Evening star., 1933-07-02
ROOSEVELT BARS
MONETARY TRUCE
Plan Urged by Gold Bloc at
London Is Rejected by
President.
Continued From First Page.)

he promised a statement celebrating
the American monetary policy.
In view of the rejection of the pro-
posed scheme of adjustment, attention
was focused particularly on the last
two paragraphs Of the declaration, pro-
viding for agreement by governments
of gold to adopt measures to limit ex-
change speculation and to ask their
central banks to work with those of 9TH
er governments in limiting speculation
and "at the proper time" re-establish-
ing an international gold standard.
The President has stated that limita-
ton Of undue fluctuations resulting
from speculation is matter for central
banks to handle. not for governments,
and has indicated that he preferred to
leave the matter to the discretion Of
the Federal Reserve banks.
The fate of the conference was q
question which excited conjecture as
this second stabiliZation proposal to
the President was rejected.
Spokesman at American headquarters
refused to reply when asked whether
this meant rejection Of Prof. Moley's
efforts. as he was said at the Amer
ican embassy last night to have rec
commended approval Of the scheme. The
same source indicated that the Presi-
dents approval was likely, SO the de-
ciSion itself came as surprise.
French quarters received the infor-
nation concerning President Roose-
velt's action as they awaited the return
of Finance Minister Bonnet from Paris
Monday.
Scout Farley Breakdown.
British circles deprecated talk of
an impending breakdown in the confer
ence and declined to comment on the
currency problem pending Hulls ex-
planation of the American monetary
policy Monday.
With the publication of the detailed
text of the declaration some quarters
pointed out that it very strongly ex-
pressed return to the gold standard as
soon as practicable. which might be
unacceptable to the Washington admin
istration in view of its program at the
World Economic Conference of induc-
ing adoption Of the principle that CEN
trail banks optionally were to keep up
to fifth Of the monetary reserve
in silver.
Another likely stumbling block, 1t
also was pointed out. was in the part
of the declaration stating that each
signatory government agrees to ask its
central bank to work together with
other central banks in limiting specu
lation' This view was held inasmuch
as the administration attitude was un-
derstood in American quarters to be
merely permissive toward such control.
rather than that the Government
should direct the Federal Reserve Sys-
tenn to act.
While French conference headquar-
tiers were occupied only by some OF
the experts and the secretariat. COM
ment was bitter after confident expecta-
tions that the declaration would prove
acceptable. Hasty telephone calls were
made to Paris.
The French stand from the first was
that the conference could accomplish
nothing without stabilization Forced
to give ground on that issue, the dele
cation insisted action must be taken
to prevent further impairment Of con-
f1dence in gold currencies
French quarters asserted that since
stabilization had been banned, the chief
effect of the conference had been to
place the position of gold currencies in
an unfavorable light.