Evening Star Newspaper, April 20, 1933, Page 4

MANAGED DOLLARS T0 REPLACE GOLD Ourrency Devaluation Is Seen by Bankers as Result of Action. —_— By the Associated Press NEW YORK, April 20.—Uncle Sam was launched upon a bold program | today to replenish his pocketbook with | managed dollars, temporarily cut loou“ from gold. | The fateful step of “going off the gold standard” was frankly taken. Before this announcement was made by Treasury Secretary Woodin, dollars had declined in anticipation yesterday some 10 per cent in terms of principal European gold currencies, and prices of stocks and speculative commodities had surged upward Not since redemption of paper cur- rency in gold had been resumed in 1879 had the United States officially announced itself off the gold standard, although an embargo on gold exports had been in effect for a time during the ‘World War. While much confusion developed in high financial quarters as to the import of this momentous step, J. P. Morgan, in one of his infrequent public state- ments, indorsed the new impesition of a definite embargo on id exports, saying: “It seems to me clear that the way out of the depression is to combat and overcome the deflationary forces.” Unprecedented Step. The embarking upon a managed currency program by the United States was an unprecedented step for a major country. Others, notably Great Britain, have abandoned the gold standard under pressure of heavy foreign with- drawals. But the United States, with its huge supply of gold now under Government control, and its favorable balance of trade, was in a& position, according to financial authorities, to| keep its currency close to lts gold | parity had it desired { The suspension of the gold standard | was undertaken deliberately to decrease the purchasing power of the dollar, in an effort to increase prices and to bring the economic structure back into & working balance. The gold standard, as commonly de-i fined, provides a measure of value in| terms of gold. through redemption of currency in fixed amourts of gold upon | demand, in the case of our currency,! in 2322 grains of fine gold to the| dollar. ‘Thus, the gold standard in this coun- try had not been in full operation since the banking holiday in March, when redemption of paper money was halted but the Treasury had licensed a few gold exports-for foreign exchange trans- actions, tending to support the dollar | close to gold parity. The definite em- bargo now placed on exports clarifies the situation. | Gold's chief importance in the finan- | eial world has been in settlin Intgrv{ national balances, for it is the only: international measure of value. With gold exports checked, the dollar must find its own level in relation to other currencies, on & demand and supply basis, -subjéct to the control of deal- ings by the New York Federal Reserve Bank which has been in effect since the banking holiday. With the United States a creditor Nation, and enjoying a favorable bal- ance of trade, foreign exchange experts explain that under normal condit ns.l the dollar left to find its own level on | a demand and supply basis would nat- urally be expected to advance rather than to decline. The favorabie balance of payments to this country have re-| sulted in a huge inorease in its store of gold in the past decade. But the belief that the United States might seek to extricate itself from its economic morass through reducing the purchasing power of the dollar has been sufficient to prompt selling of dollars by foreigners with balances in New York, and the purchase of other cur- rencies, as YWell as selling of dollars} by foreign exchange speculators. t It is this abnormal pressure against the dollar, ‘exchange experts explain, which has decreased its level in rela- tion to other currencies. How far such pressure may reduce the level of the dollar is regarded in Wall Street as highly probiematical, and dependent | largely upon inflationary steps taken in ‘Washington. {U. 8. Action Called Most Far Reaching | clers feared today that France eventu- ! Telephone System Shipped to China Will “Cause Talk” By the Associated Press. NEWPORT NEWS, Va. April 20.—Part of the cargo of the British steamer City of Bedford, now en route from Hampton Roads, will cause a lot of talk, when it reaches its destination— Amoy, China. On board the boat is a complete telephone exchange, recently dis- carded by the city of Martins- ville, Va., when a new dial system was installed. It is destined for 1?suluum in the Far Eastern city. EMBARGO BRINGS ANXIETY ABROAD! Puzzlement and Extreme Worry Is Britain’s Reac- tion to Move. (Continued From First Page.) held that other factors influenced the American move. ‘There is satisfaction in official quar- ters over the steidiness of the pound in relation to the gold standard, there being very little change in the value of the pound in terms of the French franc. It was understood that the govern- ment’s exchange equalization fund may be turned entirely to the purpose of holding the pound steady in relation to the franc, whereas heretofore the fund was mainly employed to keep the pound from rising on the dollar exchange. Newspapers linked the action with the impending visit of Prime Minister MacDonald, treating it editorially as a bargaining counter with which to greet him, and even as a threat. May