WORLD ECONOMICS

Hokitika Guardian, 24 April 1933, Page 5

WORLD ECONOMICS

WASHINGTON TALK

ROOSEVELT AND MACDONALD.

(United Press Association—By Electrio

Telegraph—Copyright.)

WASHINGTON. April 22,

Having turned over the details of economic mattery to their respective experts for further discussion, President Roosevelt and Mr Ramsay MacDonald appear to bo Waiting the arrival of Al. Herriot, France’s representative, to see if his views will jit into, the general scheme that lias so far been drafted.

Despite the protestations in all quarters at amity of feeling and co■opehation, the super-hetited political atmcspheie in Washington is certainly not conducive in the traditional sense, to calm, reasoned decisions. There was universal warmth in Mr MacDonald’s Press Club address, but by on intimation that, h© made, it was plain that he considered that America’s abandonment of the gold standard has been at least over-hasty.

The conversations of President Roosevelt and Mr MacDonald and their advisers have been strictly private. Meagre information represents them as being “amicable and clear of any apparent suspicion on the part of the visitors that the American gold export embargo is either retaliatory or solply for bargaining purposes. It is understood that two general proposals are projected. The first is for currency stabilisation, through a -multilateral treaty, fixing the gold kvnd' the silver parity. It suggested that’-’'the “metallic coverage” is to be reduced, which would be in line with the Administration’s inflation tendencies.

TARIFF. CURRENCY AND DEBTS

The second proposal is for multilateral and bi-iateral trade and tariff agreements, with horizontal tariff cuts

rn the former, and specified reductions on named commodities and raw material in the latter.

Al; ceremonial call,*;, by Mr MacDonald on Government officials were called off on Saturday at the. wish of President Roosevelt, so as to give them more time to pursue their discussions.

In a joint statement, following on Saturday’s discussions, the two leadeis said: “The main problems of the World Economic Conference were reviewed. The decisions reached at these- will be a-Uccated, in the first instance, to the experts, who would commence their discussions this afternoon, and continue, them to-morrow.

The dominant place accorded to world money stabilisation remained plainly evident in the light of the emphasis placed on the question at White House and at the' State Department. Suggestions are being considered for negotiations- to reduce the gold backing behind the national currency units, the aim being to lift commodity prices over the world, and thereby to spur world trade.

Economic disarmament /md an agreement lamong thei nations that would solve the monetary problems were pointed to py Air AlacDonald as the first step needed to start the world moving back toward better days, in a speech before the National Press Club on Saturday afternoon. “If you want to be secure and protected, come ,to an agreement with other nations, as a currency agreement is the only protection,” i

Mr Alacttonald tolcl of Britain’s efforts to preserve the gold standard. Then, referring to the United States’ departure from the gold standard, he said: “It nag created a very delicate situation internationally. It cannot be helped. No-one can be blamed.”

He said that one of the great purposes of the World Economic Conference would be to save democratic government. He emphasised that Democracy had raised the expectations of flie poffluation. Empty promises could no longer,:; be given by Governments. He urged unity among the nations to meet their common problems. He denied that Britain’s intention is to adopt a retaliation policy. “Retaliation is repulsive,” he said. “Retaliation is to drag conditions down.” He urged the completion of agreements, “and then,” he said, “those agreements should b© carried out by us like honourable gentlemen.” AI can while, in the lI.S. Senate, Senator Ldvis (Illinois) predicted the failure of th© Economic Conference if the European Powers insisted upon the discussion of the war debts before ti’iere were international commercial co-operative steps taken. Senator Lewis said that ho understood that Britain and France were contemplating >:;n effort so that, before any coucCtsions were made to the United States touching on trade, there shall first he an understanding of some form as to the cancellation or revision of the war debts. If this were so, the Senator said, the proceedings had best end now, for the American people were in hot temper for such treats. OBJECT OF lI.S. GOLD POLICY. The action of the United States in going off the gold to-an-t 1 ' *’d was described to-day by the State Department, in o. teV.gram to the London, Berlin, Paris and Brnrie omr-nvMos, as having for its aim the world-wide improvcmcint of oon' Hf,y pieces, and not at any special American adve."-

tage. The message contained an explanation of th© sudden embargo on rrokl exports, featured by a statement that its goal is not to obtain la bar-