DOLLAR AND POUND

Evening Star, Issue 21632, 30 January 1934, Page 9

DOLLAR AND POUND

QUESTION OF STABILISATION PRESIDENT ROOSEVELT'S HOPES Press Association—By Telegraph—Copyright, "NEW YORK, January 28. The Washington correspondent of the 1 New York Times ’ says: “ According to informed sources President Roosevelt is expected to open formal negotiations with Britain soon for modified stabilisation of the pound and the dollar as a natural sequel to the enactment of tho Monetary Bill. There have been semi-official negotiations, but it is reported that the United States was 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 a new gold policy, the Administration may face powerful demands for currency inflation. Therefore President Roosevelt is expected to move at tho proper time for stabilisation in the hope that the currencies of Britain and the United States may be held level, which would encourage international trade and be beneficial to both countries. It is also stated that President Roosevelt feels it •to be necessary to reduce the Hoover regime’s tariff walls in order to promote a trade revival. * Before undertaking negotiations with Britain, President 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 an international currency contest.

CURRENCY WARFARE DANGERS -INVOLVED. WASHINGTON, January 23. The Foreign Policy Association’s report on the Administration’s gold policy warned Americans that attempts to cheapen the dollar involved the danger of currency warfare, “ involving all the evils of uncontrolled inflation.” The report cited three retaliatory measures that foreign countries might apply against the United States, including the imposition of a surtax equal to the differential between current exchange rates and the par value of depreciated currency, various forms of quantitative trade regulation, and competitive currency depreciation.

THE SILVER PROBLEM WASHINGTON, January 28. The United Press Association states that congressional leaders predicted a new White House proclamation soon to appease the growing demands for a wider use of silver currency. Senator Wheeler declared that if President Roosevelt would do nothing he would introduce another Silver Bill.