Roosevelt’s Adviser Brings Nothing New

Horowhenua Chronicle, 24 June 1933, Page 7

Roosevelt’s Adviser Brings Nothing New

DANGERS OF UNCONTROLLED INFLATION Received Friday, 9.5 p.m. LONDON, June 23. The Times’ Washington correspondent who- is attending the Conference, says according to the American delegation Professor Moley brings no new instructions and possesses no authority for favourably modifying any phase of the negotiations. If he brings anything it may be a reasonably reliable calculation of the time that will elapse before President Roosevelt is ready to “stabilise” conditions on the domestic tnarlfAtftThe Times, in a leader regretting President Roosevelt’s refusal to agree to the currency truce, emphasises that

it was hoped he had objected merely to the terms of the arrangement and did not oppose the principle of keeping the dollar stable while permanent stabilisation was being discussed. The abandonment of that hope may be very disconcerting. Any great depreciation of the dollar in sterling or francs unless balanced at least by a corresponding rise in dollar prices is Tikely to depress prices below their present disastrous levels and might force other countries to adopt protective steps similar to those when Britain abandoned the gold standard, thus creating an atmosphere unfavourable to the Conference. Nevertheless it may be taken that President Roosevelt understands the danger of uncon-’ trolled inflation and will be prepared to call a halt when American prices’ are restored .to a tolerable /level, perhaps comparatively quickly. The Times’ city editor says if President Roosevelt succeeds in raising prices generally the world will benefit, but inasmuch as no case is recorded wherein a depreciated currency has succeeded in raising world prices as distinct from domestic prices the city editor believes the experiment will be attended by grave risks. There would be less anxiety if the world were confident that President Roosevelt will be able to stabilise the dollar when it reaches a certain point, but it is feared that political opinion will later be as strongly opposed to stabilisation as it is to-day because it will involve the cessation of inflation and check the local rise in prices. It is also argued that once inflation stops, deflation automatically begins owing to the withdrawal of the impetus of fresh purchasing power. Deliberate Economic Isolation LONDON, June 22. The News-Chronicle’s special representative declares that President Roose.velt’s dismissal of 80 per cent, of the commercial attaches at the American Embassies and Consulates and the closing of eight commercial offices in Europe is the first deliberate step towards a policy of economic isolation. It destroys the American overseas trade service, built with infinite care under Mr. Hoover’s direction, and recognised as the world's most efficient business getter. It is estimated that it brought at least fifty million dollars direct trade to America.