PLANS UPSET

Stratford Evening Post, Volume II, Issue 226, 22 April 1933, Page 5

PLANS UPSET

EFFECT OF AMERICA'S ACTION Visit of MacDonald and Herriot DIVERSION FROM GOLD STANDARD Press Association—Copyright New York, April 20.—0 n the eve of Mr, MacDonald's arrival the question may be frankly asked to what extent the stage was set for him and for M. Herriot since th 3 official abandonment of the gold standard and the intended adoption of controlled inflation have obviously upset their plans and loosed forces domestically of possibly incalculable strength and not wholly predictable direction. Such a stage setting may prove too much for the drama itself—namely, the adjustment of international economic affairs by way of the world conference.

Frantic shore to ship telephone calls from the Press Association today elicited a statement from Mr. MacDonald: "It is easy to realise the events of the past two days have materially altered the situation since wo left London and provided new elements for consideration. Quite naturally the abandonment «f the gold standard in the United States will have a decided bearing on the coming discussions." New Significance M. Herriot in a statement aboard the He de France-said: "My opinion is a new one. We supposed the president would await exchanges with Mr. MacDonald and myself before taking his decision as the invitation was inspired by a desire to consult us about the international aspect of (his decision. Now that circumstances and arcertainly powerful, have; hurried his steps our future conversations will have a new significance. 1 refuse even by conjecture to presume his intentions." Benefits Rather Than Evils Despite the nationalistic tendencies of the situation there is a strong conviction that the extreme position which the United States has apparently assumed on the eve of the international conferences may produce benefits rather than evils. It is pointed out that America perhaps is now realising better than ever before that isolationism is impossible and that the monetary systems of the clnet nations of the world are not only in fact interdependent, but also that provision must be made forJ_heir smooth interdependent functioning. Lump Sum Offering There is growing appreciation of the fact that Britain will probably make a lump 3um offering dictated by essential national and international economic considerations, and that if the United States Government docs not see its way clear to accept the offer the onus of consequent dislocations will rest upon the United States rather than the debtor. Finally thero will be readiness on the part of America to offer greater receptivity to foreign goods. America by encouraging a buying movement of foreign goods will accelerate the mu'ch desirVed buying, movement domestically. • Circles closej to the Administration feel that the stage-setting, should not prove altogether inimical to the world drama.