| Show THE TOE DAILY NEW NEV YORK ORiC Fin Financial a n cia I Wh Whirligig W i r I- I Ii i gig Written for The Telegram by JAMES McMULLIN NEW EW YORK YORK The The pt presidents president's recent recent re re- cent statement that the dollar still is too loo hl high hish h in relation to the debt level and that we are arc not yet ready for stabilization which stAbilization which had Wall Wallstreet Wallstreet Wallstreet street hopped up in the good old old- fashioned way for lor all of ot e c hours ties hours ties In with the prediction in this column that the next new deal chick would be monetary The subsequent assurance from Washington that immediate devaluation devaluation devaluation deval deval- is not in the thc cards fits also The contradiction is only apparent ent Few people realize the vital distinction dis elLs elLs- Unction between the presidents president's power to cut the dollars dollar's gold value and his power to order the treasury treasury treas treas- ury to pa pay a higher price for gold The latter d doesn't necessarily connote connote con con- note the former lormer Moreover l while th theres there's r s 's a legal limit of or f 50 o cents on devaluation Cle theres there's nothing to prevent the treasury treas treas- ur ury from going soing beyond the corre come spending price of for lor an ounce of at gold sold to 50 and 60 and even higher it if its boss sees fit lit Its It's perfectly possible for our government government govern govern- ment meat to bid the metal way up in foreign markets and still be legally correct in maintaining that our currency must not be inflated at home This anomaly is the key to the situ situation tion New York are confident the president had two purposes in mind when he dropped his casual remark at a press conference One was yas to serve notice delicately catel on our British British Brit Brit- ish pals that the they had better belter quit greasing the chutes for the pound pound- or else The other was to test the popular reaction to the idea of furher further further fur fur- ther her monetary ry maneuvers 0 e Important AmerIcan interests American are yelling their heads off behind off behind the scenes scenes for for drastic action to halt the menace to exports The cotton cot cot- ton textile Industry for instance already has taken a l lot t of at punishment punishment punish punish- ment since ince sterling hit the tobos- tobos gan Cancellations of at foreign bu- bu buyIng ing orders orders especially especially from South America are AmerIca are roiling rolling up like a snowball Foreign purchasers will chisel any price advantage they can from exchange fluctuations to 0 Assuming that the public likes 1 the looks of the trial balloon in insiders insiders insiders in- in siders expect a minor experiment shortly after alter a higher official bid for gold in the London market If II that seems to work all right they anticipate bolder steps on the theme same me path path and and probable emula emula- tion ion of or the British example in divorcing di die our currency from gold This can can and and probably will will will-be be done with no official change in inn the dollars dollar's domestic valuation There would be no inflation technically But experts agree that such a acour cour course e would eventual eventually and tably lead to formal devaluation unless s an international stabilization tion agreement were reached first The The- latter is quite po possible possible possible-as as as London would hardly relish the prospect of prolonged jocke jockeying ing against a free doll dollar r. r a Signs multiply that England Is having a lot more internal trouble than the the- world knows New York sharps interpret the British governments governments government's gov gov- tents willingness to discuss discus Lloyd G Georges George's orges orge's new ne deal formu formu- la Ja as a desperate effort to find an out The informed prophesy that unless mounting unrest can be somehow appeased the MacDonald- MacDonald Baldwin setup is likely to be given the bounce in no gentle genUe manner e Financial circles are surprised at the skill with which Premier Flandin Flandin Flan Flan- din of France has confounded his critics by strengthening his political political political cal position But they fj figure ure his severest test lies ahead when resounding resounding re reo re- re sounding proclamations about de dc dc- dc lending fending the gold od standard must give way to realities I Anything done to the franc willbe will willbe willbe be a swell excuse for the numerous numerous numerous numer numer- which ous French groups specialize special special- specialize ize in raising hell heJl to start getting promiscuous bricks and bullets If IC Flandin can get by by then he willbe will willbe be in ina a class by himself el as a ma ma- 0 It New Yorkers observe that Bill Gr Greens Green's ns n's celebration of ot Clay WillIams WillIams' Williams Williams' Wil Wil- liams' liams resignation from the N R Aboard A Aboard board as a great labor triumph is like a rooster claiming credit for forthe forthe forthe the sunrise e. e The word woid here is La that Williams saw his job fading to tol less ss than a shadow and simply decided to call caU it a da day The N R A is al already already al- al ready three dead letters where code enforcement is concerned and the chances that it can be back to life lite look Jook very slim Comment runs In runs In the light of at administration concessions to congressional congressional congressional con con- gressional critics that critics that the blue blueeagle blueeagle blueeagle eagle is like Uke a punch drunk boxer who suffers the Ironic fale fac of a final knockout by his own man man- ager All AU the published published- optimism about the international copper conference conference con can ference finds no response among New Yorkers who ho know how those things work They remark that the three big Canadian producers are not represented represented represented rep rep- resented at all and that any a agreement agree agree- ree- ree meat ment which fails to include them themis is worth about as much as a Confederate Confederate Confederate Con Con- federate greenback They also doubt that Katanga Interests Interests on on which the whole Belgian Congo virtual virtually depends for lor existence existence- will take kindly to the idea of restricted restricted restricted re re- re- re production Cynics also observe that that even even if it an agreement is reach reached the reached the d-the the copper people have frequently proved th themselves past master at sidestepping a 0 There are Indications that the federal tender render board L is getting down to cases with the hot oil l jl problem since ince It was given fresh authority by the Connally bill Il Illegal II legal production already has been cut from about barrels a day dayto to about in the East Texas field feld New York experts believe that further tightening of the screws may cut it down clown to from to barrels more more more- which is rated m irreducible min mm- Copyright McClure Newspaper Syndicate |
