Evening star., 1933-07-03
Conferees Told
tOTable Minor
Problem.
MESSAGE SEEN
RAP AT FRANCE
Frank Note Urges
Balanced Budgets
and Economy.
By the Associated Press.

LONDON, July 3.-Ramsay
Macdonald as president OF the
World Economic Conference de-
cided this evening after a meet
ing of British authorities with
representatives of the European
gold bloc to summan a meeting OF
the bureau tomorrow to determine
the future Of the parley in view
of President Roosevelt's rejection
of currency stabilization.
From the highest British quar-
ters came the statement that
there was no question of the con-
ference having collapsed.
The British are determined that
the assemblage shall finish its
work, but it was admitted that the
conference may have to hurry and
that short cuts may have to be
taken.
Gold Bloc May Bolt.
President Roosevelt's dramatic re-
fusal to have anything to DO with sup
porting the fashioned gold stand
ard resulted in the European gold bloc's
taking definite steps to make good their
threat to desert the parley unless 1t
sailed under flag Of gold.
In gold bloc quarters 1t was stated
that some delegations at least expected
immediate orders from their govern
ments to return home, leaving only
few minor secretaries at London.
Should the entire gold group, con-
sisting of France, Belgium, Holland,
Italy and Switzerland abandon the con-
ference it would virtually be paralyzed.
Reproof to France Seen.
President Roosevelts statement was
Interpreted by experts in high confer
ence quarters, not only as nat notln-
cation that the United States Is not
Interested in restoring the old-fashoned
gold standard, which France and her
continental allies have been trying to
force him to support, but as scarcely
veiled reproof to France.
Experts expressed the opinion the
American Chief Executive had in mind
In Frances unbalanced budget and huge
expenditures for military and naval
purposes, as well as uncollected domes-
tic taxes when he said: When the
world works out concerted policies In
the majority Of nations to produce bal
anced budgets and living within their
means, then we can properly discuss
better distribution of the worlds gold
and silver supply, to act as a reserve
base for National currencies."
In many conference circles the Pres
ident'S statement was taken to mean IN
substance:
I'VE do not give row OF beans about
gold at this juncture. Other nations
may stay on gold or abandon it to suit
themselves, but We are not lending our
support to the maintenance OF old
fashioned European gold standards at
this time"
The first move on behalf Of the gold
countries was made through Sw1tzer-
land.
Walter Stuck, chief Swiss delegate,
asked for and obtained adjournment
until Thursday of an important draft
ing committee of the Economic Com
mission on the ground that no further
work could be accomplished until gold
bloc delegations should receive fresh In
structionS from their governments.
A similar motion was expected IN
other committees this afternoon, and. II
accepted, it would mean that a large
part Of the conference activities would
be suspended.
Well informed persons close to the
representatives of gold countries said
this adjournment Of committees was
merely the entering wedge and antic1-
pated activities would not be resumed.
The Swiss delegation was understood
to be expecting orders tonight or to-
morrow from Berne directing 1t to re-
turn home, leaving only few secre-
taries on the job.
Other members Of the gold group are
contemplating a similar move.
U. S. Delegation Silent.
In the meantime the American dele
CATION remained discreetly silent, feel
ing that the President had said all
that was necessary in his statement
which set the already disturbed confer
ence by the ears.
There was some disposition in Amer1-
can quarters to think that France and
other countries still on the gold stand
ard were bluffing, but this group grimly
asserted that it meant business.
Prime Minister Macdonald, chairman
of the international assemblage, and the
British delegation were working fran
tically to achieve a compromise and
save the life of the parley.
Spokesmen for the gold states moi-
Gated that they would continue ITO play
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