SEEKING STABILITY

Ashburton Guardian, Volume 54, Issue 93, 30 January 1934, Page 5

SEEKING STABILITY

FORMAL NEGOTIATIONS. AMERICA APPROACHES BRITAIN. CURRENCY WAR FEARED. (United Press Association—Copyright) NEW YORK, aJnuary 28. The 'Washington correspondent of the "'New York Times" says that according to informed: isources President Roosevelt is expected to open formal negotiations with Britain soon for a modified stabilisation of the pound and the dollar as a natural sequel to the enactment of the Monetary Bill. There have already been semi-official negotiations, but the United States, according to reports, has been rebuffed.

The President is represented by informed quarters to be expecting quick results when the negotiations start.

The Administration's fiscal advisers are understood to feel that unless a currency war is prevented and foreign trade increased through the new gold policy, the Administration may have to face powerful • demands for currency inflation, therefore Mr Roosevele is expected to move at the proper time for stabilisation in the hope that the currencies of Britain and ' the United States may be held leyel, which would encourage international trade and be beneficial to both countries. It-is also stated that Mr Roosevelt feels it to be necessary to reduce the Hoover regime's tariff walls, in order to. promote trade revival. : . . Before undertaking the negotiations with Britain, Mr Roosevelt is; expected to permit a trial period to ■. intervene, when the Government will attempt to demonstrate that the stabilisation fund authorised. by. the Monetary Bill makes the United States capable of holding its own in the international currency contest.

MONEY BILL PASSED, FOR SIGNATURE TO-MORROW. (Received This Day, 1.30 p.m.) WASHINGTON, January 29. Without objections, • the. House of Representatives' accepted the Senate’s minor revisions to President Roosevelt’s. Monetary Bill. The measure will now go forward to White House, where the Executive signature is expected to-morrow, after which' the vait dollar stabilisation fund and other features of the Bill will become operative immediately. The repatriation of much of the capital which has fled from the country during months of , monetary uncertainty, is causing some concern iin Treasury circle*. It is felt that it will have the effect of forcing the dollar upward contrary to the Administation’s wishes to keep it at least below 60. It may be necessary for the Treasury to start immediately selling great quantities of dollars to maintain the desired depreciation. EVILS OF INFLATION. WHAT FOREIGNERS GAN DO. WASHINGTON, January 28.' The'Foreign Policy Association’s report on the Administration’s gold policy warns Americans that attempts to cheapen the dollar will involve the danger of a currency warfare, "involving all the evils of uncontrolled inflation.” The report cited three retaliatory measures which foreign countries might apply against the United States, including the imposition of fi surtax equal to the differential between the current exchange rates and the par value of the depreciated currency, various forms of quantitative trade regulation, and competitive currency depreciation. _ , ,

SILVER CURRENCY. ;, WIDER USE DEMANDED. .. WASHINGTON, January 28. j The United Press states that Congressional leaders predict that a new proclamation from the White House ' will soon appease the growing demands for the wider use of silver currency. Senator Wheeler declared that if President Roosevelt would no nothing, ho would introduce another Silver Bill. The leaders based their forecast that Mr Roosevelt would issue a silver proclamation on the close vote on the silver amendment to the Money Bill. Some of them predicted that the White House would probably proclaim the nationalisation of silver which was recommended to Mr Roosevelt by the Committee for the Nation and other monetary reform organisations.

ALL MARKETS RISE. HIGH LEVELS REACHED. _•?' (Received This' tyy, .1.50 p.m.) NEW YORK, January 29. AH markets went sharply up to-day on the completion of the Monetary Bill and further evidence of business improvement. The dollar is slightly weaker. Stocks advanced one to four points, a number of issues reaching 1933-34 high levels. All • commodities gained, wheat going up by 22 cents, "cotton one dollar a bale,' and 1 silver one cent an ounce.