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Organization of Production & Trade.
That list blocks out the chief talking points for the forthcoming face-to-face discussions at the White House. First concrete objective is some new standard of international exchange to stabilize nighty currencies. The Roosevelt Administration, unlike the Hoover Administration, sees no quick return to an all-round gold standard. Yet last week the Bank of England's gold reserve reached $885.000.000, an all-time high, which pointed toward some sort of de facto stabilization of the pound—provided the dollar is not devaluated. The currency situation upsets normal trade channels because of a low-currency country's ability to flood a high-currency country with cheap goods despite towering tariffs. Much will be said at the White House about this unfair method of international competition. The Agenda Commission, rejecting bimetallism, recommends increased subsidiary coinage of silver—a recommendation that started rumors that the U. S., Britain and France were to buy $1,000,000.000 of silver for that purpose.- Speaker Rainey, a silverite. ordered all silver legislation shelved in the House on the ground that the World Conference alone was able to deal with the issue.
Goods and Tariffs. Oil and wheat got into last week's news as commodities the world production of which the London conference might attempt to limit. The U. S. Farm Relief Bill, now before the Senate, looks to a cut in domestic wheat-growing which may set an example at London. Major oil producers met in Washington fortnight ago, recommended action to the White House which would hold the U. S. flow down to 2,000,000 bbl. per day. Many have been the conferences between producers of copper, nitrate and rubber during the last several years in vain attempts to control output, raise prices. At London such attempts may become accomplishments.
Admitting, even charging, that the world was led into economic war by the tariff policies of Presidents Harding, Coolidge and Hoover, President Roosevelt hopes to lead the world to economic peace by his tariff policy. The Agenda Commission in its report flayed attempts at national self-sufficiency ("all seek to sell but not to buy"), manifested in retaliatory tariffs, embargoes, import quotas, export subsidies, and exchange restrictions which "throttle business enterprise." First objective at London is a tariff truce against more rate uppings. After that, attempts will be made to weed out such quota restrictions as Austria puts on tires and shoes, Belgium on sugar and silk knit goods, Germany on lard and butter. Last week France, sensing a turn in the tide, planned to lift quota restrictions on U. S. radios, asparagus, apples and pears—a move strongly backed by the French wine interests with eyes fixed on the U. S. market after Repeal of the 18th Amendment. The London Conference will not discuss specific rates but its prime purpose will be to stabilize tariffs so that exporters will know what they are up against from month to month, year to year.