The President was said at that time be considering the possibility an international conference, Germany and Italy became less egressive in Spain, Premier Van Zeeland. of Belghim was asked to make a study of how world trade barriers might be lowered, Herr Hitler told Mr. [Lansbury he was ready to ce-operate finan international gathering. The climax came when Britain announced that her rearmament programme would be financed by taxation, That proved it was not a bluff, Te the dictator countries went to war their chances of winning any advantage would be less and the possibilities of gains through the conference method began to look more attractive. The day after the ouncement was made the American market began a substantial decline.
The easiest, or rather the most! akect, method of controlling this flow of foreign money into the United States would be to take part in an International conference "and help Europe find peace and harmony. This possibility will be one of the reasons Which will bring the United States ultimately to the international conference table. But before that time arrives there are two possible methods of discouraging "hot money." One would be to lay heavy taxes on any foreign investments at the source and the other would be to check the flow of gold into the United States (the form in which much of it arrives) by offering fewer dollars for it, The gold Inflow is doubly embarrassing to the Administration because In order to prevent it adding to the credit ase they borrow money to buy it and place ina "sterilization" fund. And though the addition to the budget (the Interest rate) is no great strain, borrowing at low Interest is becoming increasingly dimeutt,
Text read from the printed page and cleaned; old type leaves the occasional error.