AMERICAN DOLLAR

New Zealand Herald, Volume LXX, Issue 21521, 19 June 1933, Page 9

AMERICAN DOLLAR

RELATION TO STERLING STABILISATION SCHEME WASHINGTON'S ATTITUDE APPROVAL NOT GIVEN By Telegraph—Press Association—Copyright (Received June 18. G. 35 p.m.) NEW YORK, June 17 The Washington correspondent of the New York Times says the Treasury Department revealed officially to-day proposals for currency stabilisation which have heen submitted to President Roosevelt from the Economic Conference in London are not agreeable to tho American Government. The American delegates to the conference have been instructed within what fixed limits they may act but no specific point of stabilisation between the pound and the dollar has been designated. It was made clear that the Administration does not propose to enter into any temporary or permanent agreement calculated to give foreign countries tho economic advantage of deflated currencies. A Treasury official said the United States should not be placed in the position of closing the door to stabilisation. All realised tho importance of such action. In tho opinion of observers the President's coolness about early stabilisation can bo attributed to the importance with which ho regards a tangible improvement in domestic prices. He does not wish to risk a setback until other phases of the conference —such as the lowering of trade barriers—have been canvassed which might give tho nation a corresponding advantage. Both Mr. Roosevelt and Mr. William Woodin, Secretary of tho Treasury, are represented as having strong views about the stabilisation negotiations. There are indications that the Government's policy at the London Conference will be rigidly controlled from Washington. In view of the extensive stabilisation discussions British and American experts are reported to have had at the time of Mr. Mac Donald's visit to Washington the following part of the Treasury's announcement is regarded with unusual interest in diplomatic circles, namely: "The stabilisation discussion m London is not one which this Government initiated. We are willing to listen but do not wish to be placed in the position of trying to reach a deal. That is to say, no counter-proposal will be made." PEGGING OF RATES POSSIBLE ARRANGEMENT LONDON PRESS SUGGESTION (Received Juno 18, G. 35 p.m.) LONDON, June 17 Tho Investors' Chronicle says it appears possible that a of the sterling-dollar rate between 3.95 dollars and 4.05 dollars will be attempted, together with the controlled sterlingfranc rate as it now obtains. From the British point of view it is essential to insist that tho arrangement shall bo only provisional, for in view of the comparative wage levels m Britain and America the rate should not be higher than 3.60 dollars, adds the paper. POSITION IN LONDON DECISION EXPECTED NO AGREEMENT YET JjONDON. June 10 Though it is officially declared that no currency stabilisation agreement has been reached between Britain and America, reliable indications ha\e been given that a decision in a few dajs is expected and that an agreement w ill be announced early next week. What is going on at the Bank of England in the direction of exchange stabilisation between sterling, the dollar and the franc is undoubtedly an all-sufficing reason why this morning the Monetary Commission and the Economic Commission of the World Conference had very brief sittings and then adjourned until 10.30 a.m. on Monday.