STABLE CURRENCY

Timaru Herald, Volume CXXXIX, Issue 20108, 15 May 1935, Page 9

STABLE CURRENCY

UNITED STATES OFFER TO CO-OPERATE STATEMENT CAUSES SURPRISE United Press Association—By Electric Telegraph—Copyright (Received May 14, 7 p.m.) WASHINGTON, May 13. Notice that Washington will not be an obstacle to international currency stabilisation was coupled by Mr Henry Morgenthau (Secretary to the Treasury) in a broadcast address, with a warning that the United States will not act singly to peg the dollar. “Why should we be singled out,” said Mr Morgenthau, "and admonished that the moral duty to restore order is primarily ours. Before we make any committments we must be sure we won’t lose what we have just regained. We are not unwilling to stabilise. However if the great trading nations elect to continue under the present absence of rules, we are no longer at a disadvantage. We have revalued our currency no more than was necessary. We can go either way. Our hands are not tied. So far from engaging in a competitive devaluation race with other nations, we hold out to them a currency of such steadiness that its normal tendency may very well be for the rest of the world to move gradually towards practical exchange stabilisation. We are also endeavouring to restore silver to greater usefulness as a monetary metal.”

Mr Morgenthau made it clear, however, that with regard to exchange stabilisation, the Government would await any moves by the other countries, as the Administration was unwilling to surrender the power further to devalue the gold content of the dollar. In diplomatic circles, which are somewhat surprised at Mr Morgenthau’s invitation, it is felt that action will probably lead to new diplomatic overtures regarding stabilisation from which the feasibility of actually opening negotiations could be appraised. Control of Stock Exchange. Mr Charles Gay, veteran broker, was elected president of the New York Stock Exchange to-day in succession to Mr Richard Whitney. Mr Gay represents the so-called reform element, who wish to gain public sympathy for the exchange through the co-operation of President Roosevelt’s security commission. Mr Whitney, who is closely connected with Mr Pierpont Morgan, was reputed to be the choice of the "reactionaries,” but with the reform forces apparently in an overwhelming majority, the final unanimous vote was given to-day. 4