Evening star., 1933-06-29
GOLD U[T|MATUM
THREATENS PARLEY
Four Nations Say They Will
Quit Conference Unless
Currencies Are Pegged.
Continued From First Page.)

stated that a communication had been
sent to Mr.. Roosevelt, but the &C
count of this communication published
by London newspapers was denied.
The gold bloc ultimatum provided
q new and grave crisis for the con-
ference. Virtually all the conference ac-
tivities revolved about the stabiliza-
ton issue, which was rendered more
acute by fresh weakness displayed by
the American dollar. 49,,
The American delegation. while still
insisting that the stabilization problem
was outside their province and was an
administrative matter to be dealt with
by washington, were compelled by the
situation to give most serious conSlo-
Grafton to the question.
Routine conference work was dumped
overheard while private stablllzatlon
conferences were being held.
The Americans held a long session
at their hotel headquarters. In addl-
ton to the delegates those present IN
cluded Mr.. Moley Oliver M. W.
Sprague. United States Treasury execu-
tive assistant, and Mr.. Warburg.
U. S. Group Silent.
In the meantime Mr.. Macdonald
and the gold bloc representatives were
holding a session which produced fire.
works. Representatives of France. Bel
GUM, Holland and Switzerland declared
unequivocally at this meeting. 1t was
understood, that they were through un-
less support for stabilization was 1ortn-
coming.
Conferences over the stabilization
crisis continued throughout the day.
It was understood no decision had
been reached as to whether the United
States representatives will consider any
fresh scheme for de facto stabilization
At the same time it was said 1t was
quite possible that new proposal may
be worked out and submitted to Wash
ington in the next few days.
American quarters said one plan
under discussion provided for action by
central banks to prevent speculation
by restricting purchases OF exchange
to business needs This, it was said
is connected with the recent sharp drop
in the dollar, which was aScribed BY
many to speculation.
There was some disposition in Ameri-
can quarters to regard the gold bloc
warnings that the latter might be forced
off the gold standard as a "ScarecroW
to force stabilization.
Sprague, when asked whether he was
as optimistic that there would be Stabil-
iZation as he was several weeks ago, re-
piled that Eve are wandering arounc
in fog"
Confidence Shaken.
The gold standard countries were I'm.
derStood to have told Mr.. Macdonald
that the sole result of the conference
so far had been to shake confidence II
their currenc;es and that it behoovee
the British government to take some
step to end this predicament.
The gold bloc wants Great Britain
TO make a unilateral statement of 1t!
willingness to maintain sterling at th'
present level ard to proffer the aid O.
the Bank Of England in maintaining
the gold standard in those European
countries where it now obtains.
1t was further understood that ,
time limit was set by the bloc in which
it expects Great Britain to take action
or the four countries will cease to par
ticipate in the conference.
The bloc, it was said. told the Brit
ish prime minister of an intention tt
withdraw all ministers and importan
experts. but to leave a few Secretarie!
in London to watch what went on.
France and her gold allies opened
double -barre,ed pressure on Britain
after threatening Prime Minister Mac
Donald one bv one yesterday.
Central bank representatives met will
Bank of England officials at the Banl
of England while government repre-
sentatives put the prime minister OF
the griddle The bankers were discuss.
ing the possible text of statement 4
was said Britain might make to satisfy
the gold standard nations.
Gravest Crisis.
The British were resisting these pleas
but their ultimatum. the gold bloc ma.
tions hope. will force the government
to depart from its middle stream pad.
ding and go to one side or the other.
The British are looking to the
Americans for the first move mean.
while throwing the responsibility fol
the situation on the United States. III
the United States stabilized the dollar
we would settle the pound" the British
are said to have told the gold four.
scme.
Doubts were expressed by experts ir
the lobbies that the pound could keer
marriage contract with the franc
should Britain say "yes" to the golo
bloc. The rapidly falling dollar. they
said, would force a divorce between the
pound and franc and a monetary
scandal" would follow.
This is the second time the gold ma
tions have threatened the life of tht
economic conference and members o
the bloc said they were fully aware tina
the conference was facing its graves
crisis.
Whirlwind developments Of the pas
"a hours forced the American delega'