Evening star., 1933-07-03
GO[DBL0CWARNED,
MAY LEAVE pARLEY.
Roosevelt Tells Nations to
Get Down to Work on
Real Issues.
CONTINUED From First Page.)

although it was understood that there
was divergence In British opinion and
that the Bank of England wants to
support the gold countries policy.
Declaration Framed.
The gold bloc countries. with the ad-
dition of Poland. meeting this afternoon.
framed a declaration that they intend
to maintain themselves on the gold
standard ''at the present parity and
within the framework Of the existing
monetary laws"
The text of the declaration read:
The undersigned governments. con-
vinced that maintenance OF their cur
rencies is essential to the economic and
financial restoration of the world, Tor
the return of credit and for the safe
guarding of social progress already ac-
complished. confirm their formal will to
maintain the free functioning of the
gold standard in their respective 0oun-
tries at the present gold PARTIES and
within the framework Of existing none
tary laws, and ask their central banks
to remain in close contact in order to
give to this declaration the maximum
effect"
The declaration was signed by repre-
sentatives of France, Holland Italy'
Poland, Switzerland and Belgium.
Consider Adjournment.
The gold bloc representatives were
understood to have further considered
the question of adjournment OF the
conference this afternoon.
At the same time, the British delega-
ton held a meeting in Downing street
1t was arranged for the gold bloc
members and the British to meet at
6pm. q pm, Eastern standard time)'
when it was assumed the wnole sltua-
tion would be debated.
The gold bloc drive to secure ad-
iol1rnment of committees continued late
in the day when three others followed
the lead Of the Drafting Committee,
The Committee on Commercial Policy
adjourned until Thursday and the Com
mittee on Subsidies until Wednesday
The French sent regrets that they were
unable to attend meeting OF the SUP
committee on Re-establishment OF the
international Monetary Standard ana
that body adjourned sine DIE
It was understood the Swiss move
for adjournment of the Drafting Com
mittee originally contemplated an ad-
io,rnment sine die. but Walter Runci-
man chairman of the British Board OF
Trade. insisted that two or three days
must suffice and Thursday was decided
upon.
British officials at Meeting.
There was an interesting develop
ment at the evening meeting OF the
gold state delegates with the BRUSH
when Montagu Norman. governor OF
the Bank of England, and Neville
Chamberlain. British chancellor of the
excheuuer. appeared to represent Great
Britain.
These two financial authorities had
been reported to be at opposite poles
as to whether England should dlsre-
gard American policy and assist con-
tinental countries to maintain the gold
standard. Mr.. Chamberlain is under
stood to have preferred to follow the
American lead. while it was said that
Mr. Norman wished to help the goio
bloc.
In response to the Presidents state
ment both Charles Rist. French expert,
and DR.. L. @. A. Trip, president OF the
Netherlands Banks, two of the staneh-
est advocates of the gold standard,
called upon peoples of gold standard
countries to keep cool.
Rist said confidence can not be
shaken If the gold nations Immediately
pay out metal on demand, but he added
that 1T is q sign of mental disequ1ll-
brium in the geological museum-con-
ference headquarters-that these ques-
tions have to be discussed at all.
Trip declared that States OF the So
called gold bloc control about half OF
the gold coin of the world" adding that
"if they cooperate no danger can touch
them so long as the public remains
cool"
Italy Won't Budge.
Alberto Beneduce, president OF the
DI1htip Works and
another bitter antagonist of currency
depreciation. gave the indication that
the gold bloc would continue to exert
pressure on Great Britain 70 support
them.
He said I'VE hope to convince certain
circles very soon of the necessity Tor a
rapid return to gold. and we ourselves
will certainly not bulge an inch from
our present position
Italy, while off the free gold stand:
ard. is firmly maintaining the gold
value of her currency and Is urging
quick general stabilization.
One expert said:
"Mr. Roosevelt. fortunately. is trying
to bring the conference back to the
main purpose for which it was calleo,
namely, to reconftr truct the price levels
of world trade and to permit trade to
flow through natural channels without
excessive obstruction.
IF the conference accepts this key
note there is still hope that it will serve
its high purpose. His statement leaves
no doubt that the President meant
what he previously said about domestic
progress and willingness to work along
really constructive lines"
Artificial Experiment Disfavored.
The Presidents message said that he
would regard It as - catastrophe
amounting to world tragedy II the
diverted by the proposal of a purely
artificial and temporary experiment"
for currency stabilization of few ma
tions only.
such action he said. such di-
version, shows singular lack OF pro-
portion and failure to remember the
larger purposes for which the Eco
nomic Conference originally was called
together.
Il do not relish the thought that
insistence on such action should be
made the excuse for continuance OF
the basic economic errors that underlie
so much of the present worldwide de-
preston.
The world will not long be lulled
by the specious policy of achieving
temporary and probably an artificial
stability in foreign exchange on the
part of few large countries only"
President Roosevelts finger was evi-
IDENTIFY pointed at France when he as
serted that Reduced costs of govern
ment. adequate government income and
ability to serve its government debts"
were all of great importance for ulti-
mate currency stability.
The ultimate fixing OF the dollar
value at a fixed level which viii remain
approximately unchanged for a gen
Grafton is the objective at which the
United States is aiming, the President
said. adding:
good of other nations than q fixed ratio
for a month or two In terms OF the
pound or franc.
Ralau uced RudSAfs AdviSAA