Will America Inflate?

Manawatu Times, Volume LIV, Issue 7268, 22 September 1933, Page 7

Will America Inflate?

President Gives Consideration To Problem

COMMODITY DOLLAR PLAN SUGGESTED

.United Press Association. —By Electric Telegraph —Copyright. Eoeoived Thursday, 7 p.m. WASHINGTON, Sopt. 21.

Amid the clamour for inflation, President Roosevelt to-day gavo consideration to the problem in a long talk with Dr. George Warren, of Cornell University, who was made a study of the European monetary situation for the President.

No official word came from the discussions, but the meeting revived reports that Dr. WaTren is working out plans for a commodity dollar, the buying power of which with relation to commodities ■would remain constant. In relation to gold it would rise and fall with the commodity price index. The Secretary of Agriculture, Mr. Henry Wallace, on Wednesday told the United States Grain Dealers' Association that he still favoured controlled inflation. At the same time ho criticised America's high tariff physchology, and warned his hearers that attempts to fix prices "without control of production wore doomed to failure,” adding "most price-fixers are also inflationists and, if the purchasing power of farm products does not improve within three months the price-fixers and inflationists will have the great power in Congress in tho coming winter, and there will be passed legislation which will mako the Agricultural Adjustment Act seem extraordinarily conservative.”

He concluded: "We are merely tiding over a difficult situation and, instead of retiring completely from tho world market, our people will soon come to their senses sufficiently to be willing to make rational adjustments in the tariff and eventually even in the policy of lending money abroad.”

Sterling' and Dollar Almost on Parity FORMER TOUCHES 4851, Received Thursday, 10.30 p.m. NEW YORK, Sept. 20. On the second anniversary of Britain's dropping the gold standard, today sterling came within a cent, of the gold standard parity dollar. Early in the day it was quoted at 485} cents., but later dropped, closing at 479} on a dollar rally. The gold value of the dollar again dropped to a new low level, to an indicated value of 63.71 cents, against the franc. The Stock Exchange failed to stimulate the falling dollar, which closed irregularly lower, this phenomenon considerably mystifying Wall. Street and the only explanation being that traders were taking more interest in other market factors and reported heavy exports of capital through the purchase of foreign commodities and other means.

Ready to Listen to Other People’s Views BTJT SILENT ON HIS OWN. WASHINGTON, Sept. 20. President Roosevelt announced on Wednesday that he -would receive the Southern delegation which is urging United States currency inflation. Meanwhile he maintains strict silence as to his own views on the subject.

Time Approaching Rapidly

DANGER WOULD ATTEND PREMATURE ANNOUNCEMENT.

WASHINGTON, Sopt. 20,

Senator Thomas asserted to-day that Roosevelt is gradually bringing about inflation of currency, but that he “would not even dare it.” The Senator added, “My opinion is that Roosevelt does not want to make ,a statement on inflation, because if he even hinted at it commodity prices would jump too fast and too high before the money is distributed among the people. “When all these codes are signed under the N.R.A. and millions of persons are returned to work, the President will be free openly to concede inflation. That time is now approaching rapidly.”

Diluting the Dollar

PROCESS BELIEVED TO BE INEVITABLE.

NEW YORK, Sept. 20,

The Evening Post’s Washington correspondent says that, while Roosevelt has been avoiding definite currency inflation moves, the opinion prevails in .Washington that partial devaluation of the gold value of the dollar to lower level than that which prevailed when the gold standard was dropped, i 6 inevitable when the United States again stabilize its currency.