CURRENCY PROBLEM

New Zealand Herald, Volume LXX, Issue 21470, 19 April 1933, Page 11

CURRENCY PROBLEM

AMERICAN TOLICY INFLATION ADVOCATES REMONETISATION OF SILVER SUBJECT FOR CONFERENCE By Telegraph—Press Association—Copyright (Received April 18, 5.5 p.m.) NEW YORK. April 17 A message from Washington states that Mr. B. K. Wheeler (Democrat, Montana), brought up the matter of the pending Workl Economic Conference in the Senate to-day during a debate on inflation. Mr. Wheeler said ho did not believe Britain would agree to remonetiso silver because she had a trade advantage over America and wanted to keep it. "Why should she?" Mr. Wheeler shouted. " She wants to keep us on the gold standard. We have never lost a war and never won a conference. The one thing in which Britain is interested is cutting down the debt she owes to America. She is not going to permit the American dollar to be cheapened unless we cut the war debts." Mr. W. E. Borah spoke in favour of currency inflation. He declared it was the only hope of aiding the fanner and raising commodity prices. Senate Rejects an Amendment The Washington correspondent of the New York Times says the outstanding reason for the refusal of the Senate today to adopt Mr. Wheeler's 16 to 1 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 the basis of bimetallism. It is further hinted that the plan will be taken up with Mr. MaeDonald 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 which would result as desired by Mr. Wheeler's partisans. Consideration of Debt Proposals 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 subject 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 to favour sincere consideration of any debt programme submitted, but to continue to adhere to the contention that other economic questions should not be subordinated to debts. SPEAKER OF HOUSE A SILVER ADVOCATE AGREEMENT ESSENTIAL WASHINGTON. April 17 The Speaker of the House of Representatives, Mr. H. T. Rainey, stated at a conference with journalists to-day that he favoured" some expansion of the United States currency and preferred it to be undertaken on the basis of a remonetisation of silver. There was a strong sentiment throughout the country for some inflation and that sentiment was rapidly crystallising in the House. " I prefer silver," said Mr. Rainey. " I am an irreconcilable Bryan 16 to 1 man. The trouble about it is that the silver advocates cannot agree on any one plan. Mr. Rainey said he had not discussed the remonetisation of silver with President Roosevelt and did not know the Administration's attitude. He would not take the initiative to press for silver legislation, but would leave it to the President. '"I think the United States can go ahead with a plan to remonetise silver without an agreement with Britain and France," said Mr. Rainey, " but it would be better if we could secure the concurrence of those countries. We will know what they think about it within the next week or 10 days." The ratio of the former standard silver dollars in the United States to gold was 15.988 to 1. The coinage ceased in 1904, was resumed in 1921 and again ceased in 1925. The late Mr. William Jennings Bryan, a former Secretary of State, attained a national reputation. as the leader of the free silver movement. It was his panacea for the industrial and agrarian evils of his day. In 3896 ho wrote tho Democrat Party's platform, which contained a plank providing for bimetallism, and in defence of his proposition delivered a celebrated speech containing tho passage: " You shall iy>t press down upon tho brow of Labour this crown of thorns; you shall not crucify mankind upon a cross of gold."