Evening star., 1933-06-30
DEADLOCK HOLDS
ON GOLD PROBLEM
Conference Awaits Word
From Washington on
SpecuIations.
Continued From First Page. }

embassy to consider the American
stand.
The American delegates remained
mum about whether they met to con-
slider word from President Roosevelt,
but an authoritative source said Amer
ican adherence to a plan under which
the conference could progress was un-
der consideration.
Important American quarters indi-
Gated that Mr.. Moley, as the Presi-
dents personal representative, had re-
ceived authority to agree to plan. But
it was made plain that de facto stabili-
zation. in the sense Of fixing the dollar
at definite level. was out Of the ques-
ton. and the President must be left
free to use whatever inflationary pow
ers he may desire in pursuance Of his
domestic program.
French quarters made 1t clear that
definite stabilization of the dollar was
no longer sought and they would oe
satisfied with an understanding that
sudden wide changes would be pre-
vented through checking speculation or
the unnecessarily quick movements of
large sums.
Virtual stagnation in conference
activities pending settlement Of the
bitter monetary row was evident as the
conference chambers were all but
empty.
Other Conferences
Late this afternoon the French
finance minister and another member
Of the Paris delegation, together with
Sir Frederick Leith-Ross of the British
treasury, conferred with Mr.. Moley,
Senator Key Pittman, Senator James
Couzens and Herbert Bayard Swope
who accompanied Mr.. Moley to Lon
don. The meeting took place at the
United States embassy home
After half an hour the visitors left.
presumably to go to meeting with
Prime Minister Macdonald.
Called on Roosevelt.
It was understood on high authority.
that Secretary of State Hull and Mr..
Moley sent message to the President
advising him that America should Join
Europe in an effort to halt speculation.
In the meantime. while President
gold bloc still stood pat on its ulti-
matum to quit the conference unless
immediate action were forthcoming.
Italy in Gold Bloc.
The gold stand and group. which now
includes Italy. as we'll as France. Hol-
land. Switzerland and Belgium. met
this morning with a British representa-
tive to discuss the situation, but de-
cided that nothing further could be
done pending Mr. Roosevelt's answer
The exact nature Of the message from
Hull and Moley to the President was
not disclosed, but well-informed quar-
ters understood it strongly advised the
American Chief Executive that there
be a change in policy as regards con-
trolling too abrupt movements Of cur
rency.
It was understood that Moley and
Hull in their cablegram also conveyed
to the President the gold bloc's pro-
posal for a solution to the difficulty.
Before its dispatch to America the
message was submitted to the United
States and British delegations.
Reported Formula.
A paraphrase of the suggestion is
said to be like this:
The signing powers reaf1rm their
faith in the gold standard. The powers
already on gold declare their intention
to do everything within their power to
remain on gold and maintain the pres
ent parity
The powers of gold declare the in
tention to return to gold as soon as
possible. but it is for each country to
decide when and at what rate. The
present non-gold powers express ap-
probation for the effort being made by
the gold bloc to hold its position and
declare the intention Of aiding in stop
ping speculation. Until sterilization
and return to gold are possible all
signatories join in agreeing to strive to
prevent undue currency fluctuations
The Bank Of France Is understood on
high authority to have come to the aid
Of the Dutch guilder This assistance
is said to have been responsible for
steadying the guilder the last four days
after a sharp drop.
The French are said to have OBJ
tanned the Dutch promise to pay what
ever loan the Bank Of France has
made in French francs at the present
parity, the French thus avoiding q loss
If the guilder should depart from gold.