Evening star., 1934-10-14
GOLDDEvALUAT|ON
TERMED UNLIKELY
Further Dollar Tinkering Be-
lieved Improbable at
Present Time.
BY DAVID LAWRENCE.

Devaluation of the dollar by chang
ing its gold content is distinctly i'm
probable 1t is, however, not impos-
sible. And the answer to whether or
not there will be further devaluation
lies in events not now foreseeable.
This is the upshot of 48 hours Of dis
cussion and conversation, press reports
and inferences. The truth about 1t
all-that is, the facts as derived from
original SourceS-are as follows:
President Roosevelt and Prof.
Warren, author of the gold purchase
policy, talked about monetary policies,
- but agreed that no further devalua-
ton should be undertaken at this time
or in the future, so far as now could
be foreseen, but that a definite COM
mitment against any devaluation in
the next year or so should not be
made because developments abroad
or at home, which cannot now be fore
seen, might make the exercise of such
O power desirable in the public in
terest.
Present Status Favored.
Senator Bulkley of Ohio and the
President did not discuss devaluation
at all, but the Ohio Senator did ex-
press his views when questioned by
the newspaper. correspondents. Mr..
Bulkley favored the original devalua-
ton of the gold content os the dollar
in fact, advocated it before Mr..
Roosevelt was inaugurated. So he
could hardly be claSsed as a member
of the orthodox school in the Senate
which believed in the old dollar.
But just as Mr. Bu1kley favored
the theory of devaluation in the cut
from 100 cents to so cents, so is it even
more significant that he does not be-
lieve there is any need for further de-
valuation. He believes it should be
done if the situation warrants it, but
he cannot now foresee any develop
ments that would make it desirable.
"Devaluation,' he said to me to-
day, is unquestionably like medicine
we take when we are sick. In this
case it has been helpful, but there is
no reason to believe We need to take
any more medicine. I feel that the
results have been satisfactory and
that the President has had all along
sound idea of monetary policy. I
do not wish to quote his views be-
cause did not discuss the question
with him, and my thoughts on de-
valuation would not have been in the
press at all if had not been asked
for my views. assumed, of course,
that l was expressing my own opin-
Ions and not those of the President" /"
Call Not Significant.
This explanation shows how acci-
oentaly the interviews on the White
House doorstep, as callers emerge from
presidential conferences, are assumed
to have q significance which they do
not really have
Further explanation has been made
that Prof. Warren's visit and the Ohio
Senator's remarks about devaluation
were purely coincidence. Certainly
the engagement which Mr.. Roosevelt
had with Prof. Warren, it turns out,
was made several weeks ago.
The unSettling impression which the
incidents of Thursday at the White
House gave to the financial world has
been promptly recognized by the
Roosevelt administration. On Friday
Senator Lewis of Illinois, Democratic
congressional chairman, issued a state
ment saying Mr.. Bulkley had been mis-
understood and adding that the Presi-
dent had authorized him to say no
devaluation move was being consid-
cred. The same information was
given the newspaper men at the Friday
afternoon conference which the Presi-
dent had with the correspondents. ex-
cept that it was carefully noted that
commitments could not be made as to
events not now known.
Sterilization Still in Ofing.
The Warren view Of devaluation is
that under certain circumstances de-
valuation might aid business recovery.
but that those circumstances are not
now in evidence. Clearly the admins
tration has not made up its mind to
do anything about devaluation of the
dollar. and clearly, also, the Warren
view is not entirely the Presidents.
There is, therefore, no basis for sug-
gestions that the administration really
will devalue, but is merely withhold
ing word as to a decision that must
ultimately be made in that direction.
My own impression is that the admin
istration has not the slightest inten-
ton Of tinkering with the dollar but
that 1t might be willing to consider
some slight adjustment of the rnld
content if the sterilization of world
currencies made such step worth
while. Sterilization is not on the
horizon now, but may come in 1895.
(Copyrieht. 1934)