Hinder Conferences. The Morning Post remarked that MacDonald would be confronted with a new situation of which he could not have had more than the slightest inkling when he sailed. It suggested that it may develop that the United States’ action has placed on obstacle in the way of summoning the World Economic Conference needing all the resources of statesmanship to remove. The Herald's financial editor said the American decision could only be re- garded as a threat to force MacDonald to give an unconditional guarantee that Great Britain will return to the gold standard, and urged his refusal. The writer added: “The action has thrown the international exchange market into complete confusion and will prelude what may prove a bitter trade war with Great Britain and other non- gold nations—a war in which currency depreciation will be the main weapon. The Dally Mail speculated on whether the future dollar would be used for bargaining purposes at President Roose- velt's series of talks. It emphasized there are big gold holdings in the United States and said there was no economic justification for the action. Wall Street Domination. The Express contended that Great Britain must not abandon its present position and that “under no condition must the pound return to the gold standard and be pegged at a level with the dollar.” It said: “That way lies the surrencer of our independence to domination of | wWall Stree The Telegraph foresaw the possibility that President Roosevelt will ask Mac- Donald to effect a return of the Brit- ish pound to a gold basis. “The premier cannot grant that de- mand unless he receives assurance that the conditions under which the gold stancard could work smoothly would be | provided by international co-opera- tion.” FRANCE MAY QUIT GOLD. Financial Event in Century. PARIS, April 20 (#).—French finan- | Inflation has become such a conten- tious word that a number of financial | authorities ‘have sought to substitute ! other words for it. such as “anti-defl tion.” Inflation is commonly defined as an increase in the circulating me- | dium, meaning either currency or bank | eredit in the form of checks, or both, | with a consequent rise in prices. Methods of Inflation. Inflation may be accomplished through either credit or currency expansion. It may be accomplished through heavy expansion of bank credit, as in the re- cent boom years, or through depreciation of the currency thrcugh deliberate re- . duction in the gold content, an increase in the volume of currency, with conse- quent reduction og fold reserves, or deliberate issue of fiat money. The form of inflation most widely feared is the issue of fiat mcney, which has frequently resulted from failure of governments to balance their budgets, their eventual loss of credit and i ability to borrow, .finally leading to the printing of unsecured paper money to pay expenses. It was such a course of events which led to the American issue | of “greenbacks” during the Civil War. | Successful steps taken by the Federal | Government to recuce its expenditures, | according to some leading banking | authorities, the United States is not on the road to | “greenback” inflation. ‘The setback in United States Govern- ment bonds in the New York Stock | Exchange, which was an early response to the gold embargo. was explained as | due largely to a rush by investors to convert their funds from highest-grade fixed interest-bearing securities into more speculative media to-take ad-| vantage of the advancing prices. It was not a question of the Government's! eredit standing. - The chief difficulty experienced with & managed currency, cut loose from gold, has been in kecping it in a stable relationship to other world currencies. Gold has become the only generally a cepted and successful medium of inter- national exchange- Since Great Britain suspended gold pavments fn September, 1931, the pound sterling has fluctuated widely in relation to gold currencies, although the large “sterling group“ of currencies, including those of the Brit- ish Dominlons and the Scandinawian countries, have held in a fairly stable ratio, permitting the transaction of busi- ness within the group without serious danger of loss from exchange fluctu: tions. | | | Few Remain on Gold. With the dollar cut loose from gold, the only important currencles still on a free international gold standard are French and Swiss francs, Belgian belgas and Dutch gullders. In the interests of maintaining trade relationships,’ éx- has offered assurance that |l ally will be obliged to follow the United States off the gold standard. She already is on a gold bullion basis, releasing only bars. Bankers say that further restrictions are likely because Great Britain is draining French gold. The Bank of England got most of the $117,000,000 in gold France lost in the past four months. ‘The Bank of France is extremely cau- tious. Bankers said contrary to cus- tom, it issued no advice in the present | situation but adopted a “wait and see” policy. Unprecedented Action. One leading banking expert said: “This is the most far-reaching finan- cial event of the past century, far greater than England's desertion of gold. For the first time in history a country has deliberately devaluated money In order to boost prices and the consequences to the world will be of such