AMERICA’S ACTION

Waikato Times, Volume 113, Issue 18926, 21 April 1933, Page 5

AMERICA’S ACTION

MOVED FROM GOLD.

TO SAVE THE DOLLAR.

ASTONISHMENT IN BRITAIN.

APPREHENSION IN FRANCE. The announcement that the United States had moved from the gold basis has caused astonishment In Britain and apprehension In France. British bankers do not oonslder there was Justification for the move, which Is regarded In Amerloa as having been taken to proteot the currency against an antl-dollar drive. QUICK AOTION TAKEN. TO CONTROL INFLATION. United Press Assn, —Elec. Tel. Copyright. (Received April 21, 9.40 a.m.) WASHINGTON, April 20. Intent upon getting quick authority to direct controlled Inflation, Mr Roosevelt and his economic counsellors to-day collaborated with 'the Congressional advocates of currency inflation in drafting legislation upon which it is proposed to act without delay. The ‘Congressional * leaders were consulted in the struggle to overcome ■constitutional obstacles to the proposed legislation. It is anticipated that the measure will be ready for introduction late today, as an amendment to the Farm Bill invthe Senate. The bill would give Mr Roosevelt authority to issue unlimited new currency as legal tender under the old greenback law, and would also enable the President to reduce the gold content of the dollar, by international agreement or otherwise. To overcome constitutional objections to the latter proposal it was tentatively agreed to limit this authority to a reduction of the gold content of the dollar by 50 per cent., the same principle as involved in his control over the tariff rates, reacting to the skyward swing in stocks and commodity prices. The Congressional leaders appear to be standing behind Mr Roosevelt’s campaign. Quick action is desired to get the situation fully in hand as soon as possible. The Draft Prepared. The draft of the proposed amendment to the Farming Bill Control Inflation was completed by the Democratic leaders late to-day. With the provision for authorising new currency up to 3,000,000,000 dollars the President would have power to direct'the issue of the supplemental currency.

Other details of the proposal are withheld pending the introduction of 'the measure in the Senate, hut it was understood to authorise the President to accept up to 100,000,000 dollars in silver as part payment of war debts and to reduce the gold content of the dollar. The leaders said the bill would not be pressed to a vote to-day, but it will be on the table for action to-morrow. ' DRIVE AGAINST THE DOLLAR. meeting planned campaign. STABILISATION OP CURRENCY. United Press Assn.—Elec. Tel. Copyright. (Received April 21, 12.30 p.m.) WASHINGTON, April 20. The Speaker of the House of Representatives, Mr Rainey, told news-papermen'to-day that Air Roosevelt's monetary moves were designed to meet “the concerted and planned campaign by foreign nations to beat down the United States commercially.” Mr Rainey said the President's move was toward bimetallism, and would place the executive In a position to meet the notions that depend upon the pound sterling on their own ground. "Unless those nations come with us to some international stabilisation of money they are lost," he said. “There has been a concerted drive by the European nations against the American dollar. They have been attempting to take all our gold from us, leave us stranded, and reduce us to a fourth or llflh-class power. The President's action is the most statesmanlike move taken by any chief executive in my memory." THE VILLAIN OF THE PIECE. AMERICA’S JUDGMENT OP BRITAIN AN INTERNATIONAL PROBLEM. United Press Assn. —Elec. Tol. Copyright. (Received April 21, 12.35 p.m.) LONDON, April 20. The Evening Standard’s ilnanoial writer says llie significance of the American decision on the eve of Mr Ramsay MacDonald’s arrival cannot he exaggerated. 'Britain with her depreciated currency and exchange equalisation fund is regarded by the United States as !ho villain of the piece.

The Daily Herald says America’s move demands international action to provide for world inflation, not inlla|ion by one or Iwo countries, and lliii.h increase the purchasing power of the whole world.