Show I D E EJ J 1 STUFF P Politics f and Finance f McClure Srn Syndicate I WASHINGTON TON t By fly Paul Mallon r nero acre WS as more inore t than n the law of behind the downfall of the th Iori officials look Ilke like Ilk oar r e eat that swallowed the canary L vAn AT m mention the B j- j J n SI da of the federal reserve and believe 1 JI 11 cf of New York huk Ir n t J. J P. P Morgan l None at of these then are stupid enough I. I kiTe leare any tracks uncovered They with almost too much e were manipulating me ce that they exchange to force the Lou Lon i conference Into taking thinKS things Just hap Mp They swear that way And imagine their theli when h n the miracle transpired f tote ir tr day I before the conference 1 like a s bolt from the blue blues blue blue- what they mean IB II know s T j- j 1 ith things in in that a state it would be better to tell teU this inside mood That Thai in to the potential only what hat the government 7 the Use federal reserve e and our bankers Bl ht have done done- to run the British p pound und up from rom to within foul days daS The ne inside situation then was bad tor forus s. s We wanted the pound pegged around 4 as a temporary truce loi jor the duration on of the conference As Jong as as the pound was around the British laughed at us u-s. They wanted it as low as possible to pre serve their theu- international trade bene benc- t. t KM 1 i fit V J Then came the bolt boll The pound a going up and dollars down if t Tie The da day the conference opened it il itI 11 I was was' i F u if it this tiis government wanted to run the pound and franc up UpI It would go gothe goI I jb the New v York federal reserve that tha the Brit Brit- ril ii bank Jc It would suggest hh MU could be made to see the light f c about an exchange truce if the pound re higher l' l rhe e federal reserve bank would flo jo to the large international exchange t f. f b bankers like J. J P. P Morgan It would J OP rd drop o a hint that the administration on would O d feel much less harshly about Mr Morgan If he could cooperate to tor r lett e British pound up If If Morgan happened then to be under Investigation by the t he he be would want to do it il It WD would be a a simple Dimple matter for tor him He Ife would merely fall fail into dollars the it international r credit w l 1 J ir Continued on on Two I INSIDE STUFF Continued From Pate Pace One low flow fow through his hi hands hand He would stack tack up credits credis against the pound and franc ranc The federal reserve could help that thai tat process along by having its it friends freds' freds buy uy francs franc and pounds in London The scheme would cost a piece of ol change The bankers banker would get theIrs back ack when the federal r reserve erve board subscribes to the international exchange ex cx- change fund The resumption of ol world word trade would make the experiment experiment ment eventually profitable for them I Such a program would naturally be followed by declaration of a free market for gold If Mr Roosevelt Roosevel wanted to prevent prevent pre pre- pre vent the process from leading to speculation spec spec- he could issue a public waning warnS wani war ing ng against it He may a 4 o This would be one of the smartest stunts in modern modem diplomacy It I would take a man like Dr Sprague to figure it I out out He is the international exchange expert we hired to see ice that we do not ret get the wont vorst wort of this managed currency bus bUll nes ness He Is the one who schemed the he British stabilization He would be the logical one to take the Frankenstein Frank Frnk- enstein apart apart Foreigners are not sure lure exactly what happened They have been charging barging us wih with skullduggery They are judging us by themselves They sold the dollar dolar short Ihor until unU we were compelled to go 0 off of the gold old standard in I self sel defense They did didt didI it I t not to benefit the world but to t I hep help their own foreign trade We have found out how to play the game fame me the th way they do it It 0 The most important angle anle Is i the te suggestion mos that the Morgans Morgan are beginning be be- ginning to play ball bal with wih the admin admin- Such will wi be of ot benefit benei ill all al around arond It I should be followed by closer cooperation between the Morga Morgan commercial banks and the treasury on government financing Those exasperating little delays you noticed in the adjournment of congress were not all al accidents Behind them were were the stealthy movements movement of certain senate pro pro- They Tey did not care to come out ut with a filibuster against Mr Roosevelt But they did want to know enow what wha State Secretary Hull was going to say ay in London Also Alo what debts was vas going to be done on war wa Most anxious about these thee things thing were Senators Borah La L Follette Folette and ad from Johnson Johnsn They had quiet help others 0 During the last Saturday night session La L Follette made two points of f order which the leaders over over- looked looke If U they had tried to to adjourn that hat that night La Follette was wa prepared d to o stop them It was Borah who put Huey Long up p I to opposing Mr Roosevelt's gov- gov reorganization plan pla Lon Long wu ivas wa snoozing at the time Something doubt made him he be te had hd eaten no hm drowsy He lie wandered over to the Rep Republican le side and took tok a seat next I Senator o Austin Austn IIi His Hi snooze lasted more nore than an an hour when Borah came over vcr and buzzed in his ear that the te Democratic leaders leader were trying to t get ge tIer der ct away away with wih a little legislative mur mur- Long took tok the floor and spoke poke until idea of ad ad- the he leaders leaders' leaders rave gave ave up their The coming official figures of the federal reserve board will wU bear bur glad 11 business tidings Industrial production will wl be shown show to o be around 72 2 That If Is the Indica lion ion of preliminary confidential esti estimates ton mates The public figures will wi be beut ou out ut about abou June June- 20 The figure 72 cent of nor nor- means means I It rose rOle