The Washington times., 1933-04-20
INTERNATIONAL
MONEY PACT
LOOMING
Conferences Here Expected to
Hasten Return of the
Gold Standard
BY GEORGE R. HOLMES


American abandonment Of the
gold standard, to be followed by
a program of controlled currency
and credit expansion, puts an en-
tirely new face on the series OF
international conferences which
President Roosevelt will inaugur-
ate this weekend.
It divides the cards more even
ly as between the world states
men now en- route here and is
expected to lead to a new inter-
national agreement on monetary
standards for both gold and sill
yer. 3 a..
Eventually, it is expected to
hasten the worlds return to the
gold standard, with silver play
ing more important part than
heretofore.
Price Boosts Near
The Presidents decision to
abandon the gold standard for
the time being, and allow the
dollar to find its own level in
the exchanges of the world, is
further expected to have these
important results:
/. A sharp increase in com.
modify prices at home, with
consequent benefit to the farmer
and producer.
2. Improve Americas for
eiCn trade, through closer ap-
proach to parity between the
dollar and foreign currencies.
3. Strengthen President Roose-
velt's hand in dealing with
those countries which earlier
abandoned the gold standard
and have taken advantage Of
their deprecated currency posi-.
tion to raid Americas markets.
4. Halt the agitation for un-
controlled initiation.
Roosevelt Holds Cards
That the inflationary move will
increase commodity prices at
home was amply demonstrated by
yesterdays upswinging markets.
The rising tendency is expected
to be continued for the time be-
ing.
Most of the countries with
which the United States does
business have been manipulating
their currencies for some time,
Great Britain in particular. Now
the American Government is dealt
a hand in the same game, with
President Roosevelt holding the
cards.
AS one of Mr.. Roosevelt's closest
advisers phrased it:
"This policy makes it easier
for Britain and other debtors to
pay their debts to this country,
and it makes it easier for us to
compete with them in foreign
markets. And it strengthens
our position in the world eco
nOmic conference"
So long as the dollar was so
dear in the money marts of the
world, foreign purchasers have
been steadily avoiding buying
American goods, and have been
seeking markets where their
money would buy more.
Canadian Example
Canada, one of Americas best
customers, offers one example.
For some time, the American
dollar, gold supported, has been
at premium across the border.
To buy a dollars worth Of Ameri.
can goods, Canadian purchasers
were compelled to put up ap'
proximately $1.15 in Canadian
money.
Naturally, Can adams have
tended more and more to seek
markets where their money would
not be at a discount; in Britain,
for example, which permitted the
pound sterling to stuff some Is
per cent after she abandoned
gold.
The Japanese, along with the
British, have played the depreci-
ated currency game to the utmost
in the past year.
With the whole world now off
the gold standard, France alone
excepted, the stage is set for the
conferences here in washington,
and the world economic confer.
ence in June to establish new
monetary standards for both gold
and silver.
This would be calculated to
have a Stabilizing effect through
out the world and end the rapid
fluctuations that have been more
or less common since the World
War.
rrIIrn DV rae