Evening star., 1933-12-03
Alarm May Hasten Action:
Compromise Urged on
Monetary Issue.
PRICES SLOW TO RISE
BUT TRADE EXPANDS
American Industry Moves Forward
and Dividend Payments Spread
Optimism.
BY CHARLES F. SPEARE

NEW YORK, December 2-There
has been more gossip this week about
the probable Stabilization Of the dollar,
with no evidence in the gold-buying
policy Of the Treasury that this is in
prospect
The price of gold has been cautious
ly advanced to around S34 an ounce.
and is now s4 an ounce above the
starting point in October. 1t is still
some distance from the goal to be
attained if the gold value of the dollar
is to be reduced so per cent from its
old parity.
The concern of the business world
is that the administration should, in
its monetary adventure, arrive as
quickly as possible at that point where
the dollar becomes a known quantity
and contracts and commitments may
again be made with assurance of pay
ment at fixed rate.
Developments abroad may hasten
stabilization or revaluation. 1t is ap-
parent that France is in serious finan-
cial straits. This week the Bank of
| France has experienced another heavy
drain on her gold reserves Altogether
| it has lost about $3.50 600 900 in the
| last five weeks. Another cabinet upset
Is threatened. The government is
compelled to float a 5 per cent loan at
a discount to cover current bills. There
should be no difficulty in selling this
| to public which is said to have nearly
! amount in excess of the gold and bank
notes in hiding in this country prior
| to March 4. This, however, is but
temporary relief.
Imitation Battle Crows
The cleavage between the advocates
OF sound money and those who see no
relief save through currency imitation
is steadily growing. 1t is dificuIt to
reconcile these opposite points of view
Certain 1t is that those in the first
group cannot convince their opponents
! through charts and graphs and a
learned exposition Of price indices and
gold variations. They must deal SIM
ply and cOncisely with causes and
| effects and bring clearly to the man
IN the street, in the factories and on
the farm what imitation has done in the
past and will again do to those in
their position
There is need also for a plan that
Will be composite Of the MANY now
suggested and which will recognize the
social and economic requirements of a
i new day and not arbitrarily insist on
a return to standards that present con-
olllonS require should be permanently
abandoned.
one OF the practical matters that has
to be dealt with during the progress of
commodity price raising is the refund
ing OF maturing Government obliga-
uons. On December Is Treasury GER
due The 6oIdeps ,st to ~ fa
a' least an equivalent sum secured 10
Ielmnurse them The bulk of this
be be the chief subscribers to the new
loans loans Treasury officials, therefore,
must get the feel of the market in
me next few days and on this establish
the rates at which they are confdent
'hey Ebe can n, attract response
shortest dated certificates they can
secure, but it is obvious that S727 OOO,-
VOO cannot be financed on a 9O-dav
pass. The assumption. therefore. is
mat either or ~ month notes will be
o1ered, and perhaps both. with the
rate Ior the year paper per cent or
slightly higher
Bond Market Nervous.
The nervous state of the Government
pond market makes the fixing of rates
delicate operation and one in which a
sup at this time would be damaging to
| government credit. From the fact that
tne price OF gold was again advanced
this week. after the pause supposed to
nave been ordered to stabilize the Gov
! ernment market. it is apparent that the
administration is more concerned over
| Its prlce-lfting program than with the
! outcome of its early maturing Obliga-
tionS
Inc stubborn manner in which the
| commodity price index resists all efforts
| to lift it higher must be disconcerting
TO the advocates Of depreciatiny the
dollar. This week it has moved a little
IN one direction and then in the other
With the net result that more items in
the hst are under or unchanged than
above the figures of a month ago
This fact, however. has not pre-
vented an expansion in various lines Of
trade, nor has the failure of that alb
rupt rise IN commodities. which was
to be the basis of business recovery and
increased business profits. checked the
movement in behalf of increased corpo-
ration dividends. This is one of the
most significant developments of the
day, for 1t appears to be spreading and
should add considerably to the buying
power of the public at the end of the
year. The Standard Oil group. for in
stance is disbfrsing this quarter double
the amount in the three months to
September 80. Two prominent indus
trial companies have list resumed pay
!, mPntS on their preferred stocks.
The demands of the public works
plan are rapidly expanding and from
now on will be reflected in increasing
, ratio each week in trade statistics. One
of the most successful of the schemes
for employment of those without Jobs
is that Just effected under the Civil
Works Administration. which has al
most Immediately absorbed tens of
thousands of manual laborers and pro-
vided them with means of Self-Support.
This measure for relief Is entitled to
the highest commendation. 1t was op-
Fortune too for there had been a
> decline in employment in October. when.
; according to the American Federation
. Of Labor figures there were still over
10 600. 900 out of work