proportions that none can fore- see their extent.” Government officials and banking ex- perts agree with press comment that the great dollar-pound battle has been launched. Some believe England will reduce further the value of the pound in rder to meet American competition, thereby increasing danger for the franc. Pinancial experts surveying the sit- uation recently expressed the opinion that Belgium, Holland and Switzerland likely were to precede France off the gold standard. Modification Seem, The government can increase tariffs and reduce import quotas at any hour but they are already extremely high and stringent and may the Prench market for the present. United States action was generally viewed here as foreshadowing a pro- found modification of the forthcoming economic discussions between President Roosevelt and representatives of world powers. It is a preface to those conversa- tions said uvre, and demonstrates again that “the White House talks will center on financial and monetary | problem: | Le Journal observed that it cannot | be hidden that the step logically en- talls “inflation, by whatever name it is adorned.” | The newspeper Figaro insisted the | consequences inevitably must be world- It said: “Dissociation of the doliar from gold creates for (British) sterling an untenable situation.” | REICH DOUBTS DEVALUATION. Creditor Position Is Expected to Hold change experts here belicve that these countries must stabilize their currencies Lx; relation to sterling or dollars or th. In fact, the necessity of stabilizing currencies to prevent interference with world trade, it is expected in important banking quarters, will now become so imperative, that a successful termina- | tion of the World Economic Conference seems almost assured. Banking authorities here are inclined 1o the belief that the gold standard will | be widely restored, on a more workable Up Demand for Dollar. BERLIN, April 20 (®).—German financial circles regard natural deval- | uation of the American dollar to be ex- | tremely unlikely inasmuch as the United States balance is active in all fields as |the United States is constantly receiv- | ing payments for trade and debts. Present fluctuation:, in the boli~f of experts nere, cannot touch the dollar exchange in the long run. This belief is founded especially on the fact that America is the world’s creditor, for which reason the demand basis. This might be, it is explained, on the basis of joint devaluation of sterling, francs and dollars in terms of gold, in the same ratio. This would {ree a large amount of monetary metal. Or the leading countries might agree to reduce their legal gold reserves from the accepted 40 per cent level, to perhaps 25 per cent. for dollars will always result in a na- tural equalization of dollar exchange near parity, it was said. Added to this is the fact that the number of countries which might be considered greatly. ‘The measure taken by the United States, in the view of commentators THE EVEN STABILIZED MONEY HELD GREAT NEED Britain Declared Best Equip- ped to End Chaos in World Trade. ! BY MARK SULLIVAN. ‘The administration’s decision to cease maintaining gold support for the dollar in international trade had sev- eral purposes, immediate and remote. | One immediate purpose was to raise prices of goods in America. Friends of the measure and critics of it agree that the step is likely to be followed by & marking up of the price level of prac- tically all goods in America as well as some kinds of securities. 3 From this point onward, however, there is acute disagreement about the wisdom of the administration’s action and about its probable consequences. It is safe to say that in the whole his- tory of this long serles of economic storms Mr. Roosevelt’s present action will rank as an important landmark pointing one way or another. It will, perhaps, be most useful now to omit for the present the disputed aspects of the administration’s action and attempt to clarify the whole sub- ject of fluctuating currencies through- out the world as they are since the dollar joined them. This subject, fluc- tuations of currencies and the need of stabilizing tnem, will be the funda- mental topic of the coming conversa- tions between President Rooeevelt and Prime Minister MacDonald of Great Britain. It will likewise be the princi- pal subject of the international mone- tary and economic conference to be held in June or later. Nations Divided. As respects currency the world untit yesterday was divided into three parts. Since then it is divided into four. A man with a vivid if whimsical gift of expression has described the divisions of the economic world thus: (1) “Sterlingarip,” meaning the im- mense area, including much more thar | the British Empire, which uses sterling as currency. (2) “Argentinia” (Latin for silver), meaning the immense area and peovles in Asia, Latin America and elsewhere which use silver. | (3) “Goldavia,” meaning the coun- tries which cling to the gold standard. “Goldavia” has lost much territory re- cently and now has not much more than 75,000,000 people, chiefly France. Pinally, there is the United States, which up to yesterday was a part of | Goldavia, but has now seceded to “go | it alome.” Not only do the currencies of thes: territories differ. They have come, dur- ing this depression, to