Evening star., 1949-09-15
US. Opposes Increase
In Gold Price, Snyder
Informs World Fund
By the Assoeiofed Press

BY the Assoeiofed Press
Secretary of the Treasury
Snyder has notified the. Interna-
tional Monetary Fund that the
United States will not agree to
q boost in the price of gold.
His declaration indicates that
this country will. if necessary, use
its veto power to kill any general
increase which might be favored
by the Board of Directors of the
48-nation fund.
Mr.. Snyder made his statement
at a closed meeting of the funds
committee on gold. 1t helped to
quash-for the moment-a South
African proposal for a fund study
of a new. higher price. 1t is now
$35 an ounce.
Issue to Be Raised Again.
But the Union of South Africa
worlds biggest gold producer
plainly had plans to raise the issue
again before the annual COVER
nors' meeting of the fund and
the World Bank ends tomorrow
night.
And it became clear that the
lines were drawn for a major as
sault-prolonged if need be
against the gold-price policy of
the United States, the worlds
major buyer.
Meanwhile the delegates here in
annual meeting:
i. Prepared to vote to India
the Craftsmanship of the fund and
bank for the next year. The elec-
ton is tomorrow but the outcome
was taken for granted. Some be-
neved that India would select Sir
Chintaman Deshmukh, it's COVER
nor for the fund, to receive the
honor.
2. Considered whether to hold
next years meeting in Paris.
France would have had the meet
ing this year had not economy
and convenience dictated other
wise.
8. Put q fund committee to
work considering ways to break
down the currency controls which
hamper trade in most of the
world. The fund has reported no
general trend" toward improve
ment in the last year.
4. Heard that Sir Stafford
Cripps. British governor for both
fund and bank, may leave Wash
ington for home early Friday, be-
fore the conference ends.
No Change in British Stand.
If so, his departure would leave
less chance than ever that the
British. heavily pressed to lead
devaluation Of currencies among
the deficit countries" might
make any statement on the issue.
However, one British official said
there is mo change of any kind"
IN Sir Stafford's familiar stand
that there is no plan to devalue,
despite American arguments that
this Is the only prompt way to
build up England's ollar-earning
exports.
The battle over gold was as hot
ss It was unexpected. His face
still elouded with anger, N. C.
Havenga, head Of the South Afri-
can delegation. told reporter
after the joust that the issue will
come again before the delegates.
Then, he said, ''it will be an
ether matter"
Some of those present said Mr..
Havenga first urged that the COM
mittee on gold recommend his
proposal for letting so per cent of
new gold be sold free of ceiling
price.
Mr.. Snyder declared the United
States to be opposed. But he said
this country would not object to
the question being sent to the
funds Board of Directors for
study.
Mr.. Havenga replied that if
board study were involved, the
issue should cover more than his
10 per cent plan. That was
merely a compromise, or "sec-
ondary" proposal, he said; the
real need is for a fiat increase in
the recognized price of gold.~
Plan Would Mean DevaIuation.
This, in effect, would be a
devaluation of all the worlds cur
rencies in terms of gold, including
the United States dollar. Con-
siderable sympathy exists among
fund members for such a move,
since it would help many coun-
tries to reduce their balance-of- :
payments deficits.
The Philippines and Australia,
both gold producers, declared sup
port for Mr.. Havenga. Britain, al
thought she would stand to gain
from the proposal, repeatedly did
not back it.
But Mr.. Snyder's ultimatum
elinched the issue. 1t became ap-
parent that the committee would
= reject the broad study if it came
to q vote. Actually, it had not
even reached the form of a mo-
ton.
Mr.. Havenga, taking counsel
with others, decided to withdraw
his so per cent motion. And that
ended 1.-THE committee had
nothing more before it to consider.
The South African refused fiat
ly to discuss his future strategy
with reporters. Nevertheless, it
was apparent that his withdrawal
left him free to fight another
day.
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