STERLING AND DOLLAR

Ashburton Guardian, Volume 53, Issue 211, 19 June 1933, Page 5

STERLING AND DOLLAR

STABILISATION NOT WELCOME. OPINION IN UNITED STATES(United -Press Association —Copyright). . NEW YORK, June 17. The. Washington correspondent of the "New York Times" states that the Treasury Department revealed of-x '• fieially /to-day that- the* proposals for fcuiTency stabilisation which have been ■ ' submitted to President Roosevelt from the World Economic Conference are not agreeable to the American Government. The American delegates have been instructed -within what fixed limits, they may act, but no. specifio point of stab- . ilisation between the '£ and the dollar has been designated, although it has •been made clear here that the Government does not propose to enter into any temporary or' permanent agreement calculated to give foreign countries the economic advantage of deflated currencies. A. Treasury official stated that the United States should not be placed in the position of closing the door to stabilisation, and. added: "Everybody real, ises the importance of such action." In the-opinion of observers the President's coolness concerning early stabilisation of currencies is attributed to the importance with which he regards 'the present tangible improvement in domestic prices. He does not wish to risk a setback until other phases of the conference which might give the nation a corresponding advantage, such as the lowering of trade barriers, have been discussed. Both President. Roosevelt and Mr W. H. Woodin (Secretary of the Treasury) are represented as having "strong views" on the stabilisation, negotiations with indications that the policy of the administration concerning the conference would be rigidly controlled from Washington. In view of the extensive stabilisation discussions, English and. American experts have had since the time of Mr Ramsay MacDonald's visit, the following part of the Treasury's announcement is regarded with unusual interest in diplomatic circles: The whole stabilisation discussion in London is not one which, this Government initiated. Wo are willing to listen, but do not wish to ba placed in the ' position of trying to reach a deal. That is, no counter-proposal will be made.