AMERICA’S PERPLEXITIES

Evening Star, Issue 21523, 22 September 1933, Page 9

AMERICA’S PERPLEXITIES

FLIGHT FROM THE DOLLAR . WALL STREET ANXIOUS Press Association—By Telegraph—Copyright NEW YORK, September 20. On the second anniversary of Britain’s dropping of the gold standard, to-day sterling came within one cent of gold standard parity, The dollar early in the day was quoted at 4.85}, but later dropped, closing at 4.79}. The gold value of the dollar again dropped to a new low level to an indicated value of 63.71 against the franc. The price of gold has been fixed at 32.28 dollars an ounce. The Stock Exchange failed to stimulate the falling dollar, which closed irregularly lower. This phenomenon is considerably mystifying Wall Street, the only explanation being that traders are taking more interest in other market factors and the reported heavy exports of capital through the purchase of foreign commodities and other means. THE RETAILERS’ CODE NEW YORK, September 20. The chief National Recovery Act development at Washington was the submission of the retailers’ code for public consideration. Price fixing and control features were included, and immediately produced the anticipated storm of protests. It is expected that final action will be deferred for at least a week. IMPORT DANGERS NEW YORK, September 20. Disturbed over reports that imports of chekply-made foreign goods are threatening to disrupt the National Recovery Act programme, administration officials have drafted a plan by which President Roosevelt can arbitrarily impose extra fees, in addition to the regular import duties. Furthermore, he could completely exclude such goods as he considers necessary, A COMMODITY DOLLAR WASHINGTON, September 20. Amid the clamour for inflation President Roosevelt to-day gave consideration to the problem in a long talk with Dr George Warren, of Cornell University, who has made a study of the European monetary situation for the President. No official word came from the discussions, but the meeting revived reports that Dr Warren is working out plans for a commodity dollar, the buying power of which with relation to commodities would remain constant in relation to gold. It would rise and fall with the commodity price index. " MUDDLING THROUGH ” U.S. AND NATIONAL RECOVERY PORT HOPE (Out.), September 13. A frank picture of the United States muddling through without quite knowing where the path would lead from day to day was drawn at the International Liberal Conference by Mr Averell Harriman, a scion of a United States family famed in the realm- of “ big business.” He is chairman of the Union Pacific Railway, but at present is serving as president of the New York State Emergency Committee under the National Industrial Recovery Act. He humorously described himself as “in charge of ballyhoo.” Much of his speech consisted of good-natured refutation of the current belief about planned economy in the ■ United States without being in the least disloyal to Mr Roosevelt and the cause of national recovery, but rather affirming an honset belief that the President’s greab effort would be crowned with success. “ The publicity,’’ he said, “ is planned to marshal national confidence under the banner of the_ Blue Eagle, and the nation is marching forward to the slogan I We do our part.’ That slogan is posted over tho hot dog stand and the beer vendor’s counter as well as on the window of the religious book store and the i ail way station entrance. “ The magic letters ‘ N.R.A.’ are supposed to inspire a belief that American organising genius is producing a finished plan for orderly emergence into a new era of prosperity. Something of this sort must come, too, or the alternative may mean the end of Capitalism in the United States.” But the speaker made it abundantly plain that much of the so-called planning would appear to be after-thoughts in an effort to keep pace with the march of events. “ Action has come first,” he said, “ and dogma has followed.”