Evening star., 1933-03-12
Britain Halls RoOsevelt's
Courageous Leadership
BY A. G. GARDINER.

LONDON. March 1.-THE public on
this side of the Atlantic mas followed
with mingled admiration and anxiety
the thrilling drama Of which President
Roosevelt is the central figure.
There is universal agreement that
the President, confronted with a crisis
unprecedented in world history, has
acted with decision and wisdom. Prior
to this week little confidence was felt
in his capacity to handle so vast and
complex a situation, but these doubts
were largely removed by the simplic-
ity. directness and power Of his In
augural address, which was broadcast
into millions of British homes, and his
message to Congress on Thursday con-
firmed the feeling Of assurance that
paralleled emergency.
This does not mean that confidence
is felt in the adequacy of the measures
so far proposed, but expert opinion
holds that President Roosevelt has taken
the wtsest course open to him. Two
expedients were possible. On the one
side he was urged to provide every bank
with the cash necessary to enable them
to reopen: on the other side he was
urged to try to bring about . gradual
and partial reopening by providing only
the solvent banks with facilities.
Both expedients would be attended
with perils. The first, which consti-
tutes a form of imitation, would lead
to the issue Of so much new currency
that people would begin to fear fall
the dollar would tend inevitably to de-
preciate in terms Of gold currencies.
From the British point of view this pos
sibility was dreaded, as the pounds
exchange value would be driven up
ward artificially by the flight of capital
from New York to London. This would
gravely prejudice the British position
by making the country dear for for
eigners, diminishing the export trade
and aggravating the general world de-
preston.
The second alternative equally in
wolves danger, for it Is difficult to see
how trade and industry in the United
States could continue with thousands
Of unsound banks finally closed. The
effect Of this Is expected 20 be reflected
in a shrinkage of business and a fall
Of prices not only In America, but
throughout the world.
In deciding to limit the immediate
action Of the Government to sound
banks and to banks capable Of recov-
cry, it is agreed that President Roose-
welt has checked a disastrous flight from
the dollar and kept the dollar at PARTY
with other gold currencies. This Is re-
garded here as the first essential and
is justified by Americas abundance OF
gold resources to meet payments abroad.
The gravest fears were felt In finan-
cial circles here at the consequences OF
imitation involving q departure from
the gold standard. It was agreed that
the repercussicns Of this course would
be fatal to the prospects of currency
sterilization in the world. France
could hardly have failed to follow suit
and the hopes Of restoring the British
currency to q gold anchorage, which
Is the prevailing sentiment in finan-
cial circles, would have been indefl-
nitely postponed.
With the Roosevelt declaration. the
immediate perils of q financial break
down that would have shattered
the currency system of the world is
removed and the way Is left clear for
rehabilitation and for an understand
ing between the United States and
Great Britain, which will stabilize the
currency relationships of the two coun-
tries. Such cooperation is held to be
zation Of the world, but to the prospects
which could hardly have survived the
adoption of an inf!ationary policy by
America and the consequent deprecia-
ton of the dollar.
With regard to the stern measures
foreshadowed in dealing with boarding.
the opinion here is that this evil. which
was the chief cause Of the banking
crisis, had no basis In the facts Of the
situation ana was due to IN unreaSen.
ing Internal panic. That panic should
yield to the inspiration Of President
Roosevelt's courageous leadership even
more than to fear Of the measures that
are now to be taken. No one here .
50 foolish rs to suppose that the peril
has passed. but the feeling Is strong
that President Roosevelt has stopped
the rot and pegged the situation on
the brink Of the abyss.
(Copyright. 1g33D