Evening star., 1933-07-06
NATION IS BACKING
PRESIDENT ON GOLD
General Approval ofHis Stand
Toward France Found
Here at Capital.
BY MARK SULLIVAN.

the strong and general dlSpoSltlon In
washington is to stand by Mr.. Roose,
velt's note of Monday to the London
Conference and to consider that its
imperativeneSs was justified. The ma
tions on the gold standard, led by
France, had evolved resolution and
asked us to agree to it, which, in some
words of elusive meaning, would have
morally obligated the United States to
supporting France in remaining on the
gold standard at the present gold con-
tent of the franc. The United States
does not wish to be SO committed di-
rectly or by implication. Prevailing
American opinion is that the countries
remaining on the gold standard are
likely to be obliged by circumstances to
depart from it, and that this will be
wholesome because it will tend to
further higher world-level of prices.
The same opinion holds it is unrea-
sonable for the LoPdon Conference to
expect the United States to go back on
the gold basis at a time which is less
than three months after we went oil.
Great Britain went off year and 10
months ago, is still off, and is not pre-
pared to say when she will return, or
even whether she will return at all or
not. When France some years ago went
off the gold standard she remained of
some four years before she felt matters
had sufficiently stabilized to return.
America, having gone off only in April,
is entitled to more time for conditions
to develop to the point where she should
return. One gathers it may be con-
siderable time before the United States
gives thought to getting back on the
gold basis, if indeed We ever go back.
Doubt About Returning.
To readers, the phrase "if we ever go
back (to the gold Standard" will come
as surprise Yet the fact is there Is
doubt about it. The doubt arises out Of
the following words in Mr.. Roosevelt s
note Of Monday to the London Confer.
ence: 1.-The United States seeks the
kind Of dollar which generation hence
will have the same purchasing power
and debt-Laying power as the dollar
value we hope to attain in the near
future"
AS the words were used in Mr.. Roose-
velts note they expressed merely a gen.
eral aspiration The words imply what
some economists call managed dollar"
or commodity, dollar" There is no
sign, however, that any thought has
been given to any particular form of
managed dollar Probably nothing will
be done about it for some time One
would infer that the problem of a dollar
with permanent fixed purchasing
power would be approached, whenever
1t Is approached, not primarily as q
currency problem but rather as a COM
modify problem
We can conceive that the administra-
ton, through the farm relief act, may
hope to maintain q permanent fixed
price for wheat. cotton and other farm
commodities. We can conceive that
through the control of industry act,
similarly permanent fixed prices for
other commodities.
Average Would Determine Value.
The average of many fixed commodity
prices would determine the fixed value
of the dollar. This method would con-
form to suggestions some economists
have made for -fluctuating dollar.
One Of the suggestions is that we should
continue to have a gold dollar, but that
the quantity Of gold contained in it
should be changed from time to time.
When prizes of commodities tend up
ward, the gold in the dollar would be
reduced and vice versa
What Is said here about the future
dollar is indefinite Nevertheless this
is all that can be said. The facts are
indefinite. Probably the question most
in the minds of business men, bankers
and others is just what the American
dollar will be a year from now. No
answer can be given because no au-
thoritative thought has been given to
it. All that is positive is that we shall
remain for an indefinite time as we
now are, with the dollar of the gold
basis and changing in value. It can
be assumed safely that the tendency
of the change will be slightly downward
in value. This Is the same as saying
that the tendency of commodity prices
as a whole will be slightly upward.
Sometime, somewhere, the upward
tendency Of prices will come to an end,
or be brought to an end. There are
signs that the administrators of the
farm relief act consider the price of
wheat to have gone as high as they
deem desirable at this time. There are
similar signs that they regard the
prices of some other farm commodities
as not yet high enough. AS to COM
modities generally, the signs are that
they have not yet reached the height
which the administration regards as a
desirable level.
(Copyrisht, 1933)