Evening Star Newspaper, October 1, 1936, Page 7

* tion of the franc is the most impor- . might be written in terms of the | *“deflation” - clear that the French government * ment has an effective instrument for © should be comparably less than it " above its natural level because many who anticipated a devaluation of the - 5o bma s s € o sV ~ TRANC GOLD CUT SEENWORLD A ‘British Economist Believes Devaluation Will Speed Up Recovery. The significance of devaluation of the French franc, marking a milestone in the post-war economic and political history of the world, s discussed here by a distinguished British economist, who was for 11 years director of the economic and Anancial section of the League of Nattons. On a visit to the United States a few months ago, he deliv- ered the Jonathan Peterson Founda- tion lecture for 1936 under the aus- pices of the League of political education in New York City. BY SIR ARTHUR SALTER. By Radio to The Star. LONDON, October 1.—Devalua- tant economic event since that of the dollar, nearly three years ago. If it is carried through successfully, it may prove the best thing that has happened of any kind in that period. For the history of the post-war world, political as well as economic, changing values of currencies, nr_st inflation and then deflation, in turn, spreading economic distress and bringing inflammable political pas- sions near the flash point of explo- sion. It was in 1930, after the onset of the world economic depression, that international relations, which had been improving since 1925, began to deteriorate, and it was in 1932-33, after the world financial crisis, that the more dangerous political forces developed their full strength. And, in these events, we are certainly right to see a relation of cause and effect. Broke System in U. S. 1t would indeed be true to say that has been the principal agent in the most important events of yecent years. It broke the banking system in the United States, it trans- formed the political situation there and in Great Britain and it brought German economic distress to a point at which it provided the material for the Nazi revolution. It has been the main cause not only of economic trou- bles but political stress in France. When, as an alternative to chaos and wild fluctuation in exchange or the rigors of deflation, great coun- tries have chosen a new gold parity for their currencies, their choice of new parity has not hitherto been well made. In 1925 the pound was cer- tainly overvalued at $4.83 and con- sequent deflation caused a general strike and, in the end, a fall of the pound in 1931. The franc was | undervalued by Poincare and new | external dislocation followed. So, too, the dollar was certainly under- valued at the beginning of 1934 and all “gold” countries were adversely affected as they had been by the de- preciation of sterling. Corrective Devaluation. Will the present French operation | be more successful? There are, hap- pily, strong reasons for belleving so. The range within which the new gold parity will be fixed has been indicated, although the exact point has not yet been fixed, and it is has carefully decided upon a “correc- tive” devaluation, which will merely remove the previous disharmeny be- tween prices and the gold value and is not attempting to snatch a com- petitive advantage ir external trade by putting the new parity too low. Even more important is the fact that this has been recognized by the American and British treasuries and that the three equalization funds will | co-operate to mitigate and, if possible, | prevent disturbance arising from operations inspired by either fear or | greed. | Assurance of this co-operation will | greatly assist Premier Blum in wha is still a difficult task, that of bring- ing the franc safely to anchor at ite new parity. Until a few months ago, orthodox economic and financial | opinion, the rentiers and most of the forces constituting the right were bit- terly opposed to devaluation. They, however, have been converted. More serious now are the fears of those who have recently secured improvements in their wages and hours of work that devaluation will rob them of their gains by causing an increase in the cost of living. Has Effective Weapon. These fears were at first reflected in the proposal to make a wage slid- ing scale a legal obligation. This pro- vision has been deleted, but renewed pressure must be expected if the cost | of living does, in fact, rise greatly. Some prices, for example those of manufactured articles for which -the franc cost of raw material will be higher, must rise. But the govern- keeping down the price of necessities, especially food, in its power to reduce tariffs and increase quotas. Co-operation in the use of the equal- {zation funds of course requires some understanding between the American and British authorities as