fluctuate vio- lently. These fluctuations are an ex- treme barrier to international trade. They amount to oceans constantly and | violently storm-ridden to such an extent | a3 to keep shipping off the water. Busi- ness men in all countries cannot risk making purchases when they cannot know what will be the value a week ahead of the currency of the country ! to which they must make payment. The | result is international trade has fallen | to less than a third of normal. With the United States now adding another to the floating currencies, the contractior of international trade must become even | greater, unless the whole chaotic condi- | tion is remedied by the conference be- | ginning this week. | For the cure of this condition, Brit- | 2in holds the greatest power, because Britain not only controls the currency of “Sterlingaria” directly, but influences | that of “Argentina” indirectly through | her relation to the silver “policy o(‘ India. | i Stabilization Great Need. ‘The charge is made that Britain has | been benefitting by the fluctuations of sterling end silver as against gold and as against the United States. The charge has even been made, in Congress | and elsewhere, that Britaln has been| manipulating fluctuations to the dicad- vantage of the United States. The charge may be unjust, one of those! suspicions that infect the world in time of distress. Because of this cl e there is some inference that one of the administration’s purposes in | letting the dollar go adrift is to coun- . teract manipulation to our disadvan- tage. This Inference goes on to say hat President Roosevelt will now be in Donald and the other nations. surmise says Mr. Roosevelt will try to persuade Britaln to unke with us in going back to the gold standard. Some friends of silver in Congress think Mr. Roosevelt will ask Britain and other nations to unite with us in going on & bi-metallic basis. i Omitting all that, the facts about which there need be neither emotion nor argument are that Britain has a preponderant influence in exchange, and that Britain and the United States together with France should be able to achleve world-wide stabilization. : Stabilization is the greatest one need. Tariffs, reciprocity, intergovernment debts, practically everything else are y-products of stabilization. A group of Europeans of the highest possible stand- ing asserted some time ago that sta- { bilization of exchange is of more con- sequence than any other one thin, the happiness of every man, womai nnd] child throughout the world. “Unless ! present tendencies, chiefly instability of | exchange, can be changed, we question | whether the present structure of civili- ! zation will survive.” It is a portentous | | Congress, it is the idea of Mr. Roosevelit STAR, WASHINGTON, D. C, THURSDAY, APRIL 20, 1933. ROOSEVELT TO WIN BROAD POWERS FOR CONTROLLED INFLATION (Continued From First Page.) most statesmanlike move taken by any Chief Executive in my memory.” Thomas Supports Move. While the President worked with his advisers at the White House to smooth out the constitutional difficulties, Sen- ator Democrat, of Oklahoma, at the Capltol, revealed his view that the impending would “solve every problem so far as the money question is concerned” and be of tre- mendous benefit to bargain with for- eign powers for uniform money systems Careful note was being taken of the| rising markets, and without apparent ! rd to what was happening to the lar in letting it seek its own level | on foreign exchanges. At the Treasury, meanwhile, inten- sive study of how 4,000 closed banks of the Nation can be aided in reopening was carried on by Secretary Woodin and governors of the 12 Pederal Re- serve banks, Called to Washington to go over the financial and economic situation of the Nation, the Governors had re- ported business conditions throughout the country improved in nearly all lines recently. They also discussed the Gov- ernment’s gold embargo and its effect upon business. In an interview Senator Thomas— who agreed upon the plan to give the President broad discretionary power to deal with the money question at a conference last night with Senators Pittman, Democrat, of Nevada; Byrnes, Democrat, of South Carolina, and Ray- mond Moley, Assistant Secretary of | State—sald it probably would be de- termined definitely today whether to zgler it as an amendment to the farm bill ‘e won't have to operate the farm with this provision attached,” told newspaper men, “because it will raise commodity prices itself more than the farm bill.” Congress Backs President. Representative Byrns, the Democratic leader, told newspaper men at the| Capitol: “The temper of the House is such! that I think it will stand behind the President and give him whatever he! wants.” “We expect him to want some means of bringing about a limited and con- trolled expansion, which in no event will affect us as it did Germany.” ‘The measure under consideration in part would authorize Mr. Roosevelt to issue currency and reduce the gold content of the dollar. Doubt has arisen, | however, on whether there is power in Congress to extend this right to the President to modify the gold ratio. Secretary Woodin and Budget Direc- tor Douglas met today with the Presi- dent and Senator Robinson of Arkansas, the Democratic leader, at the White House. It seemed likely