Evening star., 1933-06-27
GOLD BLOC MOVES
FOR STERILIZATION
Nations Act to Force Britain
Without Regard to U. S.
Dollar.
Continued From First Page

the present United States and British
programs.
England avowedly is not ready to re-
turn to the gold standard yet, and she
would. in effect, be doing this If she
agreed to the stablization scheme.
On the other hand, she would suffer
trade losses were France and other
countries forced off gold, with re-
sultant depreciation of currencies in re-
lation to the pound.
The American delegation did not ex-
pect this development, but members OF
the American group we're not partlcu-
larly surprised, since any sort OF move
by France to preserve the gold standard,
they felt, would not be surprising.
However, well informed circles close
to the American delegation expressed
the opinion that the gold-bloc scheme
was futile and that devalution OF sew
eral European moneys was decidedly in
prospect.
To Fight Speculation.
The gold-bloc bankers n the meet
ing this morning also discussed action
to be taken aGainSt group OF lnterna-
tional specula lors who have been caus-
ing recent fluctuations in currencles.
The bankers envisage concerted ac-
tion by leading countries against sucn
spectators.
Finance Minister Georges Bonnet OF
France again declared today that in the
French view the Economic Conference
cannot achieve concrete results unless
it arrives at definite proposals Tor the
establishment of stability IN cur
rencies.
He spoke at q meeting OF sub
commission dealing with immediate
measures for financial reconstruction.
Dealing with the question OF indebt-
edness, which has been under consldef-
alton for several days, Bonnet said that
settlement of the debts problem was
necessary for bringing about equilibrium:
Moreover. he continued, this could
not be sought at tie expense OF credit
itself
Bonnet added that creditors must
help debtors to the fulflllment OF obll-
cations by giving them export facili-
ties wherever possible, but debtors must
have the will to safeguard credit.
Plan No Currency Warfare.
It is for debtors, he went on, to show
and prove their own difficulties. a too
rigid procedure, however, must not be
followed, he mdlIltdliltU.
Whatever is done should be tempo
rary because more permanent measures
can only be thought of in terms of the
re-establishment of monetary stability,
Bonnet declared.
American sources, commenting on 10
days developments, made it clear tnat
they have no intention OF starting
currency warfare, but at the same time
could not fly in the face OF positive
economic situation demanding the re-
valuation of the dollar.
High sources here asserted that there
was no prospect of return OF the dol
lar to the old gold parity.
If other countries have to follow the
United States in recognizing that the
need for currency revaluation is I'M
portant, American quarters said, tnS
cannot be considered calamitous.
One American representative asserted
that I'VE are not artificially tampering
with gold but it is the real economic
situation of the world which has taken
gold by the neck and has necessitated
revaluation and change in its use"
Real progress was said to have been
made in the Monetary Committee
toward reaching an agreement in the
reduction of the minimum of gold re-
serves which central banks must keep
against currency as a step in the dl-
rection of a general return to a flxed
monetary standard.
Accept Pittman Gold Plan.
The Monetary Subcommittee dealing
with Senator Key Pittman's resolution
accepted his gold clauses and will SO
report to the parent commission Tor
further action.
These gold clauses assert that gold
81 na h1ichad tho inter-
national measure of exchange values,
that its use should be confined to en-
ployment as cover for circulation and
as a medium for settling international
balances and that it should be with
drawn from circulation.
The Pittman resolution also calls Tor
a reduction in the minimum cover re-
ouired for currencies and for the use
OF silver with gold in that cover.
Prime Minister Ramsay Macdonald
of Great Britain. president of the par
ley, called meeting of the conference
Steering Committee for tomorrow ait
ernoon to consider the progress OF con-
ference work and to lay plans for ex-
pediting it. This development was
taken in conference circles to be inti-
mately connected with the arrival to-
night of Assistant Secretary of State
Raymond Moley, who Is coming to Lon
don direct from President Roosevelt.
Prof. Moley will have his opportunity
for full discussion with the American
delegation before the Steering Com
nittee meeting The conference in
general is expecting him TO bring fresh
information from the United States
which will assist in the progress Of the
meeting.
Attitude of Waiting
The tone Of all yesterdays meetings
and informal discussions at the confer
ence was one Of waiting for the Wash
1ngton emlSsary
Representatives of two delegations,
the Argentine and the japanese, de-
clared in effect that all We can Go is
TO wait for Mr. Moley and see what
he brings us"
British quarters, however. were not
80 hopeful that the Assistant Secretary's
presence would mark an abrupt change
for the better in the conference
One high-placed British statesman
declared, in this connection. that the
messiah is not on the Manhattan"
American delegates felt that with
MoleyS coming the emphasis Of their
viewpoint would be turned away from
tariff reforms TO the Roosevelt plan Of