to the ratio between the dollar and the pound to be aimed at—though it may allow a certain elasticity and be subject to later variation. There may be some difficulty about this, although this would have been some years ago. ‘The pound has recently been pushed franc used sterling to make a profit or to avoid a loss. But for a very long period the actual rate has, with rare exceptions, been fairly stable. * And, LUMBER i, repairing. touch wi Frans Kolly " hes “The Family Lumber Yerd” An estima experienced it b n: 4 oo -nn.n-_ LUMBER-MILLWORK happlly, the disastrous effects of com- petitive currency depreciation are now universally recognized. Would Erase Fears, 1f all goes well, the results to world recovery may be of the greatest im- portance. Uncertainty as to the franc has weighed upon the world for years. All the most important impediments to world trade, whether in the form of new tariff quotas or exchange re- strictions, are mainly due to currency fears. It would be now possible, as a future step from the co-operation al- ready announced, to reach a form of conditional stabilization, first between the great. currencies and then includ- ing others, which would secure a sta- ble exchange for long periods while still allowing for a corrective change in ratio if that should be necessary to save a country from being compelled to resort to a deflationary policy. And & recovery in foreign trade is what is now most needed. In all the more fortunate countries, internal recovery based on expansion of the home market has made great strides. It is indeed reaching a point beyond which further advance will be much more difficult. But the volume of external trade, though showing some slight signs of improvement, has 50 far been almost stationary. Many things are indeed required before world trade can recover its normal proportions. Tariffs, quotas and re- strictions need to be removed or re- duced or so transformed as to permit an increase of imports; the machinery of foreign lending needs to be re-es- tablished on a more modest scale but on a more secure basis than before; and, above all, international relations need to be improved and confidence that-the world will not be plunged into another great war must be restored. Political Danger Remains, But in all economic policy a great~ er measure of currency stability by means which do not involve danger of enforced deflation is the first step; and it will help, and indeed is per- haps the indispensable first condition of the other forms of effect. This n! of immensely greater importance for both American and British exports than the few incidental losses some of | them may suffer for the moment from | the removal of the franc's competi- tive disadvantage. The political danger, of course, re- mains. We cannot as yet tell whether statesmen will be successful in con- trolling the present dangerous political forces. All we can say is that, just as their task would have been much less difficult if there had been no world depression, so it certainly will be made much easier if there is now a world recovery. *Cepyright. 1936. by the Noruh American Newspaper Alliance, Inc.) FARM PHIC.ES STEADY Reported to Maintain Relatively High Level. The Agriculture Department re- ported yesterday that prices received by farmers for their products on Sep- tember 15 “held steady at the rela- ivelyt high level established under drought conditions in mid-August.” September prices were said to be 124 per cent of pre-war or exactly the | same as on August 15 and 17 points | higher than September, 1935. THE EVENING STAR, 15 NAMED TO TAKE U. S.-ORIENT FLIGHT Fairbanks and Wife Among Those to Make ' Pan-American Inaugural Trip. By the Assoclated Press. SAN FRANCISCO, October 1.— Pan - American Airways yesterday announced a list of 15 persons who will take part in the inaugural pase senger flight on the trans-Pacific air Toute between San Francisco and the Orient. Listed as passengers are Douglas Fairbanks and his wife, the former Lady Sylvia Ashley; Thomas H. Beck of New York, president of the Crowell Publishing Co.; R. F. Bradley, San TUBE ‘The “feel” of tuning a Zenith is entirely different from ordi- nary radio. Just try tuning any other radio—then come in and tune with the fast finger- - tip Lightning Station Finder. There is no comparison! Just as there is no comparison be- tween a Zenith —and other radio. We invite you to find this out for yourself. Other Zenith Models as Low as $29.95 Francisco Standard Oil executive; T. P. Ryan, 8an Prancisco aviation exece utive; Mrs. Clara Adams, Stroudsburg, Pa, lecturer; Dr. Bolivar Falconer, Texas oil operator, and Col. Charles E. Bartley, Chicago, wholesale grocer. The others named are residents of Honolulu and Manila. The company announced the first flight, to start October 21, would be an all-expense “air cruise.” The fare was not stated. The com- pany said several months ago it probe ably would be about double that of standard steamship rate, or about $1,200 to Manila. Wage Rule by Courts. Military courts in Greece will en- force agreements between the govern ment and employers which will estabe lish minimum wages for both indus- trial and office workers. = LS . e vl Lo A Long Time to Pay Gets Any Station With the Flick of a Finger. 