Evening star., 1934-01-03
world CONDITIONS
HALT STERILIZATION
Presidents Message Holds
New Trade. PaCtS Would
Be Futile.
BY CONSTANTINE BROWN.

The unstable political conditions in
| Europe which cause vast expenditures
On armamentS render difficult any prog
resS in peace and trade agreements. and
also any efforts to bring about per
manent stabilization of currencies
! throughout the world.
That was the Interpretation given in
responsible quarters to certain passages
Of President Roosevelt's message to the
Congress.
In discussing the situation in other
parts of the world, with the exception
OF South America, the President
stated: Fear of immediate or future
aggression, and with this the spending
OF vast sums on armamentS and the
continued building of defensive trade
barriers, prevent any progress in peace
and trade agreements.
Other Nations Unwilling.
Prior to the statement, the President
informed Congress that careful lnVeS-
tigation and constant study prove that
in matters Of foreign exchange rates,
certain of our sister nations lind them
selves SO handicapped by internal and
ether conditions that they feel unable
at this time TO enter into Stablllzatlon
discussions based on permanent and
Worldwide ODJectlNeS.
1t is under TODD sterilization on
permanent basis cannot be accomplished
as long as budgets are not balanced
! and economic competition remains sucn
as to induce many foreign nations TO
! prefer a managed currency to stable
enc.
AS long as fear OF aggression remains
as alive as it is today, there Is no DOUBT
that a large portion OF the expenditure
of every nation will be devoted to COM
pctitive armaments. Under these cir
/ cunstanCeS trade barriers Will continue
/ to be erected so as to foster trade with
! in the country, while through a man
aged currency the same countries should
foster an artificial export trade. he
! case of Japan is patent example.
That country has appropriated this year
! the largest sums for her army and navy
! ever expended in peace time in the
whole history of the empire.
To discuss stabiliZation with Japan
under such circumstances would be en-
tlrely futile.
| France Also Cited.
The same thing may be said about
France Under the strain of her diff
cult relations with Germany. the bud
get of the French republic provides
large amounts for national defense
with the result that her budget has a
| large deficit
Other countries, like Great Britain
and Sweden, find their system OF man
aged currency is more paying than a
Stabilization at the present moment.
Most OF the countries are strongly
in favor of sterilization at their own
figure, which would work contrary to
the interests of the United States
It is recalled that last April, during
the visit of Ramsay Macdonald to
Washington the administration was
quite willing to reach stabilization
agreement, but the figure suggested by
the British, $3.50 to the pound, was not
acceptable to the United States, which
wanted StabiliZation to take place some
where above 81.
All this is past history at the present
time. however. AS long as the inter-
/ national political situation remains as
uncertain as it is today. the President
intends to let matters stand where they
tinue5 it would be futile to talk about
Stabilizat!On.
To reporters at the White House to-
day. Mr.. Roosevelt described his man
aged currency program as being aimed
at strengthening the financial structure
and bringing about eventually "a
medium of exchange which will have
over the years less variable purchasing
| and debt paying power for our people