Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-07-23
Britain Doubts Success
OfPostponed Conference
BY A. G. GARDINER,

LONOON, July 22.-The World Eco
nomic Conference will reach lame and
lmpotent conclusion next Thursday, and
it is question when it will reassemble.
November has been named as the prob
able date, but general feeling prevails
that much must happen in the interval
to make the reassembly either possible
or desirable
The risk Of another fasco must be
avoided at all costs, and 1t Is idle to
expect che countries to consent to re-
turn without much more definite prepa-
ration and a closer agreement in regard
to the tasks in hand
The chief cause Of the failure Of the
first phase of the conference Is the cur
rency problem. which reached a new
stage on Wednesday, when, for the first
time since England went OF the
gold standard, the pound reached
parity with the dollar Is this the end
or only the beginning? The resumption
OF the conference depends upon the
answer, and no assurance Is felt that
the position of the dollar will be much
clearer in November than it Is now.
The possibilities Of the situation are
Infinitely perplexing, and opinions diff
fer as to whether President Roosevelt
has clearly apprehended a policy or
will be capable of controlling the move
that the intention of the President was
to achieve parity Of the dollar and the
pound and, having reached that goal,
be disposed to check further deprecia-
ton Of the dollar. The more common
opinion is that the end is not yet and
that the dollar may 60 to $6-some ex-
pertS even say $7-to the pound. In
that case it is assumed that the Presi-
dent will be driven to sterilization In
order to avoid chaos.
Alternatively, the new American pol
icy may still be in progress in Novem-
ber in which case the conference would
meet with the position of America on
the crucial question of sterilization un-
defined and with the task of attempting
to evolve q system whereby relations not
prohibitive to trade can be established
between America, with q huctuating
dollar, and such parts Of the world as
decided to keep their currencies stable.
Meanwhile q controversy RACES here
around the question Of the policy Of
Great Britain assuming the continued
depreciation Of the dollar. Ohicial and
financial opinion is again entering into
competition with America in currency
depreciation. Whatever the merits Of
the case for economic isolation in re-
gard to America, the weight Of author
ity Is emphatically against adoption Of
the experiment in Great Britain, whose
dependence on international trade is
more absolute than in the case Of any
other country. Sterilization, in this
view, overshadows all considerations.
Hence the tendency Of the Bank Of Eng
lands policy is to link the pound to the
French franc as means of strengthen
continent and Of paving the way for
the ultimate return Of the gold stand
ard.
But while Montagu Norman, governor
Of the Bank Of England, and Neville
Chamberlain, chancellor Of the ex-
chequer, are firm on the necessity Of
stable exchange, considerable wave Of
opinion Is taking the contrary direction
in favor Of following the American lead.
This school puts the raising Of price
levels first In order OF urgency and is
that II internal equilibrium between
currency and commodities Is estab-
lished, the problems Of external ex-
change will solve themselves.
The Labor party is largely converted
to this doctrine, and even some respon-
sible city authorities, like Robert Henry
Brand, give cautious approval. Brand
said this week that no solution Of the
problem Of national and international
Indebtedness Is possible without world
rise Of prices, and he suggested that
q serious obstacle would be placed In
the way Of such rise by the policy Of
tying the British currency to the gold
standard countries.
Whether Montagu Norman can hold
the fort for stable currency depends
on the course Of the dollar. It is
pointed out that already the pounds
advantage In world trade has vanished
and that If the depreciation of the dol
lar continues British exporters will be
fighting losing battle with American
exporters. But the weight Of responsible
opinion y still strongly against COM
petition In currency depreciation and
the doctrine Of economic isolation.
(Copyriaht 1naaN