that the conferences | would run throughout the day. although a tentative agreement had been reached last night on the form of the legisla- tion. It also was stated that while America is off the gold standard in international | trade as a result of Roosevelt's with- drawal of gold support of the dollar in foreign exchanges, the United States is technically on the gold standard do- mestically. In seeking the authority proposed by to keep & firm control over the infla- tionary process. He wants a new price level and a greater exchange of money, but he wants to be able to stop the in- flation within bounds. It appeared certain as the day went along that the President would not send a message to Congress on the new legis- lation, but rather leave it entirely to its devisers for introduction there. This conflicted with the imoression in some House quarters. Early plans for & presidential message apparently | had been altered. “A Bank Relief BilL.” Enthusiastic over the bill, in the draft- ing ¢f which he has had a prominent part, Senator Thomas told reporters: “It will put value back into com- modities and real estate and there will be no necessity to refinance farm mort- gages. “It is also a bank relfef bill, as it will put value back into the collateral as basis for approximately $40,000,000,000 of frosen deposits. “It will put value into every security in the banks and be the salvation of every bank in America.” Thomas said the four-fold program would give the President authority to issue Treasury notes under the old greenback law of 1862, but in greater amounts, and to make them legal tender for both public and private debts. It also would authorize the President. in his discretion, to reduce the gold content of the dollar, either inde- pendently or under an international agreement returning foreign nations to ! the gold standard and with a domestic | content in harmony with other cur- rencies. | Further provisions would permit the acceptance of silver in part payment of war debts and authorize the Secre- tary of the Treasury to prepare rules and regulations with approval of the ll’resident for administration of the aw. There would be no limit on the amount of Treasury notes the Gov- ernment could issue, Thomas said. One feature would be a redemption fund to retire the notes which would work this way: The Goverument would use the notes ISTRATEGY OF GOLD DECREE IS HAILED Congress’ Inflationary Moves Back of Action, Finance Experts Believe. BY REX COLLIER. Government experts on finance to- day halled President Roosevelt’s action In declaring America off the gold standard as an effective bit of eco- nomic strategy forced upon him by radical inflationary moves in Congress— & strategy likely to have a salutary effect on business generally. Defending the President from pos- | Pa: sible cries of discourtesy with refer- ence to the approaching conferences with Ramsay Macdonald of England, | Herriot of France and Mussolini's emissary, the financial authorities pointed out that Mr. Roosevelt's hand was forced in advance of the economic parleys by Senate action on inflationary amendments to the farm bill. As a matter of fact, one high Federal expert on international finance declared, the United States theoretically has been | off the gold standard ever since the issuance of executive orders against do- | mestic gold withdrawals from the banks and restricting exports of gold to other countries. Not Wholly Off Geld. ‘The President’s latest order, he said, merely tightens restrictions already placed on gold, without affecting the gold content of the dollar. Technically, he explained, America is not wholly severed from the gold stand- ard so long as the dollar remains valued ir gold content. The effect of the forthcoming international economic conferences may be to revaluate the gold content, which now stands at 23.22 grains of fine gold. The extent of the expected boost in prices and spurt in buying will depend largely, it was pointed out, on the psychologic reaction of the public to news of the gold embargo. The state- ment in New York of J. Pierpont Morgan supporting the President's ac- tion should aid in starting an upturn, it was felt here. “The fact that the President took this step while MacDonald and Her- riot are on the high seas and Musso- lini’s delegate is en route here has strategic value. It should tend to in- duce England and other countries to return to the gold standard as rapidly | as possible,” the Government expert remarked. Thinks Legislators Forced Move. “I believe, however, he might not have made the move now, but for the Senate action on the farm bill. This inflationary move apparently forced im- mediate action, at the risk of being con- sidered discourteous to the foreign visitors. The step should serve to stay radical inflationary moves in Congress.” One Government official explained that this country is on the gold stand- ard when it fulfils all of the follow- ing conditions: 1. When the unit of currency is ex- pressed in terms of gold. 2. When the Government accepts gold for minting at the fixed rate. 3. When all forms of currency which the Government and its central bank | issues are redeemable in gold on de- mand. 4. When the Government permits free | import and export of gold. “Theortically we went off the gold standard.” he sald, “when