Evening star., 1934-07-08

was qualified for a return to the gold
standard by its January gold re-
serve act
The opinion was expressed that II
America could officially and definitely
assure the world that the dollar would
sink no lower. this presumably would
ease the international monetary situa-
tion and make agreements easier. But
it is pointed out here that President
Roosevelt cannot If he would divest
himself of the authority bestowed by
| Congress.
Sterling Bloc Improved.
| More immediate interest is attached
| to the so-called gold bloc-France
Italy, Switzerland, Belgium, Holland
and Poland.
Experts find sterling bloc nations
| in an improved economic situation
with prices rising. 1t is regarded as
vital for the gold bloc to know wheth-
sr Germany will devalorize the Reichs-
| mark, for lower German prices will
mean more hardships for the gold
| fellows
Importance is attached to the fact
| that index figures for wholesale prices
in the United States have risen more
than 40 per cent since January, 1888,
| and in England more than 81 per
cent since 1881.
In his report, Fraser said
After years of stress in monetary
| affairs, the Bank for International
Ta;A
and fortitude.
"One conclusion is perectly clear,
namely that an international none
tary system based on gold, which is
bound to be reinstated, needs, If it
| rs to operate more successfully than
| before, common center of contact,
counsel and collaboration, in order
that it may be international in fact
as well as in name"
Gold Standard Anarchy.
The truth is. Fraser continued, that
there has been anarchy since the
war in the international operation of
the gold standard
Each country, he said, considered
| that mere fact that It's currency was
tied to gold was all sufficient to
make it part Of the international sys-
TEN, and that in every other respect
it could freely disregard its neigh
| bors and the effect upon them of a
succession of changes in tariff policy,
, credit policy and even in the gold
content of the national currency
itself.
Some order out of this anarchy
| must be evolved. Some rules of gold
standard must be established, recog-
nized and followed, and some COM
| mon agency must be used to permit
| coordination.
Fraser's report finds that a more
definite and clear statement of the
future American policy reopens the
door Ito international discussions be-
tween nations principally concerned
as to definite stabilization."
Time Near For Action.
THE time is approaching when
effective resumption of an interna-
tional monetary standard, based on
gold, can become an accomplished
fact" says the report, which makes
much of the point that the gold
standard is not an end in itself"
The gold standard, the report added,
"is the machinery and medium for
permitting, facilitating and enhancing
the exchange of goods, capital and
services, internally and externally"
Fraser held that the problem of re-
covery is largely the problem of the
value of the volume of commodities
that is moving and being consumed
and the price adjustment which may
come about either by rise in prices
or by such cost savings that goods
may still be sold even on a lower
price level with margin of profit as
an incentive and a reward"
Fraser, therefore, emphasizes the
need for a greater flow of inter-
national commerce, which at present
is impeded by trade barriers and re-
strictionS such as quota systems.
D0TANn NEJANcES D0rVAD