INFLATION IN U.S.A.

Star (Christchurch), Volume LXIV, Issue 740, 19 April 1933, Page 1

INFLATION IN U.S.A.

Amendment Favouring Plan Withdrawn. SUPPORTERS CHEERED. United Press Assn.—By Electric Telegraph—Copyright. (Received April 19. 11.15 am.) WASHINGTON. April 18. The passage of the Currency Inflation Bill this session was predicted by the Speaker of the House of Representatives. Mr H. T. Rainey, who said the Administration desired to submit its own plan. That was why Democratic leadership was seeking to prevent other measures being brought to a vote. Senator Thomas (Democrat, Alabama) to-day withdrew his proposed inflation amendment to the Administration Farm Relief Bill, announcing that he reserved the right to re-offer it. The amendment was to have been a second attempt by inflationists, following the defeat by 43 votes to *33 yesterday of a proposal for free coinage of silver at a ratio of sixteen to one with gold. Despite the setback inflationists are cheered bv the gain in strength over January’s test. Mcnetisation of Silver. The Washington correspondent of the “New York Times” says that the outstanding reason for the refusal of the Senate to adopt Senator Wheeler's amendment to monetise silver on the basis of sixteen to one which was a direct inflationary pro posal. wbs apparently an authoritative rumour that President Roosevelt will seek to negotiate a multilateral treaty with Britain, France, Qermany, Italy and Japan for an international cur rency agreement on the basis ol bimetallism. It has been further hinted that the plan will be taken up with Mr Mac* Donald before this week rs ended. The purpose of such a treaty would be, of course, to prevent fluctuation ir international exchange. Its consum mation would mean an extensive inter national campaign of silver purchases which is the result desired by Senatoi Wheeler’s partisans. No intimation of the details of th plap have been given, but it is undei stood that the President’s financial ad visers have been labouring over it fo l weeks. It has been the subject of conversations between the Secretary .of ! State. Professor Cornell Hull and the ! British Ambassador, Sir Ronald LindI say. BRITISH CURRENCIES. Advance in Sympathy With Inflation Talk. (Received April 19. 11.15 am.) NEW YORK. April 18. The talk of currency inflation legislation hoisted British currencies to-day. At noon the pound sterling had reached 3.491 in United States funds, 34 cents higher than yesterday’s closing rate. The Canadian dollar advanced by three-sixteenths to 83 15-16 MR ROOSEVELT ACTS. Problem of Inflation is Taken Over. (Received April 19, 12.30 p.m.) WASHINGTON. April 18. Mr Roosevelt to-day took over the problem presented by Congressional sentiment for Currency Inflation.