CRISIS AT CONFERENCE

Greymouth Evening Star, 30 June 1933, Page 7

CRISIS AT CONFERENCE

CURRENCY STABILISATION U.S.A. v. THE REST [BY CABLE —PRESS ASSN. —COPYRIGHT.] LONDON, June 29. The slump in the dollar dominated to-day’s activities of the Conference. A tense atmosphere prevailed. It is ‘felt that the critical stage has been reached, and serious consequences may follow a further delay in reaching an agreement on the currency issue. Gold countries fear that the fall in the dollar will cause a fall in the pound, adversely affecting their trade, possibly driving them off gold. They are pressing Mr MacDonald for an early decision regarding the stabilisation of the pound. t It, is understood that M. Bonnet (France) announced that if the currency agreement is not soon reached, he will seek an adjournment of the Conferen'ce, on the ground it is useless to continue. Mr MacDonald met Senators Hull and Cox, this morning, after which the latter cabled to Mr Roosevelt enquiring his present attitude regarding stabilisation.

A message states that J. Hayden, a leading Washington, journalist says Mr Hull sent a long message to Mr Roosovelt outlining the insistent Continental views that America should agree to temporary stabilisation. France, Holland, Belgium and Switzerland are in a virtual state of revolt, and it would not be surprising if they withdraw from the Conference failing an improvement in the exchange situation, thus saddling America with the responsibility of the failure of the Conference. The British and French have requested the Federal Reserve Bank to join the European Central Banks in stopping speculation in exchange.

SEMI-OFFICIAL ADMISSION. [BRITISH OFFICIAL WIRELESS.] RUGBY, June 29. While many of the committees dealing with specific questions before the World Economic Conference ’ met in private to-day, to continue their work, major interest was taken in currency problems, of which, in the opinion of many delegates, a. solution has to be found, if the hopes entertained of the Conference are to approach fulfilment. Many private conversations were held regarding terms, of which the closest secrecy was maintained by th© participants. Discussions took place between the delegates of France, Italy, Belgium, Switzerland, and Holland, which are gold countries, and Mr Ramsay MacDonald, Mr Neville Chamberlain and Treasury experts. ~ ’ The question of limitation of currency fluctuations was also discussed in the drafting sub-committee, ap-< pointed by the Financial Sub-commis-sion on the basis of the memorandum submitted by the United Kingdom delegation. SALES OF THE DOLLAR. LONDON, June 29. The “Daily Telegraph’s” Financial Editor says: “Lack of confidence in the dollar has extended to America. Hence there has been considerable selling of dollars here. So far, no official check has been put on the decline. The deterioration of the dollar may proceed rapidly. The United States can stop this movement at any time by announcing a stabilisation level. It must, therefore, be assumed that, events are marching according to plan. In the meantime, the Bank of England has agreed to hold 1 the franc. Tho Bank of France will collaborate in supporting the guilder as long as France and Holland permit gold exports. This is a normal proceeding. Currency commodity prices are now dominating stock exchange movements.

The “Daily Express” says: “Bankers are again, conferring in London on Friday in another effort at making a secure stabilisation. America’s recent objective was 4 dollars 30 cents to one pound. Her objective is stated now to be 4 dollars 65 cents to £l. NO OFFICIAL ACTION. (Recd. June 30, 10 a.m.) WASHINGTON, June 29. Dean Acheson, Under-secretary to the Treasury, told reporters to-day that no action was being considered in Washington regarding the stabilisation of the dollar. Nothing had been done in this respect since Mr Roosevelt. rejected the temporary stabilisation proposal forwarded from the the London Conference some days ago. PROFESSOR MOLEY BUSY LONDON, June 29. There was a. meeting of the Conference Bureau this evening, from which much was expected, but it brought no disclosures beyond a statement that the Bureau had agreed that the conclusions of the Economic Commission will be subject to the realisation of an agreement on monetary stabilisation. This condition was imposed by the speakers during the debates. M. Avenol reported on the present position regarding the questions discussed. Mr Ramsay MacDonald said he thought that the Bureau would agree that appreciable progress had been made. The meeting lasted for only forty minutes, and it was strictly private.

Professor Moley had a long, busy day. He held many conversations with the American delegation and in the afternoon he again met the British Ministers to resume the talks started' on the previous day. The “Daily Telegraph’s” special correspondent, says: “it is gathered that President Roosevelt is prepared to accept the advice of Professor Moley as to whether there should be temporary dollar stabilisation or not. This question will be decided during Professor Moley’s visit.” FRANCO-AMERICAN ATTITUDES LONDON, Juno 29. The efforts of France and other gold countries to secure, at least the moral British support of their position have not yet materialised. It is understood that gold countries desired Mr MacDonald to declare that Britain would view witli regret any further depreciation of national currencies. Britain, however, is reluctant to take sides, and prefers to act as mediator between the two extreme currency groups. British delegates are, still striving

to persuade the Americans that early de facto stabilisation is needed to give the Conference a chance of success, but the Americans are adamant. Most of the delegates believe the dollar will soon reach 450, or even over parity. NO STANDARD OF VALUE. (Received June 30, 8 a.m.) NEW YORK, June 29. The sensational market rises of the past few days suffered a reversal today, as heavy profit-taking among commodity speculators counteracted further cheapening of the dollar against foreign currencies. Sterling touched 4.43 X, the highest since England abandoned gold in October, 1931, and closed at 4.371. Measured by the French gold franc, the dollar is worth but. 76.34 cents. It ’is reported that France and her allies are likely soon to abandon gold. This, with the possible dropping of the standard by other gold countries, aroused speculation in financial circles, with the possibility of the unprecedented situation of no country in the world being on gold, and thus with no standard measure of value, with an undoubted disturbing effect on world trade and external investments of the various countries. FRENCH FEAR PANIC. LONDON, June 29. The slide of the dollar continues to cast, a, shadow on the Conference. There is a revival of the story that the gold countries demand Mr. MacDonald should agree to some measure of temporary stabilisation. Indeed, French circles sense that condition of international psychology which forebodes panic, and think it. all too bad that gold is pouring into England for sanctuary, and to the disturbance of the world equilibrium. MARKS OF ORIGIN. LONDON. June 29. Mr Masters (N.Z.) in the Marks of Origin Sub-committee countered the arguments of the German, Belgium and Czecho-Slovakian delegations. He said that doubtless the marks _of origin in some cases were unfairly used, and obstructed trade, but the removal of the whole system of marking the country of origin would be a retrograde step. Properly used, the marks give the buyer the information he is properly entitled to. New Zealand was anxious that the origin of its goods be fairly indicated.