Evening star., 1933-07-13
OX|NDUCES CHIEFS
At LONDON PARLEY
TO CONTINUE WORK
Clear Exposition of U. S.
Difficulties Given in
Fighting Speech.
BANKING COOPERATION
MAY COME UP AFTER ALL
Move Made for Shorter Hours and
More Pay-Substitute Silver
Resolution offered.
BY the Associated Press.

Injected into the droWsy World Eco
s1onic Conference today by James M.
Cox of Ohio. who convinced his col
leagues Of the Steering Committee that
the parley could usefully continue de-
spite refusal of the Federal Reserve
Board to consider cooperation Of CEN
trail banks.
In a fighting speech which one dele
gate said "curled the hair" of the lead
ers Of the conference, Mr.. Cox gave
clear exposition of American difficulties
and induced the committee to agree to
keep working at the problems Of silver
and commercial Indebtedness.
Prominent gold-bloc delegates had
taken the position that the Federal
Reserve Boards veto on discussion OF
central bank cooperation had effec-
lively put an end to all discussion OF
monetary matters.
Taken Up With Washington.
Indeed there was an expectation that
central bank cooperation might after
all be dealt with by eliminating fea-
lures of the resolution which were OBJ
jectionable to the Federal Reserve au-
thoritieS
It was understood this possibility was
being taken up with Washington.
The Federal Reserve was reported yes
terdav to consider such discussion pre-
mature, but it developed today that the
board really considered that agreement
at this time on central bank co-opera-
ton was premature.
Continuing their drive to rejuvenate
the parley, the American delegation pre-
Sented a resolution to the Economic
work and increases in wages in proper
ton to the rise in prices.
McReynolds Submits Proposal.
This proposal, submitted by Sam D.
McReynolds of Tennessee, asserted that
unemployment is 'one of the gravest
problems the governments are confront
ed with at this time"
The meeting of the bureau, or
Steering Committee, began frigidly, with
Hendryk Collin, Dutch premier. a con-
sistent opponent of the American none
tary policy, saying with an air Of fut1l-
ity "if we could only know what the
American position is
In informed conference circles it was
reported that Mr.. Cox then launched
into an emphatic and plain but dlplo-
matte lecture upon the short sighted
ness of Europeans failing to compre-
hend the Importance of success OF the
American internal program to the en-
tire world.
AS the meeting ended it was evident
that the European delegates were i'm
pressed and it was announced that dis
cussionS in the SubcommlSSlon on
permanent monetary measures would
be resumed tomorrow.
L, S. Problems Pictured.
The veteran statesmen was described
as saying in effect:
You gentlemen must realize the
grave situation which faced the Presi-
dent of the United States when he took
office only four months ago. All banks
of the country were closed. tl1teen
million people in our country were un-
employed-half the total unemploy-
ment of the world.
The threat to the social structure
of the civilized world In that crltlcal
situation cannot be minimized. You
pentlemen must understand the prob
lens which have faced President RooSe-
velt since he took office and you must
realize how vital it is to all OF you that
the American recovery program, AFFECT
ing as it does the greatest industrial
market in the world, succeeds" ,
Mr.. Cox was reported to have asserted
that the same medicine cannot be ad-
ministered to all patients in hospital
i'm various states of illness and recovery.
and no more can the same steps be
applied to the various nations under
the present distressed conditions.
American circles expressed the view
that the circumstances In the drawing
up of the resolution which the Federal
Reserve failed to approve had been
considerably misunderstood
This resolution was drawn up by Leon
Fraser. American head OF the Bank LOT
international Settlements. in collabo-
ration with various central bank heads,
but after George Harrison of the New
York Federal Reserve Bank had left
for home.
For this reason James P Warburg,
technical adviser of the American dele
cation. insisted that the resolution
must be submitted to the Federal Re
serve Board before American adherence
was possible.
Urging on his efforts to restore the
world price of silver, Senator Key Pitt
man of Nevada submitted substitute
resolution designed to prevent debase-
ment of silver coinage or dumping OF
the white metal on the market.
This new measure. which did not al
fect the gold provisions OF the original
Pittman resolution, was laid before the
subcommittee on silver, which adjourned
until tomorrow without taking any &C
tion on it.
Text Of Resolution.
The text of the substitute Pittman
resolution follows:
BE it resolved:
"First, that all governments parties
TO this conference shall prevent further
debasement of their silver coinage or
melting of their silver coinage, except
for reissue.
Second. that all governments parties
10 this conference shall remonetlze their
coinage up to a fineness OF at least
boo 1000, as and when consistent with
their respective national budget prob
fems
Third, that all governments parties
to this conference shall substitute silver
coins for low-value paper currency as
sxpeditiously as the budgetary condi-
lions of each country will permit.
Fourth, that in consonance with
he declared aim of the conference to
eliminate or reduce trade barriers, gov
ernments parties to this conference
who now have import duties on silver
shall consider under what conditions
this obstacle to free importation OF
silver can best be reduced or removed,
and that governments parties to this
conference not now having import duty
IN silver shall as far as possible retain
the present freedom from import duties
lContinued on Pape Column a.