Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-04-23
ROOSEVELT AND
MACDONALD RESUME
THEIR TALKS TODAY
Continued From First Page.)

tSOLlulu6Q from f1TSC FdRe.)
makes it still more important to hold
the conference at the earliest possible
moment Its difficulties may have
somewhat increased he stated yester-
day, but what are we for but to meet
d1fhcultieS whether they are increased
or not?"
Gold Question Presses.
The question of the gold standard is
one of the principal difncuities the ex-
perts of both countries are likely to
meet. Great Britain is off the yellow
metal and for good, unless some tempt
ing propositions are made to her to
adopt it again. This was evidenced
yesterday in MacDonalds declarations
at the National Press Club After de-
scribing with his unsurpassed elo-
quence the terrible qualms and suffer-
1ngs his country had undergone before
being compelled to take that momentous
decision he stated "* Can you
blame us if we said, Never again, if
we can help 1t shall we go through the
terrible days of that week end"
And this brings up the very difficult
situation which will have to be attacked
today by the President and the prime
minister. And that is the question of
the war debts in general and the June
payments in particular.
The State Department has been re-
peatedly informed by the British gov
eminent that Great Britain cannot
consider even return to a stable cur
rency unless it knows exactly how it
stands on the debt question. AS long
as this matter Is not finally settled and
Britain is confronted with the heavy
payments to the United States, in gold,
they must allow the pound to f1uctuate
and keep their currency low. It is true
that the new imitation bill now before
the Congress provides that an amount
not exceeding 500, 000, 900 may be paid
in silver at a rate amounting to about
halt of the gold value of that sum.
But that Is only a drop in the bucket,
say the debtor nations. A settlement
of the debts is necessary for the eco
nomic situation of the world; and this
pean debtors. On the other hand,
France appears determined to maintain
the gold standard, even If America Is
permanently off.
America abandoning the gold basis
does not mean that the debts are re-
duced, save for the S100,030,000 pay
able in silver; the balance is payable in
gold regardless as to whether America
has her currency backed by gold or not.
Consequently, say the debtor nations,
to continue to pay debts would mean
a continual drain of their gold toward
tn, United States with the further
handicap that that gold cannot return
to Europe on account of the American
gold embargo Hence, MacDonald's de-
sire to tackle the debt question with
the President at the earliest possible
moment.
AS far as the June instalment is con-
cerned, the British feel that unless a
postponement of these payments Is
granted them now they will be placed
u the following position: Either to de-
fault, ard for many reasons, their IN
ternational credit being the foremost,
they cannot afford to do that, or en-
deavor to pay and that would mean
either new taxes on the already over
burdened taxpayer, or scrap the Laus-
anne agreement which would plunge
Europe inevitably into chaos.
This question is grave one, although
Secretary of State Hull rightly described
it as only an aspect of total OF COM
plexities which would all be overcome
If the principal nations OF the world
make UP their minds to attack the
economic question from more gen.
eral and lofty p>int of view, which ne
believes would unclog the economic
machinery and permit the free now OF
trade in the world. Macdonald has
undoubtedly the will to do so. He has
proved it in the past and has proved
:. IN Washington again. But Mac
Donald cannot dispose Of the British
government and must obey certain d.
xecS.ons formulated by his Tory cabinet
In 1929, when the British premier
called on President Hoover he had his
labor majority in Parliament and q
cabinet of his own choice. Today he is
the head Of a cabinet which belongs to
a party with which the British pre-
mier has never been much in sympathy,
q cabinet which dictates and is moi
dictated to by its head.