the Presi- dent issued his proclamation instruct- ing banks not to pay off in gold cer- tificates or gold. Granting of Licenses Halted. “That impaired, but did not wholly abolish the gold standard. The gold standard was seriously impaired fur- ther on March 10, when the President put an embargo on gold subject to the condition that the Secretary of the ‘Treasury might issue licenses for the export of gold where needed in or- dinary international trade. This ex- ception was necessary because gold is an international currency. “What President Roosevelt announced yesterday is that no licenses at all will be granted. We will accept gold from abroad. Under the March 10 order the Federal Reserve Bank of New York ex- ecuted a species of foreign exchange control designed to restrict foreign ex- change dealings to transactions of legit- im foreign exchange character. The bank required daily reports of the pur- chases and sales and an indication of sources and purposes for which sold and also a daily report of holdings of foreign_exchange. “Evidently it was the thought to avert speculative dealings against foreign ex- change. This functioned pretty well until all this inflation talk began in | | Congress, ‘capped by the Benate's vote of bimetallism, of &mn; the gold con- to con. “Thus, if s French bank had balances on the dollar, and this sale at a time price of the dollar. | dition, dut to fear of foreigners and “Every one is agreed that from the more goods abroad than we import. ness abroad is a comparatively small , England when she went off the gold Despite heavy withdrawals of gold ther raids on the dollar in case for- | stated. zre sufficient to permit us to pay ‘hl"e been misunderstood by the people. | need than a year as an emergency measure— faym amendment. “Because of the fact that people in this country and abroad feared we might do something radical along lines tent of the dollar, they % vert their dollar hommum foreign currencies ‘through the exchange. Supply Exceeded Demand. in New York and feared the doll:r! would be seriously affected, it would: sell dollars abroad. The only buyers| were those who could get a discount of apprehension as to the future of l the dollar and when normal volume of exchange was low, due to restricted foreign trade, meant a break in the “Thus, the supply of dollars exceeded the demand. The result was the oflqx-l ing of dollars at constantly widening discounts. This was an abnormal con- some Americans as well. The country was perfectly justified in withdrawing permission to export gold under license —=and that is all that has been done. viewpoint of balance of international yments, no reason exists for the de- cline in value of the dollar in terms of other currencies, because we still sell We still are a creditor nation. At the same time, we are paying less to for- eigners by reason of diminished tourist trade and other factors. Our indebted- item. Foreigners should be buying in- | stead of selling dollars.” This expert stressed that America is in a much stronger position than was standard in September, 1931. England's supply of gold at that time was vir- tually nil, vast sums having previously been borrowed abroad. from this country in May and June a | vear ago and after England's gold ban, | what remains of our foreign gold bal- ance is sufficiently large to tempt fur- eigners decided to withdraw all of their balance, he said. Would Have Restricted Credit. | our stocks of gold at present, it was | off all these balances, but to have done |it at this time, when the citizens at home are being prevented from with- drawing gold from their banks, would Furthermore, the outflow of gold would have had a deflationary effect, causing banks to restrict credits fur- | ther at & time when more credit is ed. “We've defended the gold standard | for a long time,” the official asserted. “During the latter part of the World | War we went off the standard for less to the same extent as provided in the | new presidential order. We were help- ing England and France by ‘pegging’ | the value of the pound and the franc. A number of other currencies went over | the value of the dollar then. i “Since the war we have done much to ald other countries maintain the | gold standard. We have extended cred- | its. long-term loans, expert advice, the | Dawes and Young plans, and have op- | erated the money market through the discount and open market policy of the Federal Reserve Banks so as to ease the | strain on foreign currency. It has cost us a great deal, too. | Prices Depressed by Deflation. | “It now has become a nice question as to whether or not we shouid con- | [ tinue to practice the gold standard in | | orthodox ‘fashion, since so_ few coun- | tries are left on gold, and the great | block of sterling currencies and those linked thereto have been off the stand- ard and rcluctant about returning, thus keeping international trade un- ! U. S. DOLLAR SLYMBS HEAVILY ON MARKETS THROUGHOUT -WORLD —_(Continued_Prom Pist Page) Simbing bac Ko 22,63, e Bolar sit 8 new low for more than seven years y{e;f.frd.y, with an official qmuo’n of DAWES, TRAYLOR LAUD BAN ON GOLD 4 Only Thing That Could Be| Done,” Former Vice Presi- BERLIN.