorp
THE upward swings are still young.
1t must be remembered there is no way
of determining the permanence Of the
improvement. Furthermore, the ad-
vance often is from very low level
of activity Whether this fraction Of
IT out of 40 calls for cheers or tears is
matter for individual interpretation )"
same meeting he doubted If there would
be any recovery.
" don't think there Is any going back
to the never-never land Of 1925, nor
said the to BE Briton Gays Eve shall nnp probaby
90 20 ahead into something which at
present is very difficult for us to en-
visage."
"There is no confidence" he con-
cluded
Fisher Praises Efforts.
Irving Fisher, professor Of economics
at Yale University, told the statisti.
: clans the N. r. A. until recently, had
| handicapped recovery, but now it is
| helping, both directly by re-employ-
ment and indirectly by leading en-
ployers to borrow at banks and SO help
relate bank deposits"
Commencing the Governments gold
and silver buying policies, he called
relation" the most important factor"
in the return to prosperity.
Lewis H. Haney, economies professor
at New York University, urged that
debts be written down to the ability Of