AMERICAN MOVE

Auckland Star, Volume LXV, Issue 25, 30 January 1934, Page 7

AMERICAN MOVE

A STABLE CURRENCY

ACT WITH BRITAIN.

Negotiations Predicted to Start Soon.

SEQUEL TO MONEY BILL,

(United P.A.—Electric Telegraph—Copyright) (Received 1.30 p.m.) NEW YORK, January 29. The Washington correspondent of the "New York Times" states that President Roosevelt, according to well-informed sources, is expected to open formal negotiations with Great Britain shortly for a modified stabilisation of the pound and dollar as a natural sequel to the enactment of the Monetary Bill.

There have been semi-official negotiations, but the United States, it is reported, has been rebuffed. The President is represented in informed quarters to be expecting quick results when the negotiations start.

The Administration's fiscal advisers, it is understood, feel that unless a currency war is prevented and foreign trade increased through the new gold policy, the Administration may face powerful demands for currency inflation. Therefore Mr. Roosevelt is expected to move at the proper time for stabilisation in the hope that Britain's and the United States' currencies may be held at a level which will encourage international trade beneficial to both countries.

Mr. Roosevelt is also reported to feel it to be necessary to reduce the Hoover regime's tariff walls in order to promote a trade revival before undertaking negotiations with Britain. Mr. Roosevelt is "expected to permit a trial period to intervene during which the Government will attempt to demonstrate that the stabilisation fund authorised by the Monetary Bill makes the United States capable of holding her own in the international currency contest.

Money Bill for Signature. Without objections the House of Representatives accepted the Senate's minor revisions on President Roosevelt's Monetary Bill. The measure now goes to the White House, where the executive signature is expected to' be given it tomorrow.

The vast dollar stabilisation fund and the other features of the bill will thereupon become operative, causing the immediate repatriation of much of the capital which fled from the country during the months of monetary uncertainty, causing some concern in Treasury circles.

It is felt that the bill will have the effect of forcing the dollar upward, contrary to the Administration'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 desire for depreciation.

All markets turned sharply upwards to-day at New York on the completion of the Monetary Bill and further evidence-- of business improvement. The dollar was slightly weaker. Stocks advanced from one to four points, a number of issues reaching the high levels of 1933-34. All commodities gained, wheat being up 2| cents, cotton a dollar a bale and silver a cent an ounce.

The Foreign Policy Association, in a report on the Administration's gold policy, warns Americans that attempts to cheapen the dollar involve a danger of currency warfare, "including all the evils of uncontrolled inflation."

The association cites three retaliatory measures which foreign countries might apply against the United States —the imposition of a surtax equal to the differential between current exchange rates and par value of the depreciated dollar, various forms of quantitative trade regulation, and competitive currency depreciation.

"CONGRESS ROARS."

BUT YIELDS TO ROOSEVELT

WASHINGTON, January 24,

"Congress roars, yet votes 360 to 40 as though all the President had asked was, 'May I have a match V " says William Randolph Hearst in an editorial in his chain of newspapers, referring to the approval given by the House of Representatives to Mr. Roosevelt's monetary stabilisation bill.

"Wherever we may be going, we are moving in a hurry," says Mr. Hearst.

"We left the gold standard when we got to the point where we could not collect and could not foreclose," said Professor Warren, a member of President Roosevelt's "brain trust," giving evidence before the financial Senate committee. He did not exhibit any tendencies in favour of inflation.

KIDNAP HEIRESS.

MYSTERY 'PHONE CALLS.

NEW YORK, January 24

Mysterious messages in some foreign tongue, believed to be threats to kidnap Miss Dorothy Duke, heiress to her late father's tobacco millions, have caused police guards at her home to be doubled. Later, "however, high officials sheepishly confessed that their translations were faultv.

It transpired that a friendly gentleman in Ski])io, Yugoslavia, had written congratulating the young lady on coming into the first of her inheritance, and expressing sorrow that she should be in fear of kidnappers. The extra guards have been withdrawn.