—The Reic] dent Declares. American Gollar today &t maves, 3o Ppfennigs, which means that the mark in h::nh spproximately 25.64 cents. The By the Assoclated Press g o e i Beriin m""w showed & mark CHICAGO, April 20—Midwest agrl- | cents. S < culturists, industrialists, financiers and merchandisers have united in indorse- ment of President Roosevelt's embargo on gold exports, a step in the announced policy of controlled inflation. “It was the only thing that could be done,” said Gen. Charles G. Dawes, former Vice President, referring to the gold embargo. “And in my judgment it will have a good effect upon com- modity prices. It will assist generally in the necessary readjustment hetween commodity prices and debts.” “I am entirely satisfied with it,” said Melvin A. Traylor, president of the Pirst National Bank of Chicago. “Personally, I have been of the opinion for some time that the only way to equalize our | exchanges with foreign countries was to suspend gold shipments.” D. F. Kelly, president of the Fair, large Loop department store, said: “We have been hoping for this commodity rise for some time. I hope it will bring the desired results in business. A price Tise is always good for business. People | have been waiting for prices to rise and now that they are going up it, no | doubt, will stimulate business” " | - 8. Jones, secretary of the Minne- sota Farm Bureau Federation, mun':'nl:d‘ the controlled inflation plan “in so far| 85 it raises the general price level for | :h-.r!mbl:nd othe!r commodities.” He said | reau ‘s inflation . “ends for controlled price | cents, where it was pegged for more | than a year. WILL HELP COMPETITION. ‘\ = ¥ .| BERN, S8witzerland. — The dollar | opened at 4.70 Swiss 1 today the exchange. e o | fluctuated between 161, an ::::do:ih.c‘l news from the United States | ar, o mge groups of American tour~ ks and trs seek- ing information. SVE Remglen The officfal exchan was 18.51 lire to the ROME.—American _dollar fiuofiufl ge close yesterda) dollar. 7 VIENNA—With the news g printing British reports from Wn?}lnp:: ton to the effect that the United States | is entering currency inflation travel agencles and banks today reduced the dollar rate to 8.2 schillings per dollar. Tuesday they were paying 9.2 schillings, MADRID.—Considerable nervousness was reflected in money centers today. | The dollar was not officially quoted but there were some deals, based on Londcn and Paris rates, ranging around | 10;‘21"; pesetas to the dollar. e peseta valuation of approxi- :‘:“ltu% 1? tol the vi:)i};r l’epl‘esmp ts & of almost one- 1 value within a week. ol BUENOS AIRES.—The dollar ned today at 3.45 pesos, compared w'i’fhe an average of 3.91 since the banking holi- day in the United States. The A which is 44 cents at par, thus passed 29 cents, the highest quotation since the middle of 1931, compared with 25.5 Gov. Cooney of Montana Sees Greater Distribution of Money. HELENA, Mont., April 20 (). —Presi- | ent Roosevelt's * contralied iAoy e et e e t] of al In ‘oronto program was lauded Jast nigh by ‘Gov, | quoted the United States doliar at 13 ank H. Cooney, who said “What we | 10 13% per cent premium. need most now is to make our dollar work more and distribute more ‘money AR O PEOBIE. 1 eecntive wuss | BUYS OWN PAINTING Country to comerts oy ouid, cnable this| AETER COURT BATTLE country to compete on more nearly even | terms with countries whose “cu‘rrle);::; E | | Artist Who Won $3,464.61 Judg- ment Against Mrs. Norman deflated.” Kerry Pays $125 for It MURRAY APPROVES ACTION. Oklahoma Governor 7!)’1:- Prompt Changes in Tariff Also. OKLAHOMA CITY, Apri - : ' Gov. Willlam H. Murssy ?ué‘ifi.y Ul/OS ANGELES, April 20.—A. Muiler registered his approval of President ' 8Ttist Who recently engaged in a goflos:’velt'z plan for controlled currency (COUrt suit with Mrs. Norman Kery, ation. = | wife of the actor, over a painting he “However,” the Governo “ order to maintain permancnt and con. | 3¢ Of her, purchased the canvas at tinued profit in the rise of prices an auction today for $125. The sh must follow up with other and furthes | Bad ordered the sale as the mul:nnfll moves affecting foreign trade. 3 judgment for $3.464.61, obtained by changing the purposes of the tariff and UTY 2gainst Mrs. Kerry, who had re- by principles of reciprocity, particularly jected the work, claiming it failed to with Latin America. portray her features properly. = “The public needs to understand also —— = = the Associated Press. certain.” Commenting on the upturn in prices already noted as a result of the Presi- | dent’s_announcement. the Government official said it should be remembered that continued deflation had depressed prices 10 to 15 per cent of what they should have been, according to ‘deac reckoning’ of those who maintain that | the increase in gold production has not | kept pace with the production and dis- | tribution of goods. Much of the pres- ent increase, therefore, cannot be re- garded as truly inflationary, but rather readjustment, he said. SHERIFF RITES HELD Special Dispatch to The Star. i SEAT PLEASANT, Md. April 20— Funeral services for Mrs. Margaret | Sheriff, 65, a lifelong resident of Mary- land, who died at her residence. 