Evening star., 1933-06-20

United States delegation when techni-
cal questions on stabilization were dis
cussed
At this point Eigo Fukai OF the Japa-
nese delegation asked the Senator to
clarity the clause relating to bank re-
serves.
Warburg in reply said the clause was
inserted after the Washington White
House conversations to broaden the use
of gold. and suggested that technical
problems relating to that matter be sub
mitted to the committee Of central bank
experts.
He added that one reason for the pro-
posal was to lessen speculations in var1-
Gus currencies.
While the Pittman plan was under
discussion by the Monetary Committee,
an American price-raising program re-
ceived strong support in a British reso-
luton placed by Neville Chamberlain,
British chancellor of the exchequer,
before the committee dealing with tenn
porary monetary measures.
This resolution stressed necessity OF
recovery in the level of wholesale prices
sufficient to yield an economic return
to producers of primary commodities
and to restore equilibrium.
It further said that monetary action
was one of the essential points to
achieve this goal and contended that
central banks should announce an in
tention to work together for cheap and
plentiful money.
Welcomes Resolutions.
The Italian delegate welcomed the
American resolution favoring gold and
declared that Italy is prepared to ad-
here on the part regarding the principle
of silver, but reserved comment on the
questions of application"
Viscount Hailsham supported the
chairman's proposal to send Mr.. Pitt:
mans resolution to the subcommittee.
He said he assumed the Senator 1n-'
tended to make 1t clear that, regard
ing return to the gold standard, this
remained a matter for each country to
determine for itself
The British minister continued that
he presumed the Americans were
lor Chamberlain had last week men
toned the condition on which Great
Britain would consent to return to the
gold basis
In general, Viscount Hailsham said,
Great Britain agreed with the American
recommendations.
Senator Pittman thereupon said that
America agreed with Lord Hailsham's
statements and was willing to add
Great Britain's suggestions to the res
olution.
On behalf Of the Americans, he said
he wanted to express appreciation for
the acceptance OF the matter by the
italian delegation and that he had no
objection to M. Parmentier's sugges-
tionS for referring the banking and
silver clauses to subcommittee.
Other Countries Speak.
Portugal declared itself not in favor
of silver for currency coverage, but
backed wholeheartedly sterilization and
the return to gold. without which "the
conference will get nowhere"
CzechoSlovakia agreed with the gold
suggestions. Its representative said
Czechoslovakia had eliminated silver
five years ago, but now was making
use of it and was willing to discuss
its further uses in a meeting of the
subcommittee.
Germany's delegate in a succinct
speech gave complete adherence to
the Pittman resolution, asking that it
be adopted. not only by the Monetary
SOiIliHlSSlOli, puI dlSO Dy JIle tllIuc
conference. This was the fullest ac-
ceptance of the American proposal
thus far expressed.
A representative OF India said his
government was tremendously interested
in the American resolution and advo-
Gated rise in prices before any return
to the gold standard.
Irish and Chinese members followed
with general support. The Mexican
spokesman said his country had gen.
eral sympathy for the American reso-
luton, as Mexico is greatly concerned
about silver. Concerning return to
gold. he asserted that Mexico was ready
to stabilize when other countries do so.
Brazil adhered to the gold clauses and
expressed willingness to discuss silver
and reduction of bank coverage in sub
comittees. Argentina and Greece took
the same attitude
DR.. Kienboeck proposed that Senator
Pittman serve as president of the Silver
Subcommittee, and asked him to invite
representatives of Britain, the Neither
lands, India, China. Japan and Mexico
to serve with him. The chairman's pro-
poSal was adopted
The American monetary policy also
found support from Finance Minister N.
c. Havenga of the Union of South
Africa, who disagreed with the French
viewpoint that monetary steps to raise