Evening star., 1933-07-05
PRESIDENT WISHES
FARLEY SUCCESS
Hopes Conference Will Not
Be Wrecked and Acconr
p|ish Good.
BY CONSTANTINE BROWN.

Despite the gloomy reports from Lon
don. President Roosevelt is hopeful the
Economic Conference will not be ship
wrecked, but will continue to work on
matters contained on its original agenda
until something constructive Is achieved
It is considered unlikely in we'll in
formed quarters that the desire of Six
nations which form the gold block to
have an all-round stabilization Of cur
rencies, when this is not practicable
at the present moment, should prevent
constructive efforts which would bene-
At the nations throughout the world
There are other go nations in London
which DO not belong to the gold bloc
and are not in sympathy with the ideas
OF that small group of nations. These
nations want something done regardless
Of the stabilization Of currencies.
Regarded Preposterous.
As q matter Of fact. it seems prepos-
ferrous to men in high position in the
administration, that the gold bloc
should ask this country to return to the
gold standard or stabilize its currency
at the present moment. France had
been on the gold standard for 4 years
before it decided in 1926 to return tc
the gold standard. Great Britain
abandoned the gold standard 20 months
ago, and in a statement in the House
OF Commons yesterday, the assistant
secretary Of the treasury declared that
he could not foresee the time when
Great Britain would stabilize her cur
rency. The United States has been of
the gold standard for only three months
and 1t is too much to ask this country
to abandon 1t because the few remain
ing gold" nations find it convenient
for their commercial and economic
purposes.
The fundamental principle which
guides this administration Is that cur
rencies must find their level within
the country. in terms Of relation to COM
modify prices. 1t is quite true that
this form Of eventual stabilization Ii
going to go through long process and
that international exchanges will have
to remain unstable for a while But 1t
is no good 1t is stated in responsible
quarters, for any nation to endeavor to
stabilize its currency on the old gold
basis until the real value of the dollar
has been determined in terms Of COM
modify prices.
United States Attitude.
The American delegation in London
has made it clear to the other nations
that the Government of the United
States considers gold as valuable as
set in the economic life Of each coun-
try and for that reason it is important
that it should not be considered as q
merchandise to be exported from one
country to another to pay of the trade
balance. but it should be kept within
each country as bullion only. to guaran-
tee the currency of the country
The idea Of forming a gold stabiliza-
tion fund by the principal banks Of
issue corresponding to the Federal Re
serve Bank is not looked upon with
favor by this administration. Such q
fund would mean the letting dowp of
the bars which have been established
few months ago in this country by
the embargo on gold. and America is
not in q position. for the time being,
to resume the export OF gold. 1t Is also
questionable whether the Federal Re-
serve Bank could join in such a move
on its own initiative because of the
speculative character OF such an
operation
These views Of the American Gov
ernment have been made very clear in
London by our delegates. and 1t is
hoped that after the first excitement
over the Presidents plain speaking of
last Monday the other nations will see
the soundness of the economic argu-
mentS which have led Mr.. Roosevelt
to make his frank statement and will
settle down to work on the other prob
lens contained in the agenda Of the
Economic Conference. This. at least, Is
the opinion Of the administration
Do Not Share Views.
OF course, there Is the possibility
that the other nations in London which
look upon the London parley as q mix
ture OF political and economic con-
ference should not share the views of
the American administration and pre-
cipitate crisis.
The French government. which has
been leading the 'return-to-gold" move
ment, is figting for its life.
The French have already reduced the
value Of the franc by a NTH Of its
previous gold value in 1925, when they
stabilized their currency. 1t will be
difiicult for the Daladier cabinet to re-
main in Office, If it came before the
Chamber with a proposal to reduce the
franc once more. 1t would be thrown
out in "a hours.
OF course the American Government
does not ask any other nation to follow
its example and depreciate its currency,
but the French believe that unless the
other currencies are stabilized at q GER
tain determined level. the French ex-
ports would suffer. 1t Is for this reason
that the French delegates are 50 anx-
ious for everybody to stabilize its cur
rency. They cannot afford to wait the
long period Of time which will be re-
quired for each country to determine
the value Of its currency, on the basis
Of its relation to commodities within its