18 Chapel road, here, Sunday after a brief illness, were held yesterday. For many years she was a teacher; at the old Magruder School near | Huntsville, Md., and served two years at the District Line School here. Born in St. Marys County, where she spent her early life, she then moved to Prince | Georges County, marrying Howard Hill | Sheriff, a farmer, now retired. Besides her husband Mrs. Sheriff is ‘survived by three daughters. Mrs. Law- | rence Penkert of Washington, Mrs. Guy | | N. Skillman, Mrs. Rita Fugit, and one {sor:. W. Hall Sheriff, all of Seat Pleas- | ant. She was buried in the Mount Olivet Cemetery. ESTABLISHED 1878 58 Years in Washington In Washington---the only Sani-Purging 1gr a capital fight has shrunk * problem that will lie on the table be-|to bu Tween Mr. Roosevelt anc Mr. Mac. | tonds and then sastoey the oands Tan Donald as they talk in the White House, : from time to time Congress would be and on the table of the international | asked to appropriate money to pay the economic conference when it meets. interest on the bonds, but as the bonds derscoring | Would be put 1a &' fund. 4o Tetire the here, really constitute an underscoring WOU pul L to of the demand by Dr. Hjalmar Schacht, Dotes paid out for the bonds. president of the Reichsbank, and other — leading German economists that it is high time to re-establish normal inter- national monetary transactions. The Americhn gold embargo is re-| garded in German financial circles as a measure necessitated by the fact that the United States has stopped gold pq;gmnt.s at home. litical distrust and the economic crisis, a high financial authority said, led to irregular withdrawals of gold =t home. Logically the United States had to prevent an irregular outflow of gold to foreign countries, this commentator | sald. { The situation in America was mnald-‘ ered radically different from England' surrender of the gold standard in 1931, ! on the theory that England found her- | |rel! under inescapable pressure, while i America, if she had wished, might eas- flv have delayed measures of this kind. —[E— 'Bitui:nous-Smokeless COAL= ‘Take advantage of $R.75 | this offer and get 2,240 Ibs. of this good TON coal, cleanly deliv- ered. and save money ICE & FUEL CO. 3rd & K Sts. N.W. NA. 0990 YOU CAN'T BUY FINER BUS SERVICE THAN THIS fective right mow. Norfolk Richmond Fredericksburg Petersburg Partsmouth Suffolk Waverly Bohemia UNION BUS DEPOT 1336 New Yerk Ave. N.W. RICHMOND GREYHOUND machine is used by INKEL This remarkable machine uses pres- sure instead of rubbing; consequently there is no injury to weave or delicate coloring. All dirt is removed without any strain upon the fabric. The finest rugs, carpets and draperies are returned more beautiful than ever. All Floor-Coverings Insured Free of Charge Every Washed Rug Is Glue-Sized Without Charge LOWEST PRICES for FINEST WORK Rugs Stored in Fireproof Racks E.P HINKEL & CO. 600 Rhode Island Ave NE. G Jelephones, POtomac 172-73-74-75 that such method as inaugurated by —SERVICES— the President has its ecsential limita. tion. for he must not permit the credit to get beyond control: otherwise, the sequel would be like the man Who, ob- |serving that two pills were good for | bim, decided to take the whole box.” | olman, president of the Libert; i National Bank, predicted immediate Te: | 1 hoq Al ; | action in higher prices and said ftwould | 1" S b :;:ie r:he e egect upon salaried | TP as a reduction in salary unless Less th. s salaries were adjusted upwud.r, sz:w'o t:. 300 to to to GAS VICTIM TREATED Jesse C. Miller Later Taken to| Gallinger for Observation. | Jesse C. Miller, 37, of the 2100 bl of 1 street, was taken to Gallinger H?:‘ pital for observation late after he had been found in nynu!:::ti‘ Joupll Gawler som, lllC. ! 1750-52-54 Pa. Ave. N.W. ment with his head stuck in the oven Ne Branch Office | | of a gas stove with the turned Miller was found by another man living in the building and by the janitor. He was treated by a doctor from Emergency and taken to Gallinge: NAtion: 8512-5513 | Funeral Directors since 1850 | Chapel Cremat NEW DEAL SPECIALS Friday and Saturday, April 21 and 22 Rhododendrons 214 to 4 feet. Pink and Lavender. Cut and Burnt Clumbs with good root system. Heavy bloomers, Flame Azaleas 3 to 4 feet. Great ins! i bargai Fancy J [ each AZALEAS Amoena luml'flfllh. red) Crepe Myrtle, 65c each Lombardy Poplars, 1214 ft., 35¢ each; 3 for $1 Giant Pansies, in bloom, 57c per EVERGREE Norway Spruce, 18-24 inches. Norway Spruce, 2-21¢ feet B. Catalpa (Umbrella Tree) Cherry Laurel, 2 feet. Retinispora Plumosa, 18- inches. Retinispora Plumosa, 2-214 feet. .. ispora Squaroso, 2-21; feet. Juniper Pfitzer, 18-24-inch spread. per Pfitzer, 2-2145-feet spread Juniper Stricta, 15 inches.. Juniper Stricta, 18-24 inches. Irish Juniper, 2-21; feet. Savin Jnnlp:r, 2-215 feet. American Artborvitae, 3 feet. Globe Arborvitae, 15 inches. Aurea Nana, 18 inches Chinese Arbervitae, 3-4 feet PINK DOGWOOD, 45 feet A RARE Bargain! $149 NS (bright scarlet) 12-15” ce..$1.2¢ . 1.87 uine KOSTER BL UCE; fine specime Blue Juniper (Patented), seeee....$249; 3 1 . SPECIAL! Norway Spruce, 4-§' Beautiful specimens, $1.59. UE s, 25 Tbe, $1.50; 50 Ibe, $2.56; 10 Ibs., $4.00. ?;;;' Meal, 25 Ibs., 85c; 100 Ibs., Cattle Manure, 25 lbs., 30c; 100 Ibs., $2.50. Genuine I d G - PEAT MOSS Sotinipepeicomes o . 1% Balderson’s Washington La Seed. Mixed fi th i 4 i g S T e B T S R, 81‘7:5; 50 lbs. or over, 2S¢ per Ib. Company, ,lng_. s - 626 Indiana Avenue N.W. e Extending Through to 617 C St. N.W. "5 Set; Phones NA. 97919792 ..