OCR Text |
Show Economic Highlights When economists disagree, the lay public is in for a puzzling time. And economists who formerly saw eye to eye are disagreeing with a vengeance over the new money bill, with its $2,000,000,000 stabilization fund, international gold bullion standard, and credit expansion features. fea-tures. There is no lack of well known financial authorities to say it is vital to recovery. Others say it may be paving the way for the greatest collapse of all. At any rate, the Administration is now working on the problem of credit expansion for private business. busi-ness. The problem is especially imposing, im-posing, as during the next few months the government will offer seme great bond issues to finance continuance of the recovery program, pro-gram, and these will absorb much of the money that is available for lending. Credit is to be expanded, If possible, to a degree sufficient to offset this. Every effort will be given to depreciating the dollar in foreign exchange, and holding it at a lower and mere stable level. In keeping with this the price of gold was recently re-cently fixed at $35, in the belief that it wouM send the franc-dollar exchange rate to about 6.63 cent.j, oi.d the pound to above $5.10. Thj immediate result was a disappointment disappoint-ment the London gold price took a jump and the franc-dollar and pound-dollar exchange became still more unfavorable. The next day, however, devaluation of the dollar in foreign markets started. |