Evening star., 1933-11-01
President Expected to De.
eide on Usefulness of Con.
tinuing ParIey.
THREE GENERAL PLANS
TO BE ADVANCED TODAY
Complete Revision, Lump-Sum Pay.
ment and Token Weighed-Un.
steady Dollar Factor.
BY CONSTANTINE BROWN.

lOdayS conversations between PreSi-
dent Roosevelt, Sir Frederick Leith
Ross. the chief British negotiator on
the debt question, and the British Am
bassador Sir Ronald Lindsay, will prob
ably determine whether any result can
be expected from these protracted ne
gotiations.
The whole matter of a settlement. it
is understood, will be put up to the
President, who will decide what is to
be done.
So far the conversations between the
British representatives and the Under
Secretary of Treasury, Dean Acheson,
have led to nothing more conclusive
than a general survey of the situation.
There are three general propositions,
it is said, which the President will hear
this afternoon.
Full Revision Sought.
The first is a complete revision OF
the Mellon Baldwin debt funding agree
ment. This is the thing the British
desire most, but owing to the fact that
their offer for settlement is so far be-
low ANYTHING the Congress would ac-
cept. it is improbable that the Presi-
dent would even consider it.
The other is the payment OF lump
sum. But here again the difference
between the amount the British are
willing to offer and the amount which
this Government considers acceptable Is
such that it is highly doubteful whether
an agreement can be reached. And 1t
is not only the question OF the sum pro-
posed which is involved, but also the
method of payment.
On account Of the vacillation Of the
dollar the British maintain that the
only practicable way of payment would
be by floating bonds in this country. A
gold payment is inconceivable, they say,
because the distribution of gold IS
already such that payment in that
metal would further disturb the world
markets. The paper dollar is too erratic
ct present to permit settlement on
the dollar basis.
Token Suggested.
The third possibility, which Is looked
upon favorably by the Treasury, is
another token payment, like last June,
pending a final settlement at another
more IdNOIaDle lLiIc'
The British, 1t Is said, are only luke.
warm to such suggestion, stating that
palliatives are of no use and such a
question.
1t is conceivable that neither OF
these plans will materialize and in
such an eventuality the only thing the
British can do is to default next De-
cember and leave the entire matter
open for further negotiations at some
other time.
Sir Leith Ross and Sir Ronald Lind
say are also expected to discuss with
the President the question of the pur-
chase of gold by the r. F. c. in for
eign countries and mainly in London,
Paris and Amsterdam.
The decision to undertake gold pur-
chases in the world market, which was
announced last Sunday, has caused
considerable disturbance and uncer-
tainty abroad and yesterday the repre-
sentative of the British treasury had
a long talk with Eugene Black, the
governor of the Federal Reserve Board,
endeavoring to obtain a clarification
regarding the monetary policies of the
administration.
Currency War Seen.
The situation is reported to be that
the French and the British wanted to
know whether the American Govern
ment intends further to depreciate the
dollar by extensive purchases Of gold in
foreign markets. In such case, the
currencies of the European countries
may become threatened and the likely
hood of a currency war between Europe
and America appeared as dangerous
possibility Such a war, the British
pointed out yesterday, would be suicidal
for the European states and the United
States alike.
It is reported that Mr.. Black re-
assured the British, stating that there
was no such thought in the mind of
the President: that at the suggestion
of some of his economic advisors, he
decided after the purchase of American
mined gold proved to be of little use for
the purpose of boosting prices, to try by
methodical purchases of gold in Europe
to hoist the price Of gold all over the
world and in this manner also increase
the commodity prices.
President Forces Issue.
This matter of increasing the price
of commodities should have been DIS
cussed at the London Economic Con-
ference, and its premature passing
away prevented such discussions to
take place.
Now the President intends to bring
the matter up on his own initiative,
and in a more direct manner, by the
purchase of gold abroad.
In order to prove the good intentions
of the administration, the r. F. c.,
which is acting in this matter as the
Government agent, would utilize. it
was said, the good Offices CT the Bank
of England and the Banque de France
to act as its agents in the future gold
transactions in Europe.
Sir Leith Ross is reported to have
promised to acquaint his government of
the factual situation and report the
reaction of the British Treasury to the
American Government in the course of