Evening star., 1933-06-23
DRAWN-OUT PAR[EYI
NOW SEEN CERTAIN
All Agreements Expected to
Be Conditioned on Even
tual Sterilization.
BY PAUL SCOTT MOWRER AND
NEGLEY FARSON.
BY Cable to The Star.

BY Cable to The Star.
LONDON, England June 23.-The
World Monetary and Economic Confer
erce is not going to adjourn. 1t is 60
ing to continue for several weeks and
perhaps much longer.
This seems certain AS a result Of nu-
merous private talks among the French,
British and Americans here during the
last 48 hours. All recognize that no
immediate results can be achieved
An effort therefore, will be made to
draw up policies, plans and agreements
to be put into effect 'as soon as pos
sible," which, in the minds of most of
the delegates, means after the United
States gets ready to stabilize the dollar.
When this stabilization may occur no.
body knows
The arrival of Prof. Raymond Moley,
Assistant Secretary of State, commits
stoned by President Roosevelt to bolster
the American position here it is hoped,
will clarity the point at least partially.
Some inside American circles feel that
stabilization. if approached cautiously
and without undue publicity. might be
undertaken in the near future. Others
consider that it will be risky unless five
or six months are first allowed for
President Roosevelts domestic policies
TO begin to give results.
Probable Farley Trend.
Uncertainty thus is still complete.
The only thing known is that President
Roosevelt has in mind the eventual re-
turn to the gold standard, plus the sill
yer standard sooner or later.
Consequently the direction the con-
ference is now taking can be stated
thus:
/. Currency.
Adoption of as much as is possible
of the resolution of Senator Key Pitt
man of Nevada. suggesting a bimetallic
standard, with a reduction of gold
cover for currency.
2. Tariffs.
Adoption of the Hull or some similar
resolution condemning extreme eco
nomic nationalism. Since President
Roosevelt failed to obtain from Con-
gress full powers on this issue. it is
considered that this is as far as the
United States can possibly go for the
present.
g. Prices.
A statement Of a general price-rais-
ing policy along the lines Of the Cou-
zens or some similar resolution. but
without binding any one to anything.
f. Production.
Agreements, if possible. for restrict
ing the production of wheat and one
or two other commodities. A wheat
agreement for the moment is being held
up by opposition from Australia and
Argentina.
S. Private interna tional debts.
The setting up of some machinery
whereby the differences between debt
ors and creditors may be equitably arbi-
trated.
Prolongation of the tariff trrce might
be added to this list EXCEPT that as
long as the dollar continues its recent
violent fluctuations this seems impos-
sible
Resolutions by Pittman on currency,
Hull on tariffs and Senator James
CouzenS of Michigan on concerted pro-
grams of public expenditures all pre-
sumably in the new American diplo-
matte formula, and issued by author
ity of the American delegation and in
accordance with the instructions OF the
United States Government" have begun
to make plain the American policy.
additional resolutions from the Amer
ican delegates within the next few days
Turn to British Policy.
Although the stabilization issue is
now removed from the actual agenda.
except as something to be realized at
some future time. the course of the
dollar continues to dominate the con-
ference. France, Switzerland. Holland
F,1a liz ,, ed
off the gold standard, it is feared. If
the dollar continues to fall and if the
pound finally follows the dollar.
1t is, therefore. the British policy
which promises to be decisive. British
opinion is divided into two strong con-
flicting currents. One school, including
such radical economists as John May
nard Keynes, Sir Arthur Sater and
Sir Hawtry, favors tying the pound to
the dollar and letting both go ON
good and long inflationist spree.
The other school. centering around
the all-powerful Montagu Norman.
governor of the Bank of England, and
most members of the present govern
ment. intends to continue to peg the
pound to the gold franc at the present
level and let the dollar pursue its own
adventures alone.
Although it is the latter school which
is firmly deciding the present policies,
some inside American circles feel that
there may be an eventual change lead
ing to a close Anglo American agree
rnent and resulting in throwing every
one off the gold standard prior to some
new general stabilizat:on at lower levels
all around.
This internal struggle in the groups
which finally mold British policy Is
undoubtedly one of the vital underlying
factors Of the conference The final
British trend one way or the other,
will. it is said powerfully affect the
future of the world
tCopyrisht, 1882