GOLD DRAMA

New Zealand Herald, Volume LXX, Issue 21473, 22 April 1933, Page 11

GOLD DRAMA

AMERICA'S ACTION INTERNATIONAL EFFECT (WASHINGTON PARLEYS SITUATION ALTERED EUROPE'S PLANS UPSET TSy Telegraph—Press Association—Copyright (Received April 21. 0.85 p.m.) NEW YORK. April 20 On the eve of the arrival in the United States of tho British Prime Minister, Mr. Mac Donald, tho question may be frankly asked to what extent the stage has been set for him rind fur >l. ITerriot (France 1 ) since the official abandonment by the United States of the gold standard and the intended adoption of "controlled inflation." This action obviously has upset the plans of the British and French Prime Ministers, and has let loose forces in America itself of possibly incalculable strength and not wholly predictable direction. Such a stage ( setting might prove too much for tho drama itself—namely, the adjustment of international economic affairs by way of the World Conference. A message from the liner Berengaria, which is ncaring America, states that when Mr. Mac Donald learned that the United States was off the gold standard, he consulted Sir Frederick LeithRoss, economic adviser to the British Government. It is understood that tho British mission feels that the situation for the talks with President Rooseyelt has been considerably altered. Coming Conferences Affected Frantic shore to ship telelphone calls from Press Associations to-day elicited the following statement from Mr. MacDonald: —"It is easy to realise that the events of the past two days have materially/ altered the situation since we left London, and have provided new elements for consideration. Quite naturally the abandonment of the gold standard by the United States will have a decided bearing on the coming discusBions." M. Herriot, in a statement on board the liner He de France, said: "My mission is a new one. We supposed the President would await an exchange of views with Mr. Mac Donald and myself before making a decision as his invitation was inspired by a desire to consult lis about the international aspect of this decision.

" Now that circumstances and arguments which certainly are powerful have hurried Mr. Roosevelt's actions our future conversations will have a new significance. I refuse, even by conjecture, to presume what his intentions are." Steps Taken Due to Circumstances In regard to the suggested adverse effect of the " stage setting " for the approaching arrival of the British and French missions it would seem to be indicated, that if there was any such intention it existed chiefly in the breast of Congress. The Speaker's statement to-day and the specific in the new Black Bill that the President, whenever he finds upon investigation that the commerce of the Uaited States is being adversely affected by the depreciated currencies of other countries, or wishes to secure international agreements for the stabilisation of currencies, can take appropriate eceps, seems to indicate this. It is indicated also that Mr. Roosevelt personally is not adverse to utilising the situation for the purposes of " bargaining " at the impending Washington conferences. However, circumstances, and not intent, seem to have been the principal impetus to the various steps and measures of the past few days and those of the days to come, both as regards Congress and the President, embarrassing though the situation may prove to the visiting statesmen. Benefits Visualised in America In spite of the nationalistic tendencies of, the situation there is a strong ■conviction that the extreme position which the United States apparently has assumed on the eve of the international conferences may produce benefits rather than evils. ~lt is pointed out that America, perhaps, now realises better than ever before that the policy of isolation is impossible, that the monetary systems of the chief nations of the world "are not only in fact interdependent, but that provision must be made :for their smooth, interdependent functioning. There is growing appreciation of the fact that Britain probably will make a lump sum' debt offering dictated by ■essential national and international economic considerations, and that if the United States Government does not see its way / clear to accept it the onus of the consequent dislocations will rest upon the United States rather than on the debtor.

Finally, there will he a readiness on the part of America to offer greater receptivity to foreien goods. America, hy encouraging the buying of foreign goods, will accelerate' the much desired domestic buying movement. In circles close to the Administration it is felt, therefore, that the " stage setting " should not prove altogether inimical to the impending world drama.

PRESIDENT'S MOVE OF THE DOLLAR STERLING NATIONS WARNED WASHINGTON, April 20 The Speaker of the House of Reprcsonratives, Mr. H. T. I 'ainey, informed .journalists to-day that President Roosevelt's monetary moves were designed to meet " the concerted and planned" 'campaign by foreirm nations to beat down /the United States commercially. " The President's move is toward bimetallism," Mr. Rainey said, " and it will place the Executive in a position to meet, on their own ground, the nations that depend upon the pound stealing. Unless those nations come with us to some international stabilisation of money, they are lost." Mr. Rainey saul there liad been a 'concerted drive by European nations ;against/ the American dollar. " They have been attempting to take all our gold from us, leave us stranded and rejducG us to a fourth or fifth class Power." lie asserted. He called the President's action "the most statesmanlike move made by any chief executive in my rhemory." Senator W. 0. McAdoo (Democrat, California), formerly Secretary to the Treasury, introduced a bill to-day to authorise of up to 8,000,000,000 'dollars in' United States notes to refund the Government's short-term debt maturing in the next five .years.