Roosevelt's Adviser Brings Nothing New

Manawatu Times, Volume LIV, Issue 7191, 24 June 1933, Page 7

Roosevelt's Adviser Brings Nothing New

DANGERS OF UNCONTROLLED INFLATION Received Friday, 9.5 p.m. LONDON, Juno 23. The Times’ Washington correspondent who is attending the Conference, says according to tho American delegation Professor Moley brings no new instructions aud possesses no authority for favourably modifying any phase of tho negotiatious. If ho brings anything it may bo a reasonably reiiabio calculation of the time that will olapsc before President Roosevelt is ready to “stabilise” conditions on the domestic markets. Tho Times, in a leader xegrotting President Roosevelt’s refusal to agree to the currency truce, emphasises that it was hoped he had objected merely to tho terms of tho arrangement and did not oppose the principle of keeping the dollar stable while permanent stabilisation was being discussed. The abandonment of that hope may bo very disconcerting. Any great depreciation of the dollar in sterling or francs unless balanced at least by a corresponding rise in dollar prices is likely to depress prices below their present disastrous levels aud 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 bo taken that President Roosevelt understands tho danger of uncontrolled inflation and will be propared to call a halt when American prices aro restored to a tolerable level, perhaps comparatively quickly. Tho Times’ city editor says if Presldcut Roosevelt succeeds in raising prices generally the world will benefit, but inasmuch as no caso is recorded wherein a depreciated currency has succeeded in raising world prices as distinct from domestic prices tho . city editor believes the experiment will be attended by grave risks. Thero would be less anxiety if tho world wero confident that President Roosevelt will be able to stabilise tho dollar vvhen 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, Juno 22. Tho Ncws-Chroniclc’s special representative declares that President Roosevelt’s dismissal of SO per cent, of tho commercial attaches at tho American Embassies and Consulates and the closing of eight commercial offices in Europe is tho first deliberate step towards a policy of economic isolation. It destroys tho American overseas trade service, built with infinito 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.