to 72 pc pe per mal l. l The seaon seasonally ly adjusted averages aver aver- ares ages of the years yer 1923 1921 1021 i and 1925 are ire considered normal l That ha Is the he highest It n t has ha bee beers been since I January 1932 It I Is up 12 1 points point since Mr Roosevelt came In In 0 0 o 0 oThe The exchange trick was made madec c easier ier by the fact that Britain Brian was not buying dollars to pay her war debt as she should have been As A a mater matter of fact no one was buyIng buying buy buy- ing ig dollars at the time ti The Te exact ex cx- act way it i works work is i seemingly technical technical tech tech- to I. I It is really quite quie simple if you know how it i is is done The Te only secondary official oUi cial cia in Washington Wahington who is i supposed suppose to have known own J-own anything abo about t it i h is i Dr Sprague I NEW YORK rORK By James The London conference turned black inside Imide before the delegates were in their scats seats much much blacker than published reports report Indicate Two New Yorkers Yorkers George George Harrison Jurl Harri and son Ion of the Federal Reserve bank James Jame Warburg carried Warburg-carried carried our only real hopes for constructive acton action Their job was wa to t ret get re together with wih Governor Norman of the tho Bank of England England En En- gland and Governor Moret of the Bank of France for unofficial cooperation cooper cooper- atlon aton on currency stabilization and International price Increases via credit credi expansion This was wa the key to t our whole pro pro- gram ram I If U it I worked money and trade agreements through h conference channels channels chan chan- nels ads would no not have been hard to manage manare If U not our official delegation delera- delera lion tion ton might as a well wel be so many clothIng cloth- cloth lag Ing store dummies It I didn't work vork Other channels chanel will willbe willbe wU be bc used a a England Is i now publicly committed to a policy of making us the goat for forthe forthe forthe the conference failure Her secondary secondary second second- ary officials are plenty sore about bout what they call cal our attempted domination domination domi domi- nation naton and are setting the stage to fight tight It out with wih us on their own terms term They say if l we want isolation we can have it I. I Only they do not Intend to stop at isolation themselves Their plan is to rally raly the world against us u on an economic front Whether they get away with wih It de depends depends depends de- de largely on France The French have no love for us either But lCY will wi not sign up under the English banner unless the English will wi commit themselves themselves even even ven if i only privately privately- to some form of security p pact Ct This remains remains re re- re mains the major French objective Barring miracles it will wi eith either r be bea ben a n case of the United States against a led British led world or a thre three three-cor Cor Cornered scrap between this thi country England and France with wih the other ther nations siding where they ee e the most advantage The universal co cooperation cooperation co- co operation idea is definitely dead t You will wi probably see Professor Profesor Raymond Moley make his projected trip to London much sooner than expected ex ex- ex- ex possibly possibly within a w weak k or orten orten ten days His job will wiil wi be to put our participation in the conference on a or cure basis It I Is almost certain to be the former S 00 Our relations relation with wih Japan are ae scheduled scheduled shed shed- sched sched- to take an a unexpected t turn rp for forthe forthe the he better beter a at a D psychological moment mo nio- ment ment A treaty pledging both H naton na na- lions ton to arbitrate te any differences th that t may arise is simmering o-n o on the diplomatic diplo diplo- matte matic fire The groundwork was Wb laid during Viscount Ishi's visit New Ne NewYork NewYork York banks bank with wih Japanese contacts were In on the move a a a aThe The treasury scored a moral victory vic vie tory over the banks by floating its it June 15 issue of year five year notes at 8 27 per cent The banks bank had told M. M Mr Woodin it couldn't be bedone done so cheaply He was inclined to agree wih with them but was overruled an and l the Isue Issue went over with wih a bang The banks themselves subscribed to t their quotas without a n peep The neatest part of it i was that it was put over without any help from the federal reserve banks That mean means that the te government need have no worries about floating aD any volume of o securities for public works work or other purposes Calling the banks banks' bank bluff at this thi time was a bold and significant stroke It t has cured them of the idea dea that they bey were getting back to a position where they could tell tel the government how to run its It finances o o 0 oIn 9 In a single fortnight gold to the value of nearly has teen ceen sent from Holland Holand France and the theU U U. U S. S A. A to rest In Britain's deposit vaults A A movement Is afoot whereby the British may make it possible for foreign foreign for for- eign governments government to have a lien len upon this his hoarded wealth of their subjects subject Banking officials In England arc are more worried than pleased by the exaggerated exaggerated exaggerated proportions of these International ional tonal deposits Withdrawal sudden sudden- ly lylor for redeposit c elsewhere might present pre pre- sent ent awkward a problems The economic conference may teach the he sharp ones one of the te world a memorable memorable memorable memo memo- rable lesson leson o a a aThe The probable fusion nominee for lor mayor of New York will vill wi be a big SU sur sur- prise His name hasn't even been whispered to us now He is a hanker banker but Is not tarred v with ith th of f of nil all al things things but t th he Wall Vall Wal street brush Sponsors of the National Economy league cague arc are interested in his hi candi candi- dacy They will wi help provide the sinews of war which fusion so badly need needs J |