Evening star., 1933-06-28

OH gold 1t least for the time being.
As q sequel to the bankers meeting,
q representative Of the Bank Of France
had lunch with Neville Chamberlain.
British chancellor Of the exchequer, and
it was reported that the Dutch position
was again under discussion.
God Plan Approved.
Senator Key Pittmsn's gold resolu-
ton achieved further marked success
today when the Monetary Commission s
Gold Committee unanimously approved
the proposal as reported from its sub
committee.
The Pittman resolution, as adopted, Is
to all intents and purposes the same as
1t was submitted by the Senator, al
though there were some slight changes
in phraseology. 1t provides for ultimate
stabilization return to the gold standard
when feasible, and withdrawal OF gold
from internal circulation. 1t also low
ers the legal gold coverage OF central
banks to 25 per cent.
The agreement was reached this
morning, however, only after strong OPP
position from the German delegate, DR..
Geheimrat Woke. He objected to
clause which says that under modern
conditions monetary gold Is required
not for internal circulation but as
reserve against Central Bank liabilities
and primarily to meet external demands
for payments caused by some disequl-
librium on foreign account"
The German delegate sought to in
troduce the word temporary" before
the word "disequilibrium.' His point
was that II permanent disequilibrium
existed it might put any country in an
impossible position in the distant fu-
ture. Germany might be compelled to
ship out gold to her detriment.
Merely States Principles.
Leon Fraser American head OF the
Bank for international Settlements. ex-
planned that the resolution did not pro-
vide for legislation. but merely for the
laying down of principles. DR.. Woke
then accepted the proposal on the
understanding that his objection would
be brought before the Monetary Com
mission along with the resolution.
1t was understood that the American
delegation was greatly pleased with the
progress this important proposal is
making in committees. Senator Pitt
mans resolution was coupled with an
other providing for the rehabilitation OF
silver, but the Monetary Commission
separated the two and sent them to
different committees.
The Senator had been anxious for
the two resolutions to 60 hand-in-hand,
but the silver section reportedly was
meeting difficulties. However, the feel
ing was expressed In American quarters
that the adoption Of q gold program in
itself would be . notable achievement.
Secretary Of State Hull'S resolution
for the removal OF excessive trade bar
riers received further strong support in
committee this morning. Japan. Nor
way, Belgium and Holland all expressed
general approval. The committee Is
still In the process Of debating the pro-
posal and no action has been taken.
Japans support Of the resolution Iii
committee was coupled with the visit
TO Mr.. Hull by Viscount Kikujiro Ishii
and 1t was understood that they had
tariffs under discussion.
May Call on Mo,ey.
A dramatic call on Prof. Moley to
help save the gold standard by q tacit
understanding to maintain the dollar
somewhere near the present level was
under consideration by the four Euro
pean gold countries. 1t was understood
in informed quarters.
Inc golo Dloc was using all It's energy
to persuade Britain either to stabilize
the pound on the franc or to find q
formula by which part of the present
pressure on the currencies of Holland.
Switzerland, France and Belgium could
be removed.
The gold bloc was insisting on some
form Of stabilization despite ,Britxin's
apparent rejection of q pan to tie the
pound to the franc or to issue a decla-
ration tending to throw Britain's
weight on the side Of the gold bloc
The gold group, 1t was said. already
has privately brought up the subject OF
stabilization with members of the
American delegation.
The members of the bloc, It was as
serted, will attempt to convince Mr..
Moley that it Is to Americas interest
to keep Europe on gold, thereby pre-
serving the dollars present advantage
In relation to European currencies.
The intention of the gold countries
Is to work quietly, it was said. and not
to seek formal stabilization, but to be
content with an informal under
French quarters said M. Bonnet was
likely to seek meeting with Mr.. Moley,
N tznT IL