Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-07-12
u. S. Board Vetoes Plan as
Premature, Fearing New
Gold Fight.
kefNN SEEN As KILLING
PtTTMAN SILVER HOPES
European Bloc Described Is Indig-
nant, but Situation Is Held
Tranquil.
BY the Associate Press

BY the Associated Press.
LONDON, July 12-The American
Federal Reserve Board, it was under.
stood in authoritative quarters today
has vetoed participation by the United
States delegation at the World Economic
Conference In discussion OF a reeolu-
ton calling for central bank co-opera-
ton.
This resolution was backed by thu
European gold bloc and has been under
consideration by the Subcommittee on
Permanent Monetary Problems.
Resolution Held premature"
1t was stated that Senator Pittman
OF Nevada told the subcommittee that
the Federal Reserve Board felt that
the resolution was premature"
This development Immediately Gre
ated sensation.
Some members Of the committee as
serted this attitude killed further con-
s1oeration Of Senator Pittman,s tmpor-
tant resolution calling for, among other
tnngs, eventual return to the gold
standard, reduction of the gold cover
10 70 per cent and optional use of sill
yer Tor one-flfth of this cover.
american quarters however, emphati-
cally denied that the Federal Reserve
veto had anything to do with the Pitt
man resolution, the gold section of
Wnlch has already been approved by
the subcommittee.
The Americans maintained that the
Feoeral Reserve authorities were re-
ferring only to Cooperation of central
banks as proposed In another resolution
onered by European State a few days
ago. ''
Gold Bloc Indignant
Another startling development was
that gold bloc quarters expressed in
olgnation and declared that this atti-
tude brought the conference mich
nearer complete standstiIl. One non
gold country's delegate agreed with this
view. ''-'
-, central bank cooperation was one of
three subjects which the bureau. the
steering Committee, decided yesterday
could be usefully discussed without Gre
ating olssension. The bureaus deci-
SION was the climax of battle which
Wageo Tor many days between the gold
countries, which wished to eliminate
vlIIualiy al monetary questions pending
oonar staonlzation. and the American
group. which wanted to Continue dis
ctssion of the full agenda.
Yesterdays decision by the guiding
oooy OF the parley was hailed as in
Surlng harmonious continuation of the
dellberations until the time arrived for
a recess.
1t was understood that the Americans
thought they could go ahead with
treatment OF central bank cooperation.
but James P. Warburg, financial expert
with the delegation, took the precaution
10 send message to the Federal Re-
serve Board to make sure of the DO.
sition.
Why Put Team In Field?
Inc boards unexpected veto was in
terpreted in some American quarters as
an indication that the Federal Reserve
authorities were fearful of discussions
Wnlch might commit the United States
upon the subject Of returning to the
gold standard, or sterilization
american headquarters were in con-
FUSION as the result of the Federal Re-
serves veto and delegates met early
tIl.s afternoon to discuss the latest de-
velopments.
The Americans were authoritatively
stated to be sharply divided in opinion
garding the Federal Reserve move
Some supported the board while others
declared that the conference had been
rendered almost useless.
One delegate demanded, what is the
use OF sending team into the field and
then changing the signals on us?"
Later the American delegates said
tnat when the question of central bank
cooperation arose they made definite
reservation that they would have to get
the Federal Reserves approval before
nnally agreeing to discuss the subject.
Some OF the American and French
Continued on Page Q. Column Al