Evening star., 1939-07-01

was W CllSdSC ~
in a filibuster in order to attempt
to defeat the monetary bill.
This sort of back-and-forth tao
tics, designed to make football
out of national issues, reflects credit
on neither Republicans nor Demo-
Gratis and reveals the true motive of
both parties as plainly political.
The administration argues in de-
fense that the conservative Repub-
licans started the game by joining
with bloc of silver Democrats, and
that what has happened since
namely, offering a higher silver
price-was an unavoidable act of
defense.
What is more vital to consider is
that as soon as the White House
agreed to a higher price for silver
the support of the Democratic Sen
ators from the silver-producing
States was regained for the Presi-
dents devaluation bill. Thus the
majority in the Senate finally lined
up was sufficient to give the Presl-
dent the devaluation powers for
which he asked, and only the Re-
publican fllibuster of a minority
taking advantage OF the midnight
deadline, had a leverage on the
situation.
A Common Strategy.
Filibusters happen frequently when
an automatic date of expiration is
faced because it is easy to discuss
a bill few hours. The parliament
ary situation was that failure to pass
the extension by midnight last
night meant the necessity of new
bill to be reintroduced in both houses
and acted on again by committees.
The spectacle of trading votes on
both sides to get higher price for
silver or the restoration of the preSi-
dental power is not new in politics,
but it is disheartening one. Many
of the adherents of the anti-devalu-
alton bloc justify their position on
the ground that the end justifies the
means This is what the New Deal
has been contending for several
years 1t is amazing to find con-
servatives adopting the same point
of view.
Whether the power to devalue the
dollar within the narrow limits of
SO cents to so cents is one that the
President should exercise or should
be placed In the hands of a national
monetary commission OF experts free
from political influence is not being
debated The issue instead is po-
litical. Many sincere opponents of
a flexible dollar insist that rigidity
helps trade and commerce. Just as
many argue the exact opposite.
Quick Action Important.
Certainly a glance at the many
complicated provisions Of the trade
agreements and treaties shows how
important it is for the Washington
Government to be able to meet cur
rency depreciation by overnight ac-
ton. When rigidity is established
and foreigners know that a con-
gressional committee has to act,
that hearings have to be held, that
perhaps a special session of Con-
gress has 20 be called in order to
meet trade changes relating to mon
etary exchange, there is an ad-
vantage with the foreign speculator.
1t has been argued that specu-
lation occurs even when the power
resides in the Presidents hands be-
cause rumors spread throughout the
world. But such rumors can be
squelched overnight by action or by
public statement. There is no way
to deal with rumors of what might
happen over period of weeks and
months if Congress has to act on
monetary problem relating to for
eign exchange. Had it not been
for the use-and, perhaps, uncon-
stitutional use-of an old wartime
power in 1888 when gold was i'm
pounded, there is no telling how
much money spectators might have
made if the usual procedure had
been followed.
World Not Ready for Stability.
To fix the dollars gold content at
q rigid point has many advantages
from the viewpoint of international
stability, but only when the world is
in a position to accept such rigidity
ii kOOu ldlIll. 4ONdy, 90 aAlNASSAe1A St
wars and threats of more wars are
on the horizon, there is little chance
for stability of currencies. Also,
foreign governments do not hesitate
now to do what they never used to
do in the 20's, namely, use the
foreign exchange device as means
of cutting tariffs or raising them, as
the case may be.
There is no doubt that stable
dollar is better than an unstable one,
that to remove the devaluation
power from the hands of the Presi-
dent or any one else and fix the
gold content at definite figure is
better than to leave it flexible. but
who can say that in an emergency
such as faces world trade and cur
rencies tday the United States
Government shall be placed in
straitjacket where it cannot act in
stantly to protect itself against raids
by foreign governments manipulat-
ing their currencies to benefit their
trade as against our own? This is
the real question at issue, and
majority Of both houses of Con-
gress have been ready in the last
"a hours to 60 along with the Presi-
dent-and only a minority of the
Senate, possessing parliamentary
powers of obstruction, has refused to
accede in matter affecting more
the international relations of the
country than dollar value, to the
Judgment of the President.