TREATY SOUGHT

Taranaki Daily News, 19 April 1933, Page 7

TREATY SOUGHT

international currency

bi-metallism the basis RUMOUR IN UNITED STATES CHIEF POWERS CONCERNED INFLATION MOVE SHELVED By Telegraph—Press Assn.— Copyright. Rec. 5.5 p.m. New York, April 17. The outstanding reason for the refusal of the Senate to-day to adopt Senator Wheeler’s 16-to-l silver amendment, which was a direct inflationary proposal, was apparently an authoritative rumour that Mr. Roosevelt will seek to negotiate a multi-lateral treaty with Britain, France, Germany, Italy and Japan for an international currency agreement on the basis of bi-metallism, says the Washington correspondent of the New York Times. It is further hinted that the plan will be taken up with Mr. Ramsay MacDonald, British Prime Minister, before this week is ended. The purpose of such a treaty is, of 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 Mr. Wheeler’s partisans. , „ ' . . No intimation of the details of the plan has been revealed, but it is understood the President’s financial advisers have been labouring over it for weeks. It has been the subject of conversations between Mr. Cordell Hull (Secretary .of State) and Sir Ronald Lindsay (British. Ambassador). . The only other development in the international situation is the refusal of White House and the State Department to comment on Press reports that M. Herriot (France) will seek the lump sum payable as the basis for a debt agreement The unofficial policy of the. Government, according to' authoritative sources, envisages sincere consideration of any debt programme submitted, but the Government will continue to .adhere to the contention ■ that other economic questions should not be subordinated to war debts.

Bringing the coining economic conference into the Senate’s debate on inflation, Mr. Wheeler (Democrat, Montana) said he did not believe England would agree to re-monetise silver, because England had a trade advantage over Arne-, rica and wanted to keep it.

“Why should they?” Mr. Wheeler shouted. “The English want to keep us on the gold standard. We have never lost a war and never won a conference. One thing that the English are interested in is cutting down the debt they owe America. They will not permit the American dollar to be cheapened unless we cut those debts.”

Senator Borah spoke on behalf of currency inflation, declaring that it was the only hope of aiding the fanner and raising commodity prices. The Speaker of the House of Representatives, Mr. Rainey, said at a Press conference to-day that he personally favoured some expansion of the United States currency, and preferred it to be undertaken on the remonetisation of silver.

Mr. Rainey said he had not discussed remonetisation of silver with President Roosevelt and did not know the administration’s attitude.- He would not take the initiative in pressing for silver legislation, adding that he would leave it with the President. 1 “I think the United States can go ahead on a plan to remonetise silver without an agreement with England or France, but it .would be better if we can secure the concurrence of those countries,” Mr. Rainey said.