Dollar Devaluation and the Sequel: Exposition of Present States of Money Market the inatigati of a vulned reader who ined the faring cone iked for calightenment the, present, gold witwation thie Shpreciation. which, it is. Roped, jasraat han eof "general intereat" to lagen pundit all grecian 70 THe oe There must be many persons who have tried to follow the course of world monetary events during the Past year or so and who in the end can only frown and scratch their heads in bewilderment. Great Britain was forced off the gold standard in Sept ber, 1931, and at one. time to 38 than U.S. $3. to relinquish the gold standard, the pound was quoted at US.5.00, mot eng What is It all about, and where Will this uncertainty end?
Tt, is @ complicated matter, impossible to, explain in a few simple Bontences, but it may be helpful to set, down a few of the prin cipal considerations that, appear to have brought about the present disorganization of the international exchanges and to suggest one or two of the factors that may be expected exert the most direct influence in determining the course of monetary: feventa in the near' future, The Pre-War Gold Standard In pre-War years, when almost the whole napa worl wan linked ether by the gold or. gold ex-¢hange standard, economic. maladjustments in various countries were largely rectified through the normal operation of the gold standard procedure, assisted by a real sense Of international responsibility in the large creditor" countries, Gold movements and changes.' in the official discount rate were the usual method of correcting a nation's adverse balance of payments, and atween them they provided a useful corrective of deviations from the world price level, The economic system was then less rigid than it has since become; wages and work evelt to create a feeling of distrust fature value of the dollar. has now of the dollar-at a tate of 89.06 per cent. ofts original gold content, and he fas removed. the embargo' on the export of gold. Thus America has ow apparently. adopted a. gold ialtion" standard of eurveney, "but the President. hag. reserved" the ight to modify the arrangements he has made if elreumstances should
"American gold-buying policy won neceae this ato. fas auch fs. discarded, though the Pxchange Fund will almost certainly have to buy gold in large amounts it lets intended that the dollar shall be maintained at its present. inter jehol exchange valu, 'The' Portance attached to this aspect Moliay devaluation has, however, set seen.
Wher Great Britain left the xold standard i wax asserted, and pro-that stseling wae other old position, and. the widespread disturbance caused her action in abandoning Kol seems unlikely that Great Britain return that ie at all Tikely
welts rejection of the scheme an} Monte he manner of Mr. ion negotiated at the rule Conference last veal With the feeling of distrust eugen dered by his frequent, changes of plan, may prore a serious obstacle of depression tion was not subject to so. many restrictions. For) a number of reasons the operation of the gold fandard since the War has proved uch loss satisfactory, but, in addi jon, the mew technique of central Danking has tended to conceal from ublic view the accumulation of Inaneial weaknesser in various gauntries, 0 that, when. eventually the crash came the results were all the more disastrous. change stabi Future.
A question that is naturally being. asked with regard to the devaluation of the dollar is whether Mr. Roosevelt's decision has been taken entirely without" previous con-Aultation "with other countries for whether he tas received from" Europe such assurances, og would be like to make Liis new decision effective and
Text read from the printed page and cleaned; old type leaves the occasional error.