Evening star., 1933-12-25
STABILIZED WORLD
MONEY FORECAST
RooSeveIt'S Hint on Gold
Hailed by Reformers as
Significant.
BY DAVID LAWRENCE


An international agreement on gold
limited at by President Roosevelt, as
sequel to the silver compact, has long
been the dream Of monetary philoso-
pliers.
And curiously enough, 1t does not
mean going back on the old gold stand
ard: So deeply rooted are some Of the
pre1udices against the so-called gold
standard, because the world economic
system broke down under its auspices
that the mere mention of q gold stand
ard once more sends shivers Of nerv-
business up and down the spines Of the
critics. especially those Of The radical
group.
But there has been growing up for
decade school of thinkers who have
felt that a renovated gold standard,
which would really be q means of set
thing balances between nations. could
be and should be set up
The most significant thing in Presi-
dent Roosevelt's expression Of hope
might be attained in gold is the fact
he stresses the international side He
comedies in effect that a standard to
be efectlve must be the result Of an
international agreement.
Commodity Plan Dropped.
The real meaning of Mr.. Roosevelts
hint is that he Is abandoning the COM
modify standard. For he must know
that foreign governments will never
agree to 1t. Commodity indexes may
be helpful In determining how to ex-
pand or contract credit and prevent
infattonary tendencies; indeed. it may
be device like the discount rate which
will help In operating a metallic stand
ard. but Mr.. Roosevelt properly puts
the emphasis on metals-gold and sill
yer. And that Is the beginning Of the
most important step in evolving cur
renCy policy since America suspended
gold payments last Spring.
as essential for a long time Confer
ences OF an International character
have been held often in the last dec
ade and some worthwhile contributions
have been made to the theory of none
tary regulation. But all the plans, with
the exception OF the Irving Fisher and
Prof. Warren proposals. have revolved
around dennite gold content and q
f1xed relation between the monetary
units Of the different nations.
Mr.. Warren himself. in his book does
not exclude bi-metalism or some i'm
PAONSa AOiAl VI IIlC kOlO StduUdIu IIOLl
the plans which he thinks might be
worked out in the next decade. And
there are reasons for believing that
other nations are ready to consider
what may be termed morthodox devices
in helping to make the next gold stand
ard function effectively.
Welcome Leadership.
The conferences held by the League
Of Nations Gold Committees have ex-
plored the ground pretty thoroughly.
and have called for international agree
ment as paramount. Mr.. Roosevelt s
leadership would be welcomed At the
London Economic Conference there
were certain basic principles advocated
which are wholly different from the
gold standard practices of the past.
lnere mas been good deal of earnest
thinking and practical suggestion since
the old gold standard broke down. II
Mr.. Roosevelt will say the word, he can
nave such conference of international
monetary experts that will reform the
use OF gold and will provide for the use
OF silver as means of exchange with
certain countries of the world in a fixed
relationship to gold.
Methods Of control are available to-
DAY, as a result of the psychology OF
the depression that would have been de-
nounced as fanciful few years ago.
Today the world wants a stable stand.
ara, metallic standard, an instrument
or yardstick to measure commercial in
tercourse between nations which will
permit commitments to be made and
bonds and securities to be issued to
long term investors, with a degree Of
certainty which has heretofore existed
Mr.. Roosevelt's hint about a gold
agreement is dozen times more i'm
portant than his mild gesture in favor
OF silver purchases. We are moving on
toward stabilization of world curren-
cies.
tCopy-ight, 1a33)