CONFUSED SITUATION

Evening Star, Issue 21638, 6 February 1934, Page 9

CONFUSED SITUATION

ROOSEVELT MONETARY POLICY DISAPPOINTING REACTION Press Association—By Telegraph—Copyright. LONDON, February 5. ‘ The Times ’ says: “ So far the effect of President Roosevelt’s policy is the opposite of what was intended. Washington hoped that the,fixing of the gold value of the dollar at a lower point than the existing exchange rate would cheapen the dollar in terms of other currencies, but instead the dollar has risen slightly in relation to the franc and considerably in relation to sterling. The buying of gold currencies in order to exchange gold for shipment to New York is likely to continue until internal prices rise in America, reducing the purchasing power of the dollar to the • level of the new gold content. The present situation is abnormal and confusing, and must impose an increasing strain on the franc. The deflation of the franc is certainly not helpful towards world recovery.” STABILISATION DANGERS DETROIT, February 4. Father Coughlin, in one of his weekly broadcasts to the nation, to-day declared that, because of the difference between the British and the Australian pound, 11 we dare not stabilise the American dollar with the British pound. ■ If this is done we can hang ‘ For Sale ’ signs on American farms and give them to Australian farmers.” ECONOMISTS PERTURBED NEW YORK, February 4. Viewing the N.R.A, as “ humanitarian,” eleven noted economists, members of the Commission on Economic Reconstruction, to-day issued a warning that nevertheless it contained certain dangerous economic fallacies. The outstanding danger appeared to be that N.R.A. code, powers would be used for competitive limitation of output “ at ’ the expense of present and future national welfare.” They recommended a world , bank, which should issue inter- : national currency. • Pending that, they suggested that the Federal reserve be linked to the Basle Bank for Interna- • tional Settlements. They also advocated the levelling of tariff barriers and a rise in the world price level.