Evening star., 1934-02-02
Conferences Designed to
Prevent Currency Strife
Under Way or Due Soon.
REACTIONS OF EUROPE
BELOW EXPECTATIONS
Fear for Program Seen in Pos
sible French Embargo on
Gold Shipments.
BY the Associated Press.

BY the Associated Press.
A series of private money talks with
Great Britain was indicated authori-
tativeiy today to be either under way
Or about to begin. as officials here in
Sestigated actions in London and
Paris to determine their own course.
In the intricate web of European
governmental high finance. authori-
ties saw possibilities that might de-
termine the future of President Roose-
Eelt's dollar program. Reactions
abroad yesterday to the 4o.s6 per
cent devaluation and the new high
for gold were not considered highly
satisfactory here.
High sources conceded the Roose-
velt gold policy could be hampered
by French embargo on gold which
would eliminate this heavy source OF
the world market supply and sinful
taneously act against the effect OF
Americas fixed S35 an ounce price.
Gold Movements Checked.
Officials watched particularly for
movements that might affect the
gold standard position of France. such
as continued heavy drains OF gold
from Paris to London.
Although some here predicted a
heavy flow of gold into the United
States because of the profit inherent
in foreign gold prices considerably be-
low this country's S35, the belief was
nevertheless current in authoritative
quarters that if France should go oil
the gold standards, it would be be-
cause of British rather than American
activity.
Coupled with this opinion, how
ever. was the view that it would be to
iondon's benefit to have France on
gold, that to keep the pound at
around S. it is necessary for London
to draw on Paris for gold.
Another alternative viewed possible
here would be for Great Britain to
WELD her huge equalization fund in
the dollar market.
Such action might mean currency
between Washington and London
which Secretary Morgenthau asserts
would be costly to both" countries.
Oficials, nevertheless, predicted early
use of this Nations s2,o00,000,0O0
fund.
Understanding Sought.
The middle and best ground, as
some officials here gauged it, was an
understanding on currencies. Discus
sions with London we're viewed as the
start of the move.
Domestically the administration
was watching for commodity price
response to the 5906 per cent dollar
and what Morgenthau called a 1884
model gold bullion standard" Treas
ury experts confidently expected the
rise to come-provided there are no
unSettling European moves-but said
there was always lag behind rlS-
ing gold price.
Although the devaluation move
bounced stock market prices upward
Yesterday, commodity prices did little
or nothing The Bureau of Labor
Statistics reported that wholesale
commodity prices moved upward
slightly during the week ended Janu-
ary 27. An index prepared for the
Associated Press yesterday showed if
anything a narrow decline.
The Treasury yesterday took over
the S131 100000 of gold held by the
Reconstruction Finance Corporation,
Cost Plus Handling Paid.
Jesse H. Jones, chairman of the
corporation, said the gold had been
taken at the actual cost plus handling
charges and interest, leaving the cor
poration without either a profit or
loss on its three-month campaign to
raise commodity prices through pur-
chase of gold at home and abroad.
The corporation held approximately
ti08, 100000 of gold in London and
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