Evening star., 1935-05-15
MORGENTHAU TALK
RESPONSE STUDIED
Senator Thomas Proposes
World Conference to
Stabilize Money.
By the Associated Press.

BY the Associated Press.
The Capital today studied develop
ments from Secretary Morgenthau's
offer to talk international money
ratios, but on Americas terms.
Senator Thomas, Oklahoma Demo-
crat, a silver advocate, suggested a
world currency sterilization confer
ence embracing both gold aid sill
YER
Ogden Mills, Treasury Secretary in
the Hoover administration, sharply
challenged Morgenthau's assertion that
failura of the Republicans to abandon
the gold standard in 1882 was ECO
nomic suicide"
Increase in Stocks Claimed.
Mills said in statement IN New
York that instead of gold leaving the
United States in 1882 in alarm
ing amounts" as stated by Morgen-
thau, the calendar year showed an
increase in the country's gold stock
He contended the 1893 banking panic
was not due to remaining on gold,
but because of the fear of foreigners
that the new administration might
abandon gold"
Thomas introduced a resolution that
would request President Roosevelt to
suggest to other nations the adviSa-
bility of preparing for early concerted
action and of considering the use of
both gold and silver "at an agreed
and fixed ratio as a form If specie
N ha l,a1l of
the currency of the several respective
nations"
But first. Thomas told the Senate,
the dollar should be devalued further
He said:
Before We can stabilize We must
first adjust the dollar No one is
of the opinion that the dollar is at
the point where it should be sta
bilized Other nations find them
selves in the same position that
We do"
Held Propaganda in London.
Thomas added that Great Britain
was perhaps the only nation that
could take the lead toward interna-
tional stabilization unless America
III oO olb0N diA4 ouJ llOiIl dDL Odu.
where interest centered on the British
pound. came statement by a high
London authority that Morgenthaus
speech was propaganda for home
consumption"
The Treasury head at a press con-
ference, meanwhile. parried questions
of reporters as 10 reaction to his .ad-
dress on the dollar.
From within the country. Morgen-
thau said, he had received numerous
compliments. but from abroad all he
knew was what I have read in the
papers"
Asked if there was any significance
as to the time chosen for his address,
he replied
None, except that the 18th is my
lucky day
Paris Interpretation Cited.
His attention was called to an inter-
probation of the speech in Paris as an
"olive branch" extended to Europe
We only grow apples on the farm,
he said. referring to his Dutchess
County, N. Y, estate. I'VE don't &c
in for olives"
The Secretary said the speech had
been carefully prepared and would
have ito stand on its own feet"
1t was made amply clear also that
Britain, still off the gold standard
was clinging to its do nothing and
say nothing" policy on stabilization
and that the American Treasury head s
remarks were not considered an invi-
tation to London to take the lead.
The absence of anything more than
a passing reference to the silver policy
was considered significant in some
quarters. The view was revived that
American silver buying perhaps was
being used as club over England, be-
cause of the adverse effect of a con-
tinued rise IN silver prices, due to
Britain's interests in India.
End Of Experimentation Seen.
Paris saw the speech as an ECO
nomic olive branch" and spokesmen
there added the assertion that at
up to England now" In banking
circles there some viewed it as her
aiding the end of period of none
tary experimentation, "brutally begun"
soon after the London Economic Con-
ference.
In Rome decree was promulgated
forbidding the expectation of silver
from Italy. Speculation had it that
the move was caused by the high price
of the white metal.
italian banking quarters. however
advanced the idea that Italy would
S,ood roi1nh eilynr m fpopna n,,rrapt
East African military and colonial
operations.
Beyond brief furry in mining
shares, the speech had negligible effect
upon domestic markets and foreign