The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-07-18
ROOSEVELT is
BELIEVED NEAR
DOLLAR COAL
Sterilization Point Not Far
OF, Assert Foreign
Experts in u. S.
BY WILLIAM PHILIP SIMMS
soripps-Howard Foreign Editor

WASHINGTON, July 17.-Anxious
foreign observers here today were
of the opinion that President
Roosevelt's campaign for a cheaper
dollar was nearing a climax and
that his goal was close at hand.
The dollar, in their opinion, will
not fall much below It's present
value, around s4.78, just 8 points
from it's old par of S48G to the
pound, when both Britain and
America were on gold. Likewise,
in terms Of commodity prices, the
dollar was nearing the 1926 level,
supposed goal Of the administration.
While everybody here is now
aWare that the President attaches
no magic to the OLD S4.96 dollar
pound formula, few believe the
British will allow the ratio - sink
much below that point if they can
help it. And apparently they can,
since they have an exchange sta
bilization fund" of nearly a billion
dollars with which to play the game.
Ute Many hedSONS
Thus the fact that Che dollar
pound ratio reached S4.78 just as
the dollar approaches its 1926 value,
as measured by the price index, is
held to be significant. Economic
advisers to foreign governments
here. therefore, believe the stablliza-
ton point is not ar off.
In support of this contention they
cite numerous additional reasons.
While congress insisted the 1888
dollar was too high, they observe,
it also failed to register the slight
est desire to return to the 1920 dol
lar, which was much too cheap. The
administration made it a6undantly
clear that what it was after was a
happy medium, and the 1926 level
was the one most frequently men
toned.
100 Average in 1926
The 1926 level was selected be-
cause in that year the average of
the high and low prices Of the 1920
1890 decade was reached. The COM
modify price meek of the United
States bureau Of labor statistics
then stood at 100 as against a 60
cent dollar in 1920 and a 100-cent
dollar in 1888.
That President Roosevelt is seek
ing such a commodity dollar" it
is pointed out, was clearly indicated
in his now historic note to the world
economic conference at London in
which he refused to stabilize the
dollar on international exchange be-
fore stabilizing it at home in terms
of price level.
AS the President now is regarded
as being within striking distance Of
his main monetary objective, foreign
experts believe he will Don make
use of the power given him by con-
gress to lower the gold content Of
the dollar.
Constant Dollar Possible
But while he has authority to
lessen it by so per cent, few be-
lieve he will go that far.
Back in April, it is recalled, the
influential committee for the ma
tion-Which comprises several hun
dred industrial leaders and the
heads of the five national farm or
ganizations-gave 42.8 per cent as
the reduction necessary to raise the
price level to the desired point.
Since April prices have more
than doubled in some important in
stances, and greatly improved all
along the line. BY reducing its
gold content and adjusting the
treasury price for gold from time to
time. the committee said, the dollar
can be maintained constant in pur-
chasing power which, apparently, is
what the President is seeking.