MONETARY PROBLEM

Manawatu Standard, Volume LIII, Issue 313, 1 December 1933, Page 8

MONETARY PROBLEM

3.15 P.M. EDITION

SILVER REMONETISATION SUGGESTED. BRITISH CO-OPERATION DISCOURAGED. (United Press Association —By Electric Telegraph—Copyright.) Received December i, 1.15 p.m. WASHINGTON, Nov. 30. Senator Borah again entered the monetary controversy to-day when he sharply answered Mr Warbury’s suggestion that the United States might co-operate with Britain in reinstituting a modernised and revised gold standard. He pointed out that British and American world trade interests were so conflicting that “the possibility, to say nothing of the desirability, of such a conjunctive action with Britain is so remote at this time, as I see it, that it removes any proposal based upon that fact beyond the realm of practical consideration or discussion.” Senator Borah chides Mr Warbury s failure to mention silver as a possible monetary base and suggests that the Reconstruction Finance Corporation purchase silver as it does gold until it brings the price to 75 cents an ounce and then have the dollar to consist ol an ounce of silver and 25 cents’ worth of gold at the prevailing price. This statement greatly encouraged the silver advocates in Congress today, who are now confident that it will’pass some sort of legislation to remonetise silver. / “INDIARUBBER DOLLAR.” PHRASE CONDEMNED. Received December 1, 2.5 p.m. LONDON, Nov. 30. “I believe there is sadness ahead of those selling the United States short,” said Senator W. Bingham, in emphasising his confidence in the success of the Recovery Movement at a thanksgiving dinner. He condemned the phrase “indiarubber dollar”,and added that he did not expect uncontrolled inflation. Recently the dollar had bean devaluated to the same extent as the pound in 1931 and he hoped and believed it would similarly benefit the United States.