Evening star., 1933-07-05
Policy to Stand
Against Fixed
Dollar.
L. s. TO PROTECT
STORE OF GOLD
Steinhardt Sent to
London With
Instructions.
BY the Associated Press.

by tne ASSOCldteu rteso.
Adamant against immediate
stabilization of the dollar, Presl-
dent Roosevelt moved twice today
to assure the continuance OF the
World Economic Conference at
London, which he feels is de-
sirable and certain.
First, he conveyed his latest
views to Secretary Hull in a direct
conversation with the head OF
the American delegation at the
British capital.
Subsequently, he dispatched
Lawrence Steinhardt, his minister
to Sweden, to London for freSh
and personal elaboration OF the
American position.
Will Sail Tomorrow.
MIR. Steinhardt will sail tomorrow for
the World Conference.
He conferred with the President, and
apparently will carry with him to the
deadlocked parley oral instructions from
the President to the American delega-
ton
The diplomat, leaving ahead OF his
original schedule, expects to remain
week at London before proceeding TO
Stockholm.
From his post in Sweden he may
later make personal study OF posi-
bilities of American relations with
Soviet Russia.
After his talk with Mr.. Hull, Mr..
Roosevelt was said in high quarters
still to have every confidence that the
conference will proceed.
He would not comment on his talk
with Mr. Hull, preferring to let the &C
tions at London speak for themselves.
Explains Money Stand.
At the White House, however, it was
explained quite emphatically why the
President will not consider immediate
stabilization of the dollar, which has
been demanded by the European gold
bloc at the threat Of disruption OF the
conference.
In an official source that knows, he
was described as feeling that any stabll-
zation agreement would require the
United States to establish a stabiliza-
ton fund and morally bind this coun-
try to export gold to back up the agree
ncent, if it became necessary.
He is not ready to export gold or to
enter any agreement that would morally
obligate this country to export gold.
Mr. Roosevelt realizes the question OF
stabilization of currencleS in mterna-
tional exchange means much to some
Of the European nations, but does not
regard it as a factor at all affecting
the United States.
He is looking to an eventual perma-
nent basis of Sterilization, but holds to
the opinion that such must come about
first after each country has stabilized
its own domestic purchasing power.
Wants More Time.
The President does not regard the
establishment of stabilizatlon fund, as
has been demanded, as on the agenda
OF the conference.
AS for finding the true purchasing
mower of the currencies of the various
nations, the President does not consider
there has been time sufficient to deter
mine this as yet
England has been off the gold stand
ard almost two years, 1t was polntea
out this afternoon, and France was on
at one time for four years.
The United States has been on the
gold standard only three months.
In seeking to establish the perma-
nent purchasing power OF the amer
can dollar, Mr.. Roosevelt is conSioef-
ing several factors.
some advisers have urged that the
1926 price levels be taken as basis.
Others believe that level TOO nlgh
and point to 1925 and 1924.
No fixed date of prices can be select
or Mr. Roosevelt believes, and a mean
average" is probably the solution.
Will Keep Gold Supply.
In connection with Federal Reserve
bank operations to aid in temporary
tional exchange, it is the understand
Ing ~ at the White House that this is
very likely impossible on the basis that
the Federal Reserve banks nave no
right to speculate in fore ign exchange
The President is going to keep de.
termined grip on the gold supply OF
this Nation, which he intends shan
be held as collateral for the American
currency in contrast to the theory un-
derstood by him to be held in question
abroad that gold should be used as
medium of international exchange
ro+ber than as collateral,