This leads us to the second inter-the future, near International stability on a gold basis seemed th {o be out of the question, Stabiliza~ tion efforts would be premature until the majority of nations were able: "to produce balanced budgets" and. "live within their means." Moreov: sold the President, the. world. wilt not long be lulled by the specious. fallacy of achieving a temporary and. probably artifial stability in foreign exchange on the part of a few large countries only. But now that which had once been a specious fallacy is put forward as.a practical policy, all are Invited to Join, "Porgotten Man" Financier The United States Administration has sown its financial wild oats, and the agricultural professor, Geori Warren who supervised their sowing has become the forgotten man of the Administration and has returned to his lectures on farm management st Cornell University, Mhieo, New York, Belief in the: wonder-working properties of monetary manipulation is no longer part, of the New Deal credo, Mr, Cordell Hull, Secretary Biate, who throughout the painful period when monetary orthodoxy was cardinal sin stuck rigidly to his belief in the need for stable currencles, has at last been vindicated. Both President and general public "have adopted his point of view. No cries were raised when the Treasury made announcement that the dollar was being "placed in vassalage to the: pound." Congressmen did not leap. into print with statements that they were "being deprived of their Con stitutional right "to coin money. rage tulare the value thereof and of foreign coin." They had it is true ilyen the President power to devalue esting aspect of the monetary agreement. The three big democracies of the world formed a united front and assumed a position of joint world leadership. Germany and Italy under their dictatorships, which had appear menacing when political questions were being considered and. which to all appearances had seized the "initiative from other European. powers were suddenly thrust into the background. Their position appeared be one of loneliness, weakness and Isolation. They certainly could assume no leadership and the course, which they followed was one of complete indifference to the three chief democracies of the world and the Scandinavian, South American and other countries which were associated with them.
The day after the "gentleman's agreement" had been reached the United States had an opportunity to show that she was not a silent but dominant partner in It. The Soviet State Bank ordered the Chase National Bank (its New York agents)
sell £1,000,000 "at best," the tech-feal term for "at any price." The order was made just after an agreement for currency stabilization had been reached In which it was hoped that no country would seek to ham per the efforts being made to establish exchange equilibrium—its result was to send down the price of sterling, The Treasury immediately stepped in with its Stabilization Fund, bought all the pounds which' the Soviet Government offered and returned the sterling exchange rate {o its former position,
Text read from the printed page and cleaned; old type leaves the occasional error.