MORE PESSIMISM.

Wairarapa Age, 4 July 1933, Page 5

MORE PESSIMISM.

The Unsolved Currency Problem. MR. ROOSEVELT’S REJECTION OF SCHEME. COUNSELS OF PATIENCE FROM DIPLOMATS. LONDON PRESS COMMENTS. LONDON, July 2. President Roosevelt's rejection of the currency scheme- has rekindled the pessimism which prevailed early last week. Again the threat is heard that an early adjournment of the Conference is likely, but all diplomats suggest that such talk is a little rash until Mr. Cordell Hull reveals President Roosevelt’s policy to-morrow. The ‘‘Observer” says that if the Conference is adjourned, it will be dead, and so would the faith of half the world in orderly government and human co-operation. The “Sunday Express” says that President Roosevelt is right. The gold countries are trying to bolster up a situation which should be allowed to find its true level. The “Observer’s” Paris correspondent says: “It is believed here that Britain is restrained by Australia and Canada, which are under the influence of the dollar, from attaching the pound to the franc, unless the dollar is included in the combination, and that the utmost Britain can do is form an intermediate group with the Dominions between the gold countries and the United States.” DISTUBBING SETBACK SERIES OF DISCUSSIONS OCCASIONED. LONDON, July 2. A whole series of Conference discussions took place in the afternoon in consequence of the unexpected setback received from President Roosevelt. In the first place, Mr MacDonald returned to Downing Street from Chequers, where he had intended to Stay tin to-morrow. He first had a !™ S ‘ alk With Mr - HuU > then with (aamberiain, and later the whole British delegation assembled and discussed the situation for an hour. When to -J®" over ’ Mr - Chamberlain went w-rt h !i. TreaSUr7 and had a !on K talk With the representatives of the gold entries — France, Italy, Belgium, S witzerland, and Holland. No announcement of any decision was made.. FRANCE CARRYING ON. ANOTHER EFFORT TO BE MADE for AGREEMENT. ... PARIS, July 2. tn w ° f the PreMh intention to withdraw from the Conference were jTXn™f by th ® “nnnncement that rein the rt Wa J ratuming to London to Er Conference deliberations on Monday. It « understood that he has received Cabinet instructions to work RritnTn st^ >11 2- sat ion agreement with "tain and the European Powers for t - United Stat <»* tbn S d Clro!es declare that if ri die J Covernment decided that, °° nfe^ ence failed ‘0 produce S’ wirtd ltS July tXj b raw from the Customs truce and impose a 15 per cent, surtax Aniencan goods as the devaluation of the dollar, just as BACK TO GOLD, DETAIL'S OF DECLARATION TO ROOSEVELT. ™ D , LONDON, July 2. he text of the declaration on the tion*. qUestlon t 0 which ail the delega tions were reported verte-isv tn aftCr ' c " a tion riden? Ron u° ley ’ Was sent *° President Roosevelt, concludes:— “The Governments subscribing to this de elaration whose countries are not on fnlf’ r ®™iP“ se tbe importance of the own Wl . thout prejudicing their tUt ri tUTe u ?tlo . S “/ 01d and reiterate that the ultimate objective of their currency policy is to bring back an in ternational standard based on gold under proper conditions. The Government of each non-gold country agrees to adopt effective measures to limit exchange speculation, other signatory ate to n X ltS puking to ” y ate to the same end. Each Government agrees to ask itk central bank to co-operate with other central banks in ’rmrtteg speculation and at the proper S ’£S

A BRITISH STATEMENT.

UNDESIRABILITY OF CURRENCY COMPETITION.

(Received Monday, 7.30 p.m.) LONDON, July 3. Tbe “Daily Telegraph” learns that Britain is issuing a declaration stamltaneously with that of the gold bloc, asserting a determination to defend our currencies at any cost. The British declaration emphasises, firstly the undesirability of States entering into currency competition, in order to aeqire a temporary advantage in international trade; secondly, the need of regulating currencies anq smoothing out as far as resources will permit fluctuations in exchange due to speculative influences.