The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-06-22
WORLD CONFERENCE
SAVED FROM ROCKS
OF MONEY QUESTION
Sterilization Issue Is Postponed
Until Later Under New
Arrangement
MCDONALD is JUBILANT
British Premier Had Been
Straining to Prevent COL
lapse Of Farley
MCDONALD is JUBILANT

London, June 22-LP-The Ameri-
can delegation to the world economic
conference said In a statement
Thursday that the United States gov
eminent feels that currency stabili-
zation now would be untimely and
possibly would cause a violent price
recession" to the detriment of the
conference.
The statement said that undue
had been placed upon
proposals for temporary sterilization
and asserted this matter was never
an affair Of the delegation itself but
rather Of the treasury and the GEN.
trail banks of the United States,
Great Britain and France.
The American government, the
statement continued. feels that its
efforts to raise prices are the most
important contribution it can make"
simultaneously with the publica-
ton Of the American statement it
was authoritatively said the confer
ence had been saved from laundering
on the rocks of sterilization as the
result of an agreement by American
and foreign representatives to post
pone discussion Of the sterilization
question until later.
Prime Minister Ramsay MacDon-
aid, president of the conference, who
has been working night and day to
save the parley from collapse, was
jubilant when the news was rushed
to him.
The Franco-American agreement
was reached at q meeting attended
by James NJ. Cox, American delegate:
James p. Warburg, American techni-
cal expert: and Finance Minister
George Bonnet Of France.
Lays Cards On Table
The stroke Of master diplomacy in
effecting the Franco American rap.
Fprochement was described as having
been accomplished when Cox cast
aside all traditional diplomatic tactics
and laid his cards on the table re.
garding the American position.
The French, who were rseverelNi
burned in the postwar initiation, are,
said to have been completely lackingi
In comprehension Of the American,
internal program and its definite OBJ.
jectives.
They were fearful that the United
States was on the road to wild infla-
ton which might have worldwide eff
fects but Cox and Warburg put them
right on this matter.
That the French had been willing
to quit the conference over the etabi-
lization issue was authoritatively con-
firmed. With the parley apparently
safely through this major crisis. both
the Americans and the British ex-
pressed highest hopes Of real accom-
plishment.
The French and other gold bloc
nations welcomed the declaration as
the first clear-cut official statement
by the United States of its position
at the world economic conference.
THE lines now are clearly drawn"
spokesman for the French delega-
ton said, "and we know where we
are going"
An immediate breakdown OF the
conference was apparently avoided
by the American move, European
delegations indicated, despite the fact
that every gold bloc country, espe-
cially the smaller ones whose gold
positions were weakening, served no.
tice in lobbies that it was impossible
to carry on serious economic discus
sions until measuring rod is pro-
vided by stable currencies.
They will continue to insist on sta
bilization at the earliest possible
time, it was reported.
Orders From Washington
The issuance of the American stab
lllzation statement followed receipt
OF fresh instructions Wednesday from
washington and repeated meetings
Wednesday night and Thursday in
which the delegation considered the
wording OF the declaration.
The announcement was interpreted
here as meaning definitely that the
United States has chosen for the pres
ent to continue the avowed policy Of
letting the dollar find its own level"
The definite statement against
sterilization at this time followed
presentation by Secretary of State
Cordell Hull Of resolution declaring
that tariff and quota determinations
and excuses were against the COM
mon interests and should be reduc-
ed as quickly as possible.
Introduction Of Secretary Of State
Cordell Hull Of resolution calling for
the removal Of trade barriers was q
startling development of Thursday. It
made no mention of sterilization.
The Hull resolution was introduced
IN q subcommittee of the economic
commission this morning.
It called for gradual reduction and
removal OF tariff barriers.
The method contemplated in the
resolution is by bilateral or multi
lateral agreements.
The proposal emphasized care
should be taken to guard against dis
criminatorys features in such agree
mentS.
It was specifically stated the resolu-
ton was submitted in accordance with
instructions from the United States
government. It declared with a pol
icy Of extreme economic nationalism
and the raising Of additional trade
barriers are against the common in.
terest.
The removal Of embargoes, import
quotas and other restrict,osn as COM
pletely and as soon as possible was