550.S1 Documents/54
The American Delegation to the Secretary General of the Monetary and Economic Conference (Avenol)
The President has made it clear that he saw no utility at the present time in temporary stabilisation between the currencies of countries whose needs and policies are not necessarily the same. Such stabilisation would be artificial and unreal and might hamper individual countries in realising policies essential to their domestic problem. He urged the Conference to seek consideration of its fundamental task of facilitating policies by the different nations directly, not to temporary expedients, but to mitigating and, if possible, remedying the harassing evils of the present economic situation. In the hope that the United States may be of help to the Conference, to whose success and friendly co-operation the President continues to attach the greatest importance, it may be useful that we should develop this thought somewhat more fully.
[Page 693]The revaluation of the dollar in terms of American commodities is an end from which the Government and the people of the United States cannot be diverted. We wish to make this perfectly clear; we are interested in American commodity prices. What is to be the value of the dollar in terms of foreign currencies is not and cannot be our immediate concern. The exchange value of the dollar will ultimately depend upon the success of other nations in raising the prices of their own commodities in terms of their national monies and cannot be determined in advance of our knowledge of such fact. There is nothing in our policy inimical to the interest of any other country and we are confident that no other country would seek to embarrass us in the attainment of economic ends required for our economic health.
When the currencies of those great nations of the Continent of Europe—France, Italy and Belgium—depreciated over a period of years, there was no criticism from the United States, nor did we criticise their ultimate devaluation. And when Great Britain and the Scandinavian countries went off the gold standard there was only sympathetic understanding in the United States. Great Britain has been off the gold standard for nearly a year and three-quarters and the United States has Been off for less than three months. Nevertheless, we are glad to be able to associate ourselves with the statement of British policy made yesterday, July 4th, in the House of Commons by the Financial Secretary to the Treasury33 when, speaking in the name of the Chancellor of the Exchequer, he said:
“My right hon. Friend has on a number of occasions expressed the view of His Majesty’s Government that, although a return to the Gold Standard might be our ultimate objective when proper conditions were assured, we must reserve complete liberty to choose both our own time and parity. He does not think he can usefully add anything to that statement now.”
If there are countries where prices and costs are already in actual equilibrium we do not regard it to be the task of the Conference, as it certainly is not the purpose of the American Government to persuade or compel them to pursue policies contrary to their own conception of their own interests.
It is not sufficient to escape from the present evils. But it is our duty to consider together how to avoid their recurrence in the future. The first task is to restore prices to a level at which industry and above all agriculture can function profitably and efficiently. The second task is to preserve the stability of this adjustment once achieved. The part which gold and silver should play after adjustment has been secured would seem a further subject suitable for consideration by the Conference.
[Page 694]We conceive therefore that the great problems which justify the assembling of the nations are as present today and as deserving of exploration as was the case a few weeks ago; and we find it difficult to conceive that the view which it has been our obvious duty to take on the minor issue of temporary stabilisation can in any way diminish the advisability of such discussion.
- Leslie Hore-Belisha.↩