MONETARY CONTROVERSY

Taranaki Daily News, 2 December 1933, Page 7

MONETARY CONTROVERSY

SUGGESTED CO-OPERATION BRITAIN AND UNITED STATES SENATOR BORAH OBJECTS HIS ADVOCACY OF SILVER By Telegraph—Press Assn. —Copyright. Washington, Nov. 30. Senator W. E. Borah again entered the monetary controversy to-day when he sharply answered Mr. H. Warburton’s suggestion that the United States might co-operate with Britain in reinstating a modernised and revised gold standard. Mr. Borah pointed out that the British and American world trade interests were so conflicting that “the possibility, to say nothing of the desirability, of such a conjunctive action with Britain is so remote at this time as I see it that it removes any proposal based upon that fact beyond the realm of practical consideration or discussion.” Mr. Borah chides Mr. Warburton’s failure to mention silver as a possible monetary base> and suggests that the Reconstruction Finance Corporation should purchase silver as it does gold until it brings the price to 75 cents an ounce. Then he would have the dollar consist of an ounce of silver and 25 cents’ worth of gold at the prevailing price. Mr. Borah’s statement greatly encouraged the silver advocates in Congress to-day, who are now confident that they will pass some sort of legislation to remonetise silver. “I believe there is sadness ahead of those selling United States short,” said Mr. R. A. Bingham, the American Ambassador, emphasising confidence in the success of the recovery movement at a thanksgiving dinner in London. He condemned the phrase “India-rubber dollar” and added that he did not expect uncontrolled inflation. When the dollar was devaluated to the same extent as the pound ip 1931 he hoped and believed that it would similarly benefit the United States.