The Washington times., 1933-04-20
NEW STANDARD
INEVITABLE ;
LONDON VIEW
MacdonaId's Sterling "Gun"
Captured by Roosevelt,
English Admit

LONDON, April 20 d.N.S0.
The British government moved
today to meet the United States
abandonment Of the gold stand
ard as acting Prime Minister
Stanley Baldwin began consulta'
tions with cabinet ministers ana
financial authorities.
It was understood that full
details of President Roosevelt's
announcement clamping an en-
barge on gold exports from the
United States had been COM
municated to Prime Minister
Macdonald, now en- route to
washington to confer with the
President on world problems.
Details of the announcement,
It was said, were sent to Mac
donald by Ambassador Sir Ron
aid Lindsay.
New Standard Seen
Whitehall officials frankly ad.
mitted President Roosevelt had
taken "Macdonald's double-bar'
relied sterling gun" out OF his
hands, leaving him at a mo
mentary disadvantage in debt
negotiations.
They pointed out, however, that
O new standard Of, international
values was an inevitable, pre-
liminary factor to world recovery
and had to come sooner or later"
The feeling grew that although
the situation is serious, it eventu-
ally will facilitate economic agree
ments between Britain and Amer
lea and clarity the atmosphere"
It was felt, also, that tariff
questions had been definitely
pushed aside as far as the Wash
1ngton talks are concerned in
favor of monetary problems.
British Shun Pact
Government officials reiterated
that the present situation with re-
gard to the dollar would not alter
Macdonald's determination to re-
frain from signing on the dotted
X41kC Willie Ill w WdSl1Ik1SGOk1s
The premier, it was said, is GER
tain not to risk any formal agree
ment, but it was indicated he
might consent to discuss the sit
uation along the lines of pos
Sible gentlemanS agreement or
dollar-pound truce" pending con-
vocation of the world economic
conference,
A special meeting of Bank of
England officials was called to
consider the policy of the bank
in view of the American Situa-
ton. Similar meetings were
scheduled by all banks holding
American dollar commitments.
Reports that the British ex-
change equalization fund may be
raised to 500,000,000 pounds
sterling were secuted by informed
bankers and financiers, who de-
clared they were convinced the
Bank of England would hesitate
to risk millions Of pounds in ex-
change operations while Amer
ican. support of the dollar was
lacking.
Qualification Awaited
One authority told International
News Service:
"The exchange equalization
fund cannot hope to indulge In
q gambling pastime If dollar ex-
change values are to be left to
the shifting fancy Of the mo-
ment. The fund probably will
be concentrated in steadying the
pound in terms of French,
Dutch, Belgian, and Swiss cur
rencies until the American Situ-
alton is clarified"
Meantime the entire London
press swung into action in an at
tempt to convince the public
"there is no economic reason for
the United States to abandon
gold, with more than 900, 200, 900
pounds sterling in gold in her
Golfers"
Observers interpreted the press
reaction as an attempt to prevent
panic flight from the dollar by
British holders.
Currency War Seen
Newspapers charged the decision
Of the United States to go off
gold was a political expedient
designed to influence the forth
coming conversations between
President Roosevelt and Prime
Minister Macdonald in Wash
1ngton.
Abandonment of gold by
America, it was said, was an
attempt to force Macdonald to
give an unconditional guarantee
that Great Britain would return
to the gold standard, which she
previously abandoned. One paper
declared:
"ThiS must be resisted with
every argument at Britain's
command"
The London Daily Telegraph
held up the possibility of a cur
rency depreciation contest as a
result Of the American situation.
.SiL1,eT Price Rises