WORLD CONFERENCE

Hokitika Guardian, 22 April 1933, Page 5

WORLD CONFERENCE

NE W SITUATION

AMERICA AND GOLD STANDARD.

fUnited Press Association—Hv Electric Telegraph— Copyright.)

NEW YORK, April 20.

On the ev e . of Mr Ramsay MacDonald’s arrival .in America, the que s tion may fr.mkly be a s ked as to what extent the stage was set for him, and 'r].s 0 for the .representative o f' Prance, M. 'Herriot, since America's official .abandonment of th e gold' standard and heir intended adoption of controlled inflation has, obviously, upset their plans, and has also loo s ed forces domestically of possibly incalculable strength, and not wholly predictable in their direction.

'Such a stage setting might prove to be too much for the drama itself, namely, that of the adjustment or international economic affairs, via a World Conference.

Frantic shore-to-shjp telephone c"lh from the Press Association to*cky elicited a statement from prime Mirifster 'MacDonald' .He g’afd •; ‘‘lt js easy to realise that .the events of the past two days have materially altered the situation since we left I/m don, aha ■have .provided now elements for com elderation. Quite naturally, the 'abandonment of the gold ‘standard by the United' 'States will have a decided bearing on the coming discussions,” M. Herriot (exPremier of France), in a statement made aboard the liner ""lie de France,’’; said: “My mission is a new one. We had supposed that the President would await ?,n exchange .with Mr MacDonald and myself befor e taking his decision, a* his invitation was inspired by a desire <o consult us about the international aspect of this decision. Now that circumstances, and arguments—certainly powerful—-have hurried his steps, our future conversations will have a new significance. I. refuse, even by conjecture, to presume his intentions,” -Internally, the various developments of the ' last, two days in the United States are obscure for the purposes of interpretation as to their long time ttffejt. They are obviously. Intensely vigorous. A leaden Wall /Street has I changed .mightily into a. rocketing | stock market, with certain important i issues, such as United Steel shares, gaining fifty per cent, in price, while . the bonds of even the United States Government are. depressed. Commodities have made exceptional - gains. The parallel '» drawn that the going .. 0 fl: the gold Standard did not L fceriorslv raise the co s t of living in Britain, and that, similarly, the American 1 "man-'in-the-street” will not be /affected in any way; but it Seems., impossible ith.nt basic gtaffg of life iiuul living enn continue to bnve ( nny more such hectic markets as during the past, few days without the cost of living rising quickly and perceptibly. That this, if not accompanied by an (automatic ladjustment upward of the present deflated wa-ges, might serfously discommode a great clement of the population, the. labouring classes, is -inescapable; and the labouring class ca.n at the present time ill | afford to adjust itself to any further dislocations." 1 To revert to the question of stage setting, it seems t 0 indicate that if ■any such intention existed, it was i; ■lodged chiefly in the breast of Congress. Speaker (Rainey's - statement today, and also the specific provisions made in the Bill that the President, whenever he finds, upon investigation, that' the commerce of the United 6tate s is being adversely affected by the depreciated currencies of other * countries or whenever, ha wishes to teecure international agreements for ‘ the stabilisation for currencies, can take appropriate steps, both seem to indicate this. It is indicated, too, that President Roosevelt, personally, is not adverse to utilising th e situation for purposes of “bargaining” at the impending 1 Washington 'Conference; but circum- I stances, and not intent, seem to have < been the principal impetus of the ' various steps and measure of the ' few days and the -days t 0 come, both s as concerns Congress and the 'President, embarrassing though the situa- I it ion may prove to the visiting states- 1 men.

MACDONALD DECLINES COMMENT

•ABOARD THE BERENGARIA, April r 20. As soon as Mr MacDonald learned •the United States was off the gold standard, he consulted Sir Frederick Leigh-Boss, Chief Economic • Expert

of the British Government. Mr MacDonald refused to comment. ; British® mission felt the situation with ■ respect to the McDona’d-RoosOvelt ■conversations had been, considerably filtered. ' .