The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-04-21
FRIDAY, APRIL q, 1888.
Mr.. MACDONALD'S VISIT

NIX. MACDONALD'S VISIT
TO-DAY the country welcomed Ramsay
Macdonald No foreign statesman is more
popular here than the British prime minister.
During his last visit that was demonstrated.
This regard is partly for his country, a great
sister nation, but it also is for him personally.
Especially now, with the world depressed,
Americans appreciate the courage which brings
Mr.. Macdonald here to seek with our Presi-
dent way out. 1t is a mission of friendship
and cooperation. In that spirit he was in
Vited, and in that spirit he accepted.
Since he sailed from England the situation
has changed. The President has confirmed
the policy of going of the gold standard and
staying off until the domestic price level is
raised and exchanges stabilized
This American policy has surprised many
OF the prime minister's countrymen and even
angered others. Some of them interpret this
policy as aimed definitely against the interests
of Great Britain.
Some Of them demand retaliation They
. urge kind of currency depreciation war in
which Great Britain would attempt to drive
the dollar at a permanent disadvantage of
dearness in world trade. That would draw
other nations into the folly It would amount
to suicide pact
We can not believe that Mr. Macdonald
will be influenced by such hysteria. Having
taken his own country off the gold standard
for what he considered to be the national
interest he would be the last to deny the
same right to us He would be the first to
appreciate our motives.
1t is true of course that our gold policy
will have not only domestic results, but also
foreign results. Just as Great Britain's policy
touched u.s. SO ours will touch her. But it is
exceedingly doubtful that the American dol
lar ever will fall low enough to give us the
unusual trade advantage which Great Bri-
tain has enjoyed as a nation of deprecated
currency-our position as the chief creditor
nation and the largest holder of gold would
tend to prevent that, even though our govern.
ment desired, as it does not desire a contest
in depreciation.
Our departure from the gold standard
merely can equalize the position of the two
countries, without giving us any unfair ad-
vantage.
Though such restoration of the dollar in
relation to the pound would appear to some
short-sighted Britons as blow to their coun-
try, it would, in fact, operate to the eventfuI
advantage of Great Britain.
Even Great Britain, with all her apparent
temporary profit, has lost much more than
she has gained by world monetary chaos.
Great Britain can profit in the end only
by a restoration of world economic health and
sterilization of foreign exchanges This is
true of all nations in this very interdependent
modern world.
For. that reason the sterilization of eX-
changes was made a primary purpose of the
. world economic conference and of the pre-
paratory negotiations in Washington.
President Roosevelt, by going off the gold
standard and allowing the dollar to find its
own natural level is preparing the way for
later fixing the dollar at a new and just gold
5 level. In other words, he has put the United
States in the same position as Great Britain.
International sterilization can not be
S achieved by the United States remaining on
the gold standard virtually alone-we tried
that and it failed. But international stabiliza-
4 ton can be achieved, now that the two great
est financial powers, Great Britain and the
United States, have the same general system
s of managed currency and the same general
interest in eventually returning to the gold
standard at level which will work. and
work Justly.
SO our friend the prime minister, will find
In Washington not less, but more, opportunity
for international cooperation and service.
Tn that spirit Americans hail the arrival
of Prime Minister Macdonald.