WASHINGTON PARLEY

Waikato Times, Volume 113, Issue 18929, 26 April 1933, Page 7

WASHINGTON PARLEY

OPTIMISTIC NOTE. SEVERAL PROBLEMS DISCUSSED. AIEASURE OF AGREEMENT. United Press Assn.- — Elec. Tel. Copyright. WASHINGTON, April 24. The British Prime Alinister, Mr MacDonald, and the President of the United States, Mr Roosevelt, in a J statement issued last evening repot te progress on the arms and economic problems which they had been discussing together in the afternoon and again in the evenihg. This stated that the first discussion, which took place on a Government yacht as she cruiseu down the Potomac River, was centred upbn the monetary aspects of the problems of the world’s economic recovery to be taken up at the London Conference in June.

The statement said: ‘‘We were occupied In' a thorough survey of the business of the Disarmament Conference at Geneva. It is felt by both of us that results of the day’s conversations will considerably advance the prospects of the. success both of the Disarmament Conference and of the International Economic Conference. The President will continue the discussion of disarmament problems with the French delegate, AI. Herriot.” Currency Stabilisation. Two more meetings of the British and American economic staffs yesterday were declared to have brought progress on principles for the world currency stabilisation plan laid down on the previous day by Air Roosevelt and Mr AlacDonald. A suggestion for Lhe creation of a world credit expansion agency was among the subjects -considered at the secret economic meetings. The President and Mr AlacDonald at their further meeting in the evening, at which the Secretary of State, Mr Cordell Hull, the British Ambas-; sador, Sir Ronald Lindsay, and American and British experts were present, explored in further detail some of the subjects generally outlined at Saturday’s meeting.

CANADA’S DELEGATES. CONFIDENT OF BENEFITS. NOTES AND GOLD. United Press Assn,—Elec. Tel. Copyright. OTTAAYA, April 24. Confidence that the conversations in Washington will result In great benefit to Canada and the world In general was expressed by the Prime Alinister, Mr R. B. Bennett, as he left Ottawa yesterday afternoon to fulfil his engagement with President Roosevelt.

It Is understood that while Mr Bennett has taken full data to Washington for the negotiation of a trade treaty with the United States he will insist that there be no disturbance of the treaties made at the Ottawa Conference. His main -proposal will be an exchange of Canadian cattle, fish and lumber for petroleum and anthracite coal, The Minister of Finance, Mr E. N. Rhodes, stated lit the House of Commons to-day that an Order-in-Coun-cil was passed two weeks ago suspending tho redemption of Dominion notes in gold. In reply to a question the Minister said he did not recollect tire date on which tho suspension became effective, but .would -table the order tomorrow, An amendment to the Dominion’s Notes Act -passed a month ago authorised the Governor-ln-Coun-cii to suspend redemption in gold whenever It was deemed advisable.

Mr Rhodes then explained that the mdve was merely for the purpose of regularising the situation that had been in existence since Britain went off the gold standard. There had been no redemptions in gold since that date except in small quantities for personal purposes. The fact that the embargo on the exportation of gold from Canada was applied as soon as Britain abandoned the gold standard nullified any advantage. that might be gained by securing gold for notes, The discussions again concerned the monetary aspects of the agenda for the World Economic Conference. After helpful exchange of .views it was arranged for a further discussion between the experts' to take place this morning, preliminary to a further conference with the President and Mr. MacDonald this afternoon. From the two meetings of the economic experts there developed a very definite idea that a new world gold ratio of between 30 and 40 per cent., as a reserve for currency, was discussed for possible inclusion in a general scheme.

It is stated that the experts agreed unanimously that the pound and dollar should be stabilised simultaneously at “true value.” However, they were not in complete accord as to the figures that would represent that value.

The British experts wanted the pound stabilised at 3 dollars 50 cents, while the Americans wanted it placed at K dollars, and favoured tentatively stabilising the dollar at about 85 cents. A Joint Statement. Messrs. MacDonald and Roosevelt in a joint statement issued to-night said: “Our purpose of exploring the problems of the World Economic Conference has been admirably served, and deep satisfaction over the discussion is expressed." An agreement on economic problems is reserved for the World Economic Conference, which may be speeded up io enable it to open about the middle of June. A spirit of v optimism prevaded the Anglo-American conversations to-day. At their close an understanding between Britain and the United States on a revised gold standard and monelary basis appeared to bo in sight, together with a very definite proposal for a reduction of armaments. Mr. W. E. Borah, chairman of the Foreign Relations Committee of the Senate, al'lor being host lo Mr. MacDonald, at breakfast, reported that the British Prime, Minister was optimistic, and expected agreements “which will make the World Economic Conference a success." The economic experts were summoned lo white. House for a late, report on their progress toward a revised monetary basis arid an understanding on agreements for reciprocal tariff reductions.

CURRENCY POSITION. AMERICA AND GOLD BASIS. LONDON, April 24. The Daily Mail says there can be no question of British retaliation against the United States in connection with Hie currency move but the situation should be carefully watched while the dollar is finding its true level. France already is talking of increasing her tariff to prevent American dumping, says the paper, and the course of events may make it nccessai'y for Britain to adopt some such method for her own protection. English newspapers, in their further comments on America’s departure from the gold standard, arc generally agreed that the step resulted from ttie domestic situation, but they consider that for the time being at least ii must have unsettling effects on the world's markets. Sir Walter Layton, eminent British economist, in telegraphing to the News Chronicle from America says that although it shills the basis of international iiogoliallons it was ccrlainty not planned lo force ilia Prime Minister’s hand and must bo Iltled into an international plan. The need for an early meeting of the World Economic Conference, Sir Walter considers is emphasised. WILL REMAIN ON GOLD. SWITZEII LAND’3 i)EC ISION. (Received April 20. 10.15 a.m.) BERNE, April 25. Switzerland is maintaining the gold standard.