Evening star., 1935-05-14
TALK
ON DOLLAR SEEN
CONFIDENCE SPUR
U. S. Held "Not Unwilling to
Stabilize" Under Right
Conditions.
FIGHT DECLARED BEGUN
BY OTHER COUNTRIES
Roosevelt Policy Credited With
Averting Disaster-Hoover
Administration Hit.
BY the Associated Press.

BY the Associated Press.
Secretary Morgenthau's speech de-
claring that the American dollar Is
absolutely sound" and that the
United States is mot unwilling to
stabilize" under certain conditions was
widely regarded today as an official
New Deal reply to critics who assert
that an end to monetary uncertainty
is needed to restore confidence.
In Wall Street, as here. principal
question talked over today was the
probable effect Of the speech on the
much-discussed restoration Of assur-
ances as to the future of the dollar
In New York's financial community
some bankers and economists said
the speech should help restore con-
fidence. while others said they saw
little meaning in it,
What. II any, future moves the
speech portends was not made known.
All indications from administration
sources have been that Stabilization
was a topic for some time in the fu-
ture rather than the immediate pres
ent. Morgenthau's speech was taken
as a sign that the United States does
not intend to act singly for interna-
tional stabilization.
Did Not Start Fight.
"The world should know" he said
last night, that when it is ready to
seek foreign exchange stabilization
Washington will not be an obstacle
Our position was that of an innocent
bystander who suffered untold loss in
a fight that we did not start, and
from which We could not escape.
Why should we be singled out and
admonished that the moral duty to
restore order is primarily ours? Be-
fore We make any commitments we
must be sure that We will not lose
what We have just regained.
I'VE are not unwilling to stabilize.
However, if the great trading nations
elect to continue under the present
absence Of rules we are no longer at
a disadvantage. We have revalued
our currency no more than was neces-
sary and We can go either way. Our
hands are united"
so far from engaging In q COM
pstitive devaluation race with the 9TH
er nations. we hold out to them a cur
rency Of such steadiness that the nor
NAL tendency may very we'll set the
rest Of the world to move gradually
toward practical exchange stabiliza-
ton. If that can be achieved, the
final step should come easily and
almost Of its own accord. Unless
somebody rocks the boat that would
be the natural course.
Easy to Get More Paper.
I'm estimating the future of our
foreign trade in relation to our none
tary policy, we may as well face the
question whether We wish to sell
abroad vast quantities of goods that
the buyers cannot pay for, unless we
lend them the money. OF course, ii
we want more paper there are plenty
OF international bankers to arrange
the details We felt rich on that
paper during the roaring 20s. Now
we know better.
I'm. place of paper, under the opera
tion OF our new monetary policy, we
have been receiving large shipments
Of gold and silver. Come of it came
to settle trade balances. and some
represents capital seeking refuge in
our sound currency. Varicus econo-
mists will tell you that this policy is
likely to end our foreign trade: that
first we strip the world Of gold and
then our foreign trade dies. But we
are not stripping the world of gold
We have more gold .han ever before
but the worlds supply of monetary
gold is also increasing rapidly. Pro-
duction now proceeds at the rate OF
about 81 600. 900, ,00o annually, and will
continue to increase. The great na-
tions are restoring their reserves
Meanwhile, percentages If the total
lNnntinnad on pona & NnI,,,nx, n