| Show r- r TIlE THE DAILY NEW YORK Financial Whirligig Written V tn for o Th The By JAMES McMULLIN NEW V YORK New York insiders with close new deal connections say that a major shift in monetary policy is on the way They contend that the doleful testimony of Secretaries Hull Hulland Hulland and Wallace Vallace in support of the presidents president's request request re- re quest for lor authority to negotiate tariffs and the presidents president's own remark that the Warren gold policy hasn't worked so well were part of the preliminary paving The word here indicates the administration has privately reached the conclusion theres there's no use trying to raise the domestic domestic do- do price level without some form of international international inter inter- national monetary cooperation The reasoning is that we are the only major nation now working actively against deflation and the sagging sagging sag sag- ging tendency of world prices short circuits our program wherever it touches our export mar mar- especially in farm products Further even devaluation to the cent 50 limit limit-is said to be rated as futile in administration adminis- adminis circles The idea is that its effect would soon wear off and wed we'd be back in the present fix Feelers to E Europe So the object of the neW ne' ne policy now taking shape is to promote an international monetary agreement which will gi a chance to keep prices moving up Its It's known wn in informed quarters that confidential fe feelers ler have already been sent out to lo the leading European countries But heres here's the rub Every last nation that hl has been approached flatly declines to talk alk about money unless we in turn are willing to talk about tariffs This situation is much more morein morein in evidence now than it was when the bill transmitting transmitting trans trans- tariff authority to the president was first introduced hence the urgent push behind the measure Local financial big shots mostly believe thata that a higher price level is much more likely to be attained along the lines indicated above than by following gold or silver theories There will willbe willbe be yells from bankers and business men whose pet industries are affected by modifications but v Nev York conservative leaders are arc more likely to play along with the president on a combination combination tion tariff monetary policy than you might have supposed before the Stimson radio talk was mad made Aviation Bucks Up Aviation circles are feeling qu quite tc bucked up at present compared to their gloom oom of a week ago Since Senator King of an Utah influential influential Democratic member of Senator Blacks Black's has committee become persuaded that the McCarran McCarran Mc- Mc Carran bill is the bet answer in sight to the airmail tangle they think hell he'll be able to swing some of his colleagues to the same viewpoint The McCarran bill has two features that appeal appeal ap- ap peal especially to local interests One is the restoration cf f mail carrying privileges to the lines that held them prior to contract cancellation cancellation cancella- cancella tion pending final adjustments on a new rate basis The other is the lr transfer of authority over airmail matters malters from the postoffice department department depart depart- ment to a new aviation commission The less the boys have U to do with Mr Fancy Farley the better they'll 1 like ke it If Farley awards contracts on the sis basis of recent bids experts say United is the only line that will not lose money this sum r. r All ll lines lines lines' would lose next winter but passenger traffic is showing such an encouraging increase that the summer of 1935 might tell an entIrely different story Rail Managements Win Point The railway wage settlement was ent entirely rely the idea of the railway managements InsIders say that no one was more surprised and pleased at the outcome than the government The managements were spurred to the move b by the desire to avoid a showdown They felt the six months months' leeway suggested by the president president dent would have left them up against a stiffer crisis than ever at the end of the period even if th the unions were willing to wait that long Either they'd have had to lo absorb the shock of ofa ofa a full pay restoration at that with time little chan chance e of traffic rafic gains to offset it or they'd have been on the spot with both the UnIons and the government They decided it would be less agonizing to swallow their medicine ne in several smaller doses The unions won a decisive viCtory but the managements can console themselves with wIlh the thought that their total wage bill will only rise about in 1934 Even a moderate traffic increase would cover that C S C The annual airmail cost to the government un under er the Fancy Farley temporary contract bids bids' is estimated around Th That's s 's about half of last years year's cost and would be almost covered by the revenue from airmail stamps The National Republican club is planning to get et out of the local rut and try to live up to its name in ina a big way C C C Dr Wirt's newsreel appearance drew overwhelming over over- whelming boos from audiences in two large New York theaters Copyright bt 1134 McClure r ah S i I j |
