Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-04-20
STABILIZED MONEY
| HELD GREAT NEED
Britain Declared Best Equip.
ped to End Chaos in
World Trade.
BY MARK SULLIVAN.

BY MARK SULLIVAN.
The administrators decision to
| cease maintaining gold support for the
dollar in international trade had sew
eral purposes, immediate and remote
One immediate purpose was to raise
prices Of goods in America. Friends Of
| the measure and critics Of it agree that
the step is likely to be followed by q
marking up Of the price level Of prac-
tically all goods In America as well as
some kinds Of securities.
From this point onward, however.
there is acute disagreement about the
wisdom Of the administrators action
and about its probable consequences.
It Is safe to say that In the whole his
| tory Of this long series Of economic
storms Mr.. RoOsevelt's present action
will rank as an important landmark
pointing one way or another.
It will, perhaps. be most useful now
| to omit for the present the disputed
aspects of the Administrations action
and attempt to clarity the whole sub
| ject Of huctuating currencies through
out the world As they are since the
dollar Joined them. This subject, fluc-
| tuatiOns of currencies and the need OF
stabilizing them, will be the funda-
, mental topic of the coming converse
lions between President Roosevelt and
Prime Minister Macdonald Of Great
Britain. 1t will likewise be the princi-
pal subject of the international none
tary and economic conference to be
held In June or later.
Nations Divided.
As respects currency the world unit!
IA@ tntn g
Since then 1t Is divided into four. A
man with q vivid If whimsical gift of
expression has described the divisions
Of the economic world thus:
Cd "Sterlingaris," meaning the I'M
mense area including much more thar
the British Empire, which uses sterling
as currency.
(0 "Argentinia" Latin for silver.
meaning the immense area and peoples
In Asia. Latin America and elsewhere
which use silver.
90 "Goldavia," meaning the coun-
tries which cling to the gold standard.
"Goldavia" has lost much territory re-
Gently and now has not much more
than 100000 people, chiefly France.
Finally. there Is the United States.
which up to yesterday was a part of
Goldavia, but has now seeded to go
1t alone"
Not only do the currencies of thes>
territories differ They have come, dur
ing this depression. to fluctuate vio-
lently. These fluctuations are an ex-
treme barrier to international trade.
They amount to oceans constantly and
violently orm-ridden to such an extent
rs to keep shipping of the water. Bust
ness men In all countries cannot risk
making purchases when they cannot
know what will be the value q week
ahead of the currency Of the country
to which they must make payment. The
result Is international trade has fallen
to less than q third Of normal. With
the United States now adding another to
the floating currencieS. the contraction
Of international trade must become even
greater, unless the whole chaotic condi-
ton Is remedied by the conference be-
ginning this week
For the cure Of this condition. Brit
ain holds the greatest power, because
Britain not only controls the currency
Of "Sterlingaria" directly. but influences
that Of Argentina" indirectly through
her relation to the silver policy of
India.
Sterilization Great Need.
The charge is made that Britain has
been benefitting by the fluctuations Of
sterling end silver as against gold and
as against the United States. The
charge has even been made, in Congress
and elsewhere. that Britain has been
manipulating fluctuations to the disad-
vantage of the United States The
charge may be unjust, one of those
suspicious that infect the world In
time of distress. Because of this
charge there Is some inference that one
Of the administration purposes in
letting the dollar 60 adrift Is to coun-
teract manipulation to our disadvan-
tsge. This inference goes on to say
that President Roosevelt will now be in
stronger position to negotiate sta
bilization all around with Mr.. Mac
Donald and the other nations. One
persuade Britain to unite with us in
going back to the gold standard. Some
friends of silver in Congress think Mr..
Roosevelt will ask Britain and other
nations to unite with us in going on q
bi-metallic basis.
Omitting all that, the facts about
which there need be neither emotion
nor argument are that Britain has
preponderant influence In exchange,
and that Britain and the United States
together with France should be able
to achieve Worldwide Stabll1Zatlon.
Sterilization Is the greatest one need.
Tariffs, reciprocity. intergovernment
debts. practically everything else are
by products Of sterilization. A group Of
Europeans Of the highest possible stand
ing asserted some time ago that sta
bilization Of exchange Is Of more con-
sequence than any other one thing to
the happiness Of every man. woman and
child throughout the world. unless
present tendencies. chiefly instability Of
exchange. can be changed. We question
whether the present structure Of civili-
zation will survive" It IS portentous
problem that will lie on the table be-
tween Mr.. Roosevelt and Mr.. Mac
Donald as they talk in the White House,
and on the table of the international
economic conference when 1t meets.