Evening star., 1933-01-27
Gold, Tariffs and Debts.

President Hoover's proposal that 1t
may become necessary to increase
import tariff rates in order to prevent
the United States from being flooded
with goods dumped here by countries
with deprecated currencies Is well de-
signed to revive European interest in
the gold standard. Today between
thirty and forty countries throughout
the world are OF gold. The United
States and France remain the only two
important nations which adhere to the
yellow metalo money standard. The
Senate at Washington this week de-
cisively rejected an ancient silver
coinage scheme, which, while not essen
tally designed to displace the gold
dollar. would have made for that "un-
sound money" system upon which this
country long ago turned its back.
Various inhationary projects now be-
fore Congress amount to other indirect
attacks on the gold standard.
There are unconfrmed reports that
one Of the conditions which President
elect Roosevelt may attach to recon-
sideration of the war debts, when the
big European parade starts at Washing
ton In the Spring, Is the re-establish-
ment Of the gold standard "over there"
Such a demand would apply primarily
to Great Britain. Americas interest,
in case 1t were to be submitted, would
rest on the already demonstrated fact
that manufactures and raw products
reaching this market from countries
with deprecated currencies are out
competing domestic wares produced on
the gold-cost basis. American foreign
trade being already at the lowest level
since 1905, 1t is not strange that BIZ
partisan favor IS evoked by the Hill
bill, pending in the House of Repre-
sentatives. It provides that when the
currency Of any nation depreciates by
as much as five per cent, all imports
therefrom shall be subject to customs
tax levy adequate to compensate for
the reduction.
From London comes authoritative
advocacy of return to the gold standard
in Great Britain. Sir Harry Goschen
chairman Of the National Provincial
Bank, told the annual meeting OF its
shareholders yesterday that 1T would
be generally agreed that sooner or later
the pound must be anchored to q solid
foundation" He predicted that sterling
would eventually again be linked to
gold, though he would not venture to
predict when q return to the old moor
ings would be feasible.
While the British financier was
speaking, M. Clement Moret, governor
Of the Bank of France, spoke vigorously
along the same lines. He declared that
establishment of the world monetary
system on a gold basis, together with
progressive abolition Of trade barriers
through concerted measures, is the
chief requisite TO economic recovery.
M. Moret, in the course Of An annual
report to his shareholders, took occasion
to deny that France was implicated in
any raid ON the dollar IN the Autumn
Of 1881, when heavy Withdrawals Of
French gold from the United States
gave rise to considerable anxiety.
The United States, while undoubted-
ly welded to the gold standard, is by
no means hostile to silver for monetary
uses. This is one Of the worlds great
silver producing countries. Because of
that, 1t Is at American insistence that
silver was placed on the asenda Of this
years world economic and monetary
conference. But Americas vital interest
In the silver industry Is not likely ever
to undermine its profound devotion to
sound money as the bedrock Of its
currency policy.