The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-07-12

Member OF Inc ASSOCl0te0 fTe10
The Associated Press is exclusively
entitled to the use for republication
of all news dispatches credited to
It or not otherwise credited in this
newspaper and also the local news Of
spontaneous origin published herein.
All rights of republication Of all other
matter herein are also reserved.
Reasons for Our Policy
AS has been mentioned before by
The Tribune, there seems to be a
very close relationship between the
thoughts Of the Committee for the
Nation" a group Of businessmen in
terested in ending the depression, and
the actions Of the United States gov
eminent under President Roosevelt.
This Jason between business and
government has been strengthened
by developments at the world con-
ference in London, since the presi-
dent apparently again followed the
suggestions Of this group in refusing
to permit monetary questions in
volving our return to gold to be dis
cussed there.
Under date of June is the commit
tee advised the president as follows:
I'VE make q fundamental error
in taking to conference in Eur
ope decisions which control the
purchasing power of our dollar
and thereby the relations of all
Americans with each other. In
the London conference, we meet
group Of nations whose curren-
cies are already heavily depre-
ciated, united by common in
terest in keeping the dollar high.
They are represented by profess
sional diplomats Of long expert
ence. We meet them, one against
many, and at disadvantage. II
we are fortunate and well repre-
sented, the conference will end In
disagreement as to this point. II
not, we shall compromise our po-
sition with unfortunate, II not
disastrous, results"
Detailed and involved arguments
were presented in defense Of this po-
sition.
Now there is some evidence that
England has been sold on the ideas
of this same group which, presuln-
ably, represents the more progressive
elements in business everywhere. The
best proof is the apparent alliance
between England and America to de-
feat the gold bloc at the conference
and continue the policy Of raising
prices in each country.
The possible reasons for this new
alignment are indicated in q COM
parison between the economic situa-
tions in the two countries, issued at
the same time. It deals with wages,
unemployment, wholesale commodity
prices and debts as follows:
when compared with pre-war,
index numbers Of wage rates in
England were higher in 1920 than
In the United States. Wage rates
In England were reduced mate
rally In 1922, and have been
fairly stable since that time. In
dex numbers for wage rates in
the United States remained high
until 1929. They are now about
the same In the two countries.
Wage rates in the United States
in 1882 were 189 when the five
years before the war equaled 100.
In England they were 1913.
1T Is true that since 1929 q
greater reduction has occurred in
the United States than in Eng
land, but In 1929 wages In the
United States were much higher
than In England when both are
compared with pre-war.
Unemployment in England
has increased slightly in the last
two years, indicating that she
needs a definite rise In COM
modify prices or that the gold
content Of the pound Is too high.
In September, 1881, when Eng
land suspended the gold stand
ard, unemployment was about
equally severe in the two coun-
tries. Since that time, unemploy-
ment has more than doubled in
the United States. England
avoided this catastrophe by re-
ducing the gold value of the
pound. To reestablish employ
n1ent In England requires rising
price level, that is, an even
greater reduction Of the gold
value Of the pound than has yet
occurred.
During the war period, whole
sale prices in England rose some
what higher than they did in the
United States. When the five
year period before the war is
called 100, wholesale prices In
England for the IS years, 1918 to
1882, averaged l59. In the United
States they averaged 40. The
averages for the last 10 years
were 139 for England and 1873 for
the United States.
Average wholesale commodity
prices for England and the Unit
ed States:
England U. S.
is years 1918-32.... 159 149
10 years 1923-32.... 139 1873
S years 1928-32.... 100 1872
1.-THE public debt in the United
Kingdom Is considerably greater
Chan the national debt in the
United States, although popula-
ton and wealth are much less
than in the United States. To