Evening star., 1934-10-25
PRESIDENT MAKES
STABLE PRICE PLEA
International Policy of Ar
irving at "Steady Values"
Is Praised.

BY the Associated Press.
Out of President Roosevelt's address
to the American Bankers Association
there arose today clear indications
that the administration hopes for in
ternational harmony on policy OF
arriving at price stabiliZation "as
quickly as possible"
In a speech in which he challenged
the banking fraternity last night to
speed the flow of credit, the President
included this paragraph:
With respect to international re-
lationships, have been glad to note
the growing appreciation in other
nations of the desirability of arriving,
as quickly as possible, at a point OF
steadiness of prices and values. This
objective of a greater steadiness We
have constantly kept before us as our
national policy
Special significance was attached to
this because sources close to the
administration expressed the belief it
was one of three salient points in the
speech. They did not elaborate on 1t,
however.
The remarks on price stabilization
are not a pledge for currency sta
bilization which many bankers desire.
Many of the 1000 delegates who
crowded Constitution Hall to listen
regarded the speech as leaving the
door open to whatever monetary
strategy may be deemed advisable to
attain the desired price level and
then keep it stable.
Managed Dollar Wish.
It was recalled that the President
has expressed wish for dollar that
would remain steady in purchasing
power over long period-in other
words, managed dollar.
The other point stressed as salient
was his challenge to the banks to re
sumo their responsibility" and expand
the flow of credit.
Francis Marion Law, retiring presi-
dent of the Bankers Association,
which concludes its siXtieth conven-
ton today, said of the President S
speech:
out of the suggestions made by
the President and Mr. Jackson Rey-
nolds (who also spoke) there can
ana De WI hSu odO a oOOAAN
program of far-reaching cooperation
between the Government, the banks
and the other groups named by the
President, the kind of program that
would be a real contribution TO the
cause of recovery
Other bankers received the speech
with comments that ranged from "ex-
cellent" to disappointing.
One high authority said privately
before the speech that bankers hoped
for assurances as to budget balancing
and private profits.
The President said nothing about
the budget, but he did enunciate a
belief in private profit the words that
wealth should come as the reward
of hard labor of mind and hand. That
is what we call the profit system"
The speech was not critical in vein
and its tone was friendly. Some dele
gates had previously spoken q hope
that the President would pat us on
the head" This, the President did
not do, but neither did he attack, and
members of the association were
quick to recall praise and pledges of
other government officials as indi-
eating the administration attitude.
Reynolds, president Of the First Ma
tional Bank of New York, introducing
the Chief Executive, said he regretted
there was evidence of misunderstand-
ing between many of our country's
bankers and those whose duty and
responsibility it is to administer the
affairs of the country"
He said he wished to ask three
questions, to be answered by the
'seCret selves of those present; the
answer to the first would be unani-
nous, he said, but there would be
varied answers to the other two. He
asked them as follows:
rs it avoidable that either through
private philanthropy or the appropria-
ton of public funds the destitute, un-
fortunate and unemployed must be
cared for?
Want Budget Balanced.
Second: (And 1 put this question,
I know, to men who, from high mo-
tives and deep conviction. believe, as
I do, that the solvency of this Nation
and the prosperity of its people rest
on a balanced budget.) May we not
be in error in expecting too early a
date at which, even with the strictest
economy and integrity of administra-
ton, the budget may be balanced; =;
and can any one of us fix precise
date when such balance can be at
tanned without fear that our prophecy
will be made ridiculous by subsequent
events?
Third: (And I put this question,
I know, to men who passionately be-
lieve. as I do, that without monetary
stability we face chaos) If any one
of us had the grave responsibilities
and duties of the President of the
United States, and were facing, as he
is, international monetary instability
abroad and diverse demands for in
f1ation at home, would we at one
stroke both tie our hands viS-a-vis
the currencies of Europe and the
Orient and risk consolidation into
one irresistible program the inflation-
ary demands here, by making a state
ment today that the very definite
sterilization of the dollar, effected last
January and since maintained, should
stand for all time and under all cir
cumstanceS?"
Mr. Roosevelt, prior to appearing
before the bankers, Cancelled all late
engagements in order to devote the
time unin. erruptedly to the prepara-
ton of his address, his last scheduled
speech before the congressional elec-
tions Contrary to usual practice, he
decided against broadcaSting it by
radio.
Constitution Hall, where the Presi-
dent spoke, was jammed, and an over
flow meeting was arranged in ad-
joining Continental Hall, to which
the Chief Executives remarks were
carried hv 1OIII-cnaokor