The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-05-20
| Cover the World
by WILLIAM PHILIP sIMMS-

UTAsHINGTON May 20.-Almost entirely
w undercover, movement toward interna-
tional sterilization Of currencies was going for
ward on several fronts today.
Secretary Morgenthau's speech, serving notice
on the world that the United States stands
ready to stab lie whenever the other major
nations are prepared TO come into the game
without any cards up their sleeves. had far
greater repercussions abroad than is openly
admitted.
Every important country in Europe is un-
easy over the stability of the gold bloc Even
sturdy Switzerland is talking Of initiating by
following course similar to Americas
France is known to be bringing friendly pres
sure on Great Britain not to turn deaf ear to
the open invitations broadcast by the United
States.
France is fighting against another devalua-
ton of the franc, with the odds against her
winning unless international sterilization is
brought about soon on terms enabling her to
Withstand the increasing pressure.
ONLY one thing stands between France ana
~ devaluation. That is the fact that the
French people are badly burnt children and
ardently dread the fire Between 1920 and 1925
they had 30 cents taken out of every dollar of
their savings by the francs drop from approx
mately five to 25 to the dollar.
Another devaluation, cutting still further
into the proverbial savings in every French SOCK
admittedly might have serious political roper
cusslons.
Yet matters are rapidly coming to climax
The ordinary budget is out of balance by some
1854 100000 Another $600O0O0OO, due to extra
budgetary OUTLAWS, puts the country's books not
far from billion dollars If the red
The Chamber of Deputies meets May %. A
showdown is expected. Flarce's national defense
appropriations are heavy ard may grow heavier
if Germany sets the pace.
The French have been the most consistent
boosters for sterilization They contend that
the collapse of the gold bloc would have far more
serious results on the world situation than the
British, at least, are willing to admit Trade can
not thrive on elastic dollars.
THE future of the German mark is also in
Il the balance. 1t would not require very much
to start a new wave of imitation or devaluatlon
throughout the world, upsettng the compare
tive stability already achieved and Wrecking
world trade just as it begins to show signs of
recovery.
The Japenese yen has been devalued to
point where, along with other factors, it is
helping the goods of Nippon get over the tariff
walls of practically every country on the globe.
World prices it is agreed, must be brought
into approximately their proper relation to the
various currencies. But if a sterilization agree
ment be reached among the principal
powers, without too much disparity between
them, prices would not be long adapting them
selves to the new situation.
About $16OOOO0OO will be due the United
States on June Is from war debtors. 1t will
not be paid. Capitol Hill is beginning to fret
anew over the matter AS a new war debts
settlement would be difficult, if not impossible,
without stabilizaton-that is to say without
fixing the kind of money it would be paid in
the next few days will witness a move here to
have Uncle Sam initiate an effort to clean up
the entire mess at one big conference.