CURRENCY PROBLEMS

Poverty Bay Herald, Volume LX, Issue 18067, 19 April 1933, Page 7

CURRENCY PROBLEMS

AMERICAN. DISCUSSIONS SUPPORT FOR INFLATION GOVERNMENT BILL EXPECTED lElec. Tel. Copyright —United Press Assn.) (Received April 19, noon.) NEW YORK, April 18. The New York Times’ Washington correspondent says that the outstanding reason for the refusal by the Senate to. day. to adopt Senator Wheeler s 16 to one silver amendment, which was a direct inflationary proposal, was an apparently authoritative rumor that Mr. Franklin 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. MacDonald before this week is ended. Ibe purpose of such a treaty is, oi course, to prevent the fluctuation of international exchange. Its consummation would mean an extensive international campaign of silver purchases, which is the result desired by Senator Wheeler’s partisans. No intimation of the details of the plan has been revealed, but it is understood that the President’s financial advisers have been laboring over it for weeks, and it has "been the subject ot conversations between Mr. Cordell Hull, Secretary of State, and Sir Ronald Lind s’ay, British Ambassador. BRITISH FUNDS STRONGER The passage of a currency inflation bill this session was predicted by the Speaker, Mr. Ramey, who said the Administration desired to submit its own plan. That was why the Democratic leadership was seeking to prevent othei measures being brought to a vote. Senator Thomas, a Democrat, of Alabama, to-day withdrew lus proposed inflation amendment to the Administration T< arm Relief Bill, announcing that, he reserved the right to reoffei it. The amendment was to have been the second attempt of the inflationists, following the defeat by 43 votes to 33 yesterday of the pr -posai for the free coinage of silver at .t ratio of 16 to one with gold. Despite the setback, inflationists are cheered by the gain in strength ovei •January’s test. Talk of currency inflation legislation noisted British currency to-day. At noon, the pound sterling had reached 349( cents in United States funds, 3£ cents higher than yesterday’s close. The Canadian dollar advanced 3-16 cents to 33 15-16 cents.

Mr. Roosevelt to-day took over the problem presented by the Congressional sentiment for currency inflation.

The only other development in the international situation is the refusal ot White House and the State department to comment on press reports that M. llerriot will seek a lump sum as a payable basis for the debt agreement.

The unofficial policy of the Government, according to authoritative sources, envisages sincere consideration to any debt programme submitted, but will continue to adhe-re to the contention that other economic questions should not be subordinated to debts.