The Waterbury Democrat., 1933-04-19

all over the world.
 MT Roosevelt was represented as feeling the decision would help | to clear away the dead wood, along the lines of action during the bank holiday.
 It was explained in sources close | to the White House that the move | was expected to have an almost immediate effect upon both do- l mestic and international commod- ity prices. =. A good many commodities, 1t | was said, are sold in terms of world trade and on q gold basis, cotton for example, being one of them. Friends of the president were hopeful that scotton prices would be one of the first to mount.
 In White House sources it was learned that no new licenses have been issued for the export of gold and that the export of the precious metal Saturday had been verbally approved previously.
 Another thing that the president said to be striving for was a con- trolled price level. His associates said he hoped also to get the world as whole back on the gold standard. In the former connec- ton he was represented as feel ing that while the price level must be raised 1t should be kept from going too high and that is one of the matters now being stud- jed.
 The action taken by the United States is expected to strengthen America's position in urging an international return to the gold standard. In quarters close to the president 1t was made clear that the detachment of the dollar from the gold standard in foreign ex- change is only temporary and the administration hopes for an event. ual world wide return to the gold basis.
 While the United States kept the dollar begged to gold, it was tries off the gold standard, such as Great Britain. to return to gold because their cheap money gave them an advantage in selling goods to the American market. Now, however, if the dollar falls in for eign exchange markets, American exporters will be able to sell goods more cheaply in foreign countries.
 Thus, it was pointed out in in- formed quarters, the other com mercial powers will be more in- terested in returning to an inter- national gold standard in order to neutralize the advantage en- joyed by American exporters.
 American economists preparing for the world economic conference are convinced that two steps must be taken simultaneously to stim- ulate world commerce. They are:
 IA return to the gold stand ard by the leading commercial nations.
 2-The reduction of tariffs.
 These two factors constantly interact upon each other. When a country leaves the gold standard. it's exporters enjoy an advantage .n foreign markets because they can sell their goods fore cheaply. Inn mediately the other countries raise their tariff rates to prevent an influx of goods from the coun- try with depreciated currency.
 Hence, economists believe, it will be futile to lower tariffs without also stabilizing world ex- change, because no country can map out a new tariff policy when it is unable to know what the monetary advantage of foreign traders will be from day-to-day.
 A return of gold by the worlds leading commercial nations, econ- omists believe, will not necessarily mean that their currencies will be restored to the pre-depression level. For instance, there is con- siderable talk in international fi- nancial circles of stabilizing the British pound from $3.50 to $5, whereas, before 1881 it was worth about $4,86.
 Americas departure from gold in international exchange leaves only one important power still on the gold standard - France. Even that country places certain restric- tiorS on the exchange of gold.