Evening star., 1933-07-02
PARLEY HOPES BRIGHTEN.
BUT ANXIETY PERSISTS
Crisis Is at Height; However, More Prom
ising Atmosphere for Achievement
Is Being Manifest.

Amid these differences, however, there
Is some common ground. This has been
found and defined in communication
sent to President Roosevelt Friday.
There Is agreement as to the deSir-
ability under certain conditions Of the
ultimate return to the gold standard
by those who have left 1t. This al
ready has been expressed In a report of
subcommission Of the conference and
was therefore already available as an
element in q common statement of
policy.
Countries which have left gold were
also in agreement in hoping that those
who were still on the gold standard
should not be forced of 1t.
While stabilization at definite rates
is impracticable until the position as to
monetary policy and a rising of prices
has been classified further. this need
not prevent effective collaboration in
eliminating unnecessary fluctuations by
counteracting the impact on market
rates of temporary movements of short
term capital because Of fright and spec
ulation.
These constitute the essence of the
present proposals. AS I suggested in
my last message, it is regrettable that
proposals of bankers a fortnight ago
did not follow these lines. 1t Is to be
hoped that the attempt to mitigate
speculation until q time Of commit
ment to a specified rate will secure
Americas sympathy and cooperation.
There have been signs Of realization
In America in the last few days Of the
dangers Of violent fluctuations Of the
dollar, which in a single day moved as
much as II points. II the atmosphere
can be temporarily Gained the way is
open to discuss more closely the poll
cies Of different countries regarding the
raising Of prices.
The fundamental cause of the recent
depreciation Of the dollar Is that when
President Roosevelt and Neville Cham
berlain, chancellor of the British ex-
chequer, say in almost the same terms
they want to raise prices, the world be-
lieves Mr.. Roosevelt will do more than
he says and that Mr.. Chamberlain will
do less.
Clearer Understanding.
If Mr.. Roosevelt could make it clear
he is determined not to let imitation ex-
ceed the point which most helps equilib-
rum, and Mr.. Chamberlain could con-
vince the world that he Is determined
to take measures which the declared OBJ
iect of his policy requires, the market
exchange rates of the dollar and the
pound would come closer to their real
economic values.
The way would then be clear for
provisional stabilization, and gradually
conditions Of return to gold at new
PARTIES would be attained
PARTIES would of course be changed
in some and possibly all cases; that is,
there would be ''devaluation." 1t
!, iv,L L,a 70 he
term revaluation. We are all familiar
now with the term relation to indicate
that limited form Of imitation intended
only to correct the fall IN prices which
already has taken place.
Frightened Unnecessarily.
In the same way, II America devalues
when she returns to gold-that Is, re-
turns at lower parity of the dollar
in relation to gold-she will only be
stabilizing a depreciation which has
already come about Revaluation ex-
actly expresses this. The term devalu-
alton often frightens gold countries un-
necessarily by suggesting that 1t i'm
plies new and greater reduction IN the
gold value Of the dollar.
Meantime intense preoccupation with
the exchange situation has paralyzed
the other work Of the conference. Every
one feels that commercial policy and
credit cannot be effectively dealt with
except on the basis Of an agreed and
known currency and monetary policy
If this monetary policy can be estab
hshed, discussion of tariffs will at once
become more practical.
The first trade impediments to be
dealt with will doubtless be those
directly related to currency position.
such as exchange restrictions and new
prohibitions and tariffs imposed in the
last two years to help country's bal
ance of payments.
French Policy Key.
Next comes the question of quotas,
in respect to which the French policy
Is the key.
The crisis is at its height. 1t is q
moment of greatest danger. But it
also is a moment at which this danger
itself evokes all the recuperative forces
available.
The menace Of obvious and immi-
nent disaster is new stimulus to avert
it, and the last few days have seen
such efforts. After the extreme anx-
ieties of the middle of the week the
conference finds itself in a rather bet
ter atmosphere and with rather better
hopes.
(Copyright. 1933)