717 12th St. N.W. Nat. 7171 e OPEN EVERY NIGHT e LAST 2 DA By making your selections before this Sale end on Saturday night you will profit in three ways: (1 sell direct from our warehouse, our prices are always lower. saving. (2) Living Room During this Sale our warehouse prices are further reduced. Another saving for you. ) Because we You get this save. (3) All Bedroom S Moses’ 76th September Furniture Sale You Will Profit Three Ways by Buying Your Furniture Before Saturday Night furniture manufacturers have increased their prices from 5% to 15% and more since this Sale began. prices are based on the manufacturers former lower prices to us. Again you Choose your furniture before Saturday night . . . and get these TRIPLE SAVINGS! Our sale ] Studio SUITES|SUITES| COUCHES Reduced to 119 Were $175 to $225 A GROUP OF Reduced to $ 99 Were $158 to $198 INNERSPRING . Reduced to 52 6 .85 Were $39.50 A GROUP OF TABLES |MATTRESSES| CHAIRS Reduced to $6.95 Were $9 to $15 Reduced. to $‘l 4.95 Were $19.75 Reduced to Were $32 to $48 Use Our Budget Plan Take 12 Months to Pay When Purchased on Our 12-Month Budget Plan, a Small Carrying Charge Is Added W, B. Moses & Co. Plenty of peicny of 804 Rhode Island Avfe.N.E. No Treffic Delgys WASHINGTON, D. T, THURSDAY, OCTOBER 1, 1936. Village on Way to Be City. is granted the right to carry out a $12,500,000 hydro-electric project in From a mere village Corpach, in the | Inverness-shire. A factory to manu- Scottish Highlands, will become 10 | facture calcium carbide is to be times its present size if a corporation | started in Corpach. > [+ aza aza = & = a = &= = ) ANO UP go the little runs, when you kneel, when you bend, when you stretch. But NOT if you're wearing FIT-ALL-TOPS.* They're knitted to stre-e-e-ich instead of pop. So sheer, they're just a ghost of a stocking. But they'll out- wear pair after pair of ordinary hose. (They're Mir- O-Kleer*) PLAIN TOP 79¢ UP HOSIERY nille_loin Bl ng Gl & MILL END SHOP 931 F Street Opposite Metropolite: Theater 52 Very Special for This Week End Bargains in drapery and upholstery materials that you have use for right now. A Wonderful Showing of Tapestries, Silk Damasks, Cotton Damasks, Broca- telles, Velours and o host of the other high-grade upholstering materials that the finest decorators use—and that you will find only et the Mill End Shop. We are favored to buy them ot a fraction of the produc- ;m;n cost. Wa PASS THE SAVINGS ON TO YOU. efore you buy upholstery and drapery materials see the advant: in VALUE, VARIETY and PRICE you will Kave in making s:iocfio’:nh:?:. Printed Chintzes Linens for Drapes, 36-inch Chintz that the Mill End Ete. Shop brought to Washington and The assortment includes per- has mode fomous. There are selections from the finest deco- fect bolts of “dropped” patterns —every one of which is suitable rating houses in the country and are here in sufficient quantities. for upholstering and draping. Choice. 7gc to meet any requirement. zsc Yd. Yd. Formerly 45¢ to 98¢ yord. 50-inch Linens—Short 59= 50-inch Chintzes lengths up to 6 yds. 9 36-inch Drapery Oiled Silk For Drapes, Shower Curtains, Rain Coats, etc. 50-inch Drapery Black, blue, brown, purple, yellow, red, green, rose—the precise quali- Upholsury ties that sell at 7! 49 to 88c __ — c Yd. Friezettes 54-inch Cotton Friez- ettes, rust, green, blue, brown 54-inch Rayon Friezettes 89c Yd. 36-inch Cretonnes—guaronteed You Get the Best for Less at the Mill End Shop BIG MAN-SHORT MAN ourwaxTHIN MAN @ YOUR CHARGE ACCOUNT INVITED The RALEIGH CAN FIT YOU! SLENDERIZER Tailored by HART SCHAFFNER & MARX Hard-to-fit men, set your mind at ease!_ For here at Raleigh Haberdasher you'll find a com- plete selection of clothing that really fits! We have every size represented here from suits for men who are 5 feet 5 inches short to styles for men who are almost a foot taller. Big man—Short man—Thin man—Stout man, Hart Schaffner & Marx Slenderizer suits, because they’re scientifically tailored, give you the best possible appearance no mat- ter what size you need, no matter how tall you are and no matter how substantial is your stature. And stripes, particularly the new Hart Schaff. ner & Marx Cheerio Stripes, are particularly adapted to men whose builds are shorter than the average. Ask to see our famous *Slender- izer” model in these smart new cluster stripes. *35 ~ *60 @ PARKING SERVICE AT OUR ,CURB RALEIGH HABERDASHER 7/1/444[,7&” PR S it A él_m 1310 F STREET