NATIONAL RECOVERY

Northern Advocate, 6 February 1934, Page 7

NATIONAL RECOVERY

HUMANITARIAN ACT DANGEROUS FALLACIES. ECONOMISTS’ OPINIONS. (United Pres? Association—Er Uflectrl# Telegraph—Copyright.) j (Received 9.0 a.m.) I NEW YORK, February 4. Expressing the view tha the National Recovery Act is humanitarian, the 11 noted economists who are the members of the Commission on Economic Reconstruction to-day issued a warning that nevertheless it contains certain dangerous economic fallacies. An outstanding danger is seen in the fact that under the N.R.A. codes, powers will be used for the competitive limitation of output ‘at the expense of the present and future national welfare.” Also, it is recommended that, a world bank should be created which would issue international currency. Until then, it is suggested, the, Federal Reserve Bank should be linked to the Bank of International Settlement. The economists also advocated a levelling of tariff barriers. DOLLAR DEVALUATION. ABNORMAL SITUATION. INCREASED STRAIN ON FRANC. LONDON, February 5. “The Times” says that so far the effect of President Roosevelt’s policy is the opposite of what he intended. He hoped that the fixing of the gold value of the dollar at a lower point than the existing exchange rates would cheapen the dollar in terms of other currencies. Instead, the dollar has risen slightly in relation to the franc, and considerably in relation to sterling. The buying of gold currencies in order to exchange them for gold for shipment to New York is likely to continue until internal prices rise. America is reducing the purchasing power of the dollar to the level of its gold content. The present situation is abnormal and confusing, and must impose an increasing strain on the franc. The deflation of the franc certainly would not be helpful to world recovery. GOLD STOCKS INCREASING. FRENCH FRANC DROPS. DOLLAR RELATIVELY STEADY. (Received 1.40 p.m.) NEW YORK,, February A The French franc cracked sharply today under pressure of the heavy international movement of capital which has continued since the revaluation of the dollar. Funds- working from Paris, together with a further flow of capital from London and other* foreign centres, continued to move partly into American securities. A total of 4,040,000 shares was traded on the Stock Exchange, the activity being the greatest since last July. The franc dropped nearly half a cent. The dollar, however, remained relatively steady against sterling; The Government’s gold stock at Washington was increased by .1,500,000 dollars today to 7,000,0.10,000,000, This presumably was due to gold being returned from hoarding and to Treasury purchasers. Demonstrating President Roosevelt’s complete control of 'Congress, the House today passed his 050,000,000dollar Civil Works Administration Relief Bill under the suspension rules, with only a single dissenting vote. The dollar closed at 107.0 in terms of the franc. Sterling quotation is 4.91 U unchanged; ami the franc 0.161, a drop of 161 points. “FOR SALE” A SOCIALISTIC TRUCE . (Received 9 a.m.) DETROIT, February 4. Father Charles Coughlin, the Roman Catholic priest whose Socialistic wireless broadcasts in the past few years have gained him a wide following, in the course of his weekly broadcast today, said: “Because of the difference between the British and the Australian pound we dare not stabilise the American dollar with the British pound. If this is done we can hang ‘For Sale’ signs on American farms, and give them to Australian farmers.”