Show 1 THE DAILY NEW NEWT YORK YORKI F I Fina Financial Whirligig ir I Written tn for o Th The 1 By JAMES mS McMULLIN l NEW YORK YORK That That remaining rise in inthe inthe inthe the gold price which the president can command com corn mand New mand-New New York still calls it devaluation to 5 50 cents will cents will be rationed as sparingly as the last loaf of bread among a boatload of castaways New Yorkers in a position t to b know V say that intimations of something doing in silver or paper money money or or mysterious hints about the equalization fund will fund will be used to prod recovery recovery ery cry back to a trot if it shows signs of that thai tired feeling If they dont don't get results the gold price can be hoisted a little at a time tune to give a stiffer jolt Why the caution about devaluing to the legal limit Because its it's the last currency weapon weapon wea wea- pon pan the government wants to employ anc and must be stretched to cover possible cies des Three are in sight already a flood of capital s seeking eking refuge in dollars and tending to push the dollar up the French crisis with probable probable probable able currency turmoil to follow and the normal normal normal nor nor- mal summer lag in business S S S SIn In the background lurks the threat of still further devaluation when congress meets peets in 1935 unless recovery is clearly dearly moving u up u. u New York York- und understands the administration is keen to head that off because it might e easily get out of control S So if the Skipper is stingy with his monetary mone tary ammunition you'll know why If and when the gold price hits it will be all gone and no shots must be wasted on the way I What for Silver and Paper This isn't to say that nothing will be done about silver or paper money Gestures with both are probable But experts agree that no silver move short of international or an Anglo American agreement to boost silver silver silver sil sil- sil- sil ver prices in the Far East East can can have much ac actual actual ac- ac Lual economic effect x Any paper laper money issued will be a sop to the I and not a serious price boosting measure Local authorities are convinced it wouldn't stay in circulation n anyway y It will be II made clear that any IssUe put out is legally legall backed by gold reserves It would be possible I to issue the huge sum of without without with with- out Dut changing reserve requirements at all aU now that cent 59 revaluation is here Wants F. F M. M A. A Plan Pushed Meanwhile the committee for the nation is staging an intensive drive to have th the gold price boosted to the legal maximum at once It is using the same tactics that have helped I its measures before urging before urging urging thousands of people people peo peo- pie to inundate Washington with letters and telegrams demanding action But neutral in insiders insiders insiders in- in siders say that this time the committee is stymied No amount of pressure on congress will sway the administration from its purpose to make haste baste slowly The committee is also beating the drum for forthe forthe forthe the Goldsborough bill to create a federal monetary monetary mone morie- tary authority It m may y have more luck in this direction because the administration will at least not stand in the way To Discourage International Speculation New Yorkers cooperating with Washington are privately working on plans to prevent the timid timi patriots who shifted their funds abroad from cashing luscious us profits profits' via via devaluation The answer will probably be a very stiff tax on imported dollars That would smack the smart boys loose from their unearned 1 d gains gahs and would also discourage international speculators speculators speculators spec spec- whose sudden appetite for dollars complicates complicates com corn the governments government's problem Jones Jones' Remarks Irked Bankers J Jesse Jese se Jones' Jones admonitions on on credit expansion to the New York State Bankers' Bankers association surprised and riI riled d local financiers They were were set for a pat on the back and what they got was something else They firmly insist they are now granting all the loans that b bank examiners and anda a decent respect for their depositors' depositors rights will win let tet them One banker comments that Jones' Jones remarks tame came right after niter the federal reserve member banks over the country showed a gain of in loans and investments for one week including over half a billion in government securities Hes thinking in ancient history What the heck more can we do unless we pitch pennies with our depositors depositors' money Socialist Fascist Fight Behind Riots Local exper experts say that the French political crisis hasn't reached its is climax with recent riots They learn that the French socialists socialists' are up Lip on their toes against the lithe menace of fascism and may try to beat the Tardieu supporters to the punch I. I S S S New York banks are cutting their franc commitments as fast as possible and are not acquiring franc balan balances es when they can help it They rhey regard the extension of gold deliveries by of France ce to 48 ha hours rs as s a certain step stepto to the ne complete suspension of gold exports Rumors that our stabilization t und fund nd has been supporting francs by bu buying Ing them are fantastic Any such operation would simply be courting a 1 heavy loss Copyright Mcclure Ut J |