THE SILVER LINING

Through his latest move in the field of finance, President Roosevelt has given a good indication of his diplomatic mettle, and at the same time has very definitely strengthened the bargaining power of the United States in the approaching tariff parley with Messrs. Herriot, Bennett, and MacDonald. It was very neatly timed. With seeming Machiavellian finesse, Roosevelt waited until the European statesmen were in Mid-Atlantic, definitely isolated from home counsels, before he announced America's abdication from the gold standard. Their arrival in New York should find them considerably non-plussed.

The advantages of this move are apparent. By a renunciation of the gold standard the American dollar will fall, on the international exchange, at least temporarily and will be put in the favorable position in the world market that England now holds through similar action taken a year and a half age. With the dollar falling, Great British will be anxious to reach an agreement whereby the two currencies will be stabilized on some common basis, and accordingly will be more open-minded to a reconsideration of the Empire isolation policy cemented at the Ottawa Conference. France's position on the monetary exchange is considerably jeepardized by Roosevelt's action, since it leaves her as the sole large power still on the gold standard. She will naturally endeavor earnestly to convince America through the overtures of Herriot to climb aboard the gold standard again.

Though there is no reason to be over-optimistic about the extent of the tariff reductions which will be made, nevertheless Roosevelt's new bargaining position renders it conceivable that a quadrilateral monetary agreement can be reached to revive international exchange from its present coma. Nor is it beyond the realm of sanity to hope that the United States will be able to force a reasonable settlement of the aged war debt problem. Whatever the internal effects of the abandonment of the gold standard may prove to be, it offers a handy instrument for Mr. Roosevelt to wield at the coming conference, and one which he will undoubtedly need if this is not to be just one more parley.