CURRENCY BALANCE

Northern Advocate, 19 April 1933, Page 5

CURRENCY BALANCE

ROOSEVELT SCHEME MULTILATERAL TREATY. bimetallism BASTS. WHEELER BILL REJECTED

(United Press Association —By Electric Telegraph.—Copyright.) (Received !) a.m.) NEW YORK, April 17. The Washington correspondent of the “New York Times’* says the outstanding reason for the refusal of the Senate today to adopt Mr Whcc-, lor’s Iti-to-l silver ratio to gold amendment, which was a direct inflationary proposal, apparently was an authoritative rumour that President Roosevelt will seek to negotiate a multilateral treaty with Britain, France, Germany, Italy and Japan for an international currency agreement on file basis of bimetallism. It is further hinted that the plan will be taken up with Mr MacDonald before this week is ended. The purpose of such a treaty, of course, would be to prevent the fluctuation of international exchange. Its consummation would mean an extensive international campaign of silver purchases Avhieh would result as desired by Mr Wheeler’s partisans. No details of the plan have been revealed, but it is understood that the President’s financial advisers' have been labouring over it for; weeks and that it has been the ’ siib-'i jeet of conversations between the Secretary of State, Mr Cordell Hull,’ and the British Ambassador, Sir Ronald Lindsay. The only other development in the; international situation, says the correspondent, is the refusal of White. House and the State Department to, comment on press reports to the effect that M. Herriot (France) will seek a lump sum payment basis for a debt agreement. The unofficial policy of the Government, according to authoritative, sources, is N to favour sincere consideration of any debt programme submitted, but to continue to adhere to the contention that other economic questions 'should not bo subordinated to debt.

SOME KIND OF INFLATION.

MR RAINEY EMPHATIC

STERLING VALUE GOES UP,

(Received 10 a.m.) WASHINGTON,. April 18

President Roosevelt today took ov?r the problem presented by -Congressional sentiment for currency inflation, while on Capitol Hill the Democrat. leadership showed evidence of expectation of an Administration plan, looking towards the swift combating of deflation. “We are going to have some kind of inflation,” said Mr 11. T. Rainey, the Speaker of the House of Representatives. “White House is studying it, but what form it will take 1 do not know. ”

He added: “The Administration’ wants to submit its own plan for inflation to Congress. That is the reason the Democratic leadership desires tty tighten the House rules, so as to pro-, vent other measures being brought toil the vote.” Talk of currency inflation legislation; raised British currencies at New York today. At noon the pound sterling reached 8 dollars 49.1 cents in United States funds, 31 cents higher than Monday’s closing.- The Canadian dollar ad-, vanced 3-Kith cents to S 3 15-16 cents.

PASSAGE PREDICTED. 7 THOMAS AMENDMENT DROPPED PRESIDENT’S OPPOSITION.

(Received 11 a.m.) WASHINGTON, April 18

The passage of a currency inflation bill this session was predicted today •by Mr Rainey at the Press Conference. Senator Thomas (Democrat, Ala* bam a) today withdrew his proposed inflation amendment to the Administra • lion Farm Relief Bill, giving' no explanation, but announcing that he reserved the right to re-offer it. Mr Thomas' amendment would have given President Roosevelt authority to use any of the several methods aimed at expanding currency, remonetizing silver, or reducing the gold content of the dollar. It was to have been the second attempt f of the inflationists following the defeat on Monday by 43 to 33 of a proposal for free coinage silver at .a ratio of 10 to 1 with gold.. De-spite-the setback, the inflationists are cheered by, their gain in strength over January's test. The Democratic leaders are anxious to see the Administration Farm Relief programme to which inflationary moves are being offered as amendments in the hope for a final vote on the farm programme by Wednesday night.

Word from White House that President Roosevelt is opposed to making inflation part of the farm programme is held by many as a decisive factor in defeating the silver amendment.