Oakland Tribune from Oakland, California • Page 1

Exclusive JAssociaicd The tram OAKLAND AND VICINITY Fair tonight and Friday but overcast late tonight and early Friday; moderate temperature: gentle, west winds. Temperatures yesterday. 58, mln. 49 RAINFALL AT CHABOT. 24 hours ending at 7 a.

00 Season to date 14.30 Normal to date 21.91 Last year to date 23.71 CorooVulalcd Press Association VOL. CXVIII THREE CENTS, SUNDAY TEN CENTS OAKLAND, CALIFORNIA, THURSDAY, APRIL 20, 1933 30 PAGES NO. 110 -A 1 tA 1 Bay Bridge RUTH SANE NEW SETUP Texas Killer Traded for Mexican in Pardon Pact Inflation Moves Designed To Meet Foreign Trade War, Says Rainey; Stocks Rise One To Nine Points SAYS 0 FOR CENTRAL BANK LIKEHED U. S. Dollar SI umps in Other Lands HUGE ORDERS ROOST MANY LEGISLATION IS PREPARED TO UPHOLD PRESIDENT Oil STABILITY FOR CURRENCY on Measure to Give Power to Regulate Aid American Credit Administration Agrees Roosevelt Supreme Value of Money and CHEAPER DOLLAR, WASHINGTON, April 20.

-(P) Speaker Rainey told newspapermen today. President Roosevelt's monetary moves were designed to meet a "concerted and planned" campaign by foreign nations to beat down the United States comrrlercially. A draft of the proposed "controlled inflation" amend ment to the farm bill was completed by Democratic leaders late today with a provision for authorizing new currency up to $3,000,000,000. Roosevelt would have the power to direct issuance of the supplemental currency. By LYE C.

WILSON United Press Staff (Correspondent WASHINGTON, Aprjf -Legislation authorizing cur-; rency inflation and giving president Roosevelt supreme' power to regulate the yalye of, American money has been approved by the President, aricj today awaits introduction in Congress. Administration agreement on the measure came swiftly after it had cut the dollar loose from the gold standard as the Bond Sale Is Approved by State Court Issue by Authority Docs Not Constitute General Obligation, Justices Hold The California Supreme Court by a unanimous decision today approved the legislation creating the Stale Toll Bridge Authority and empowering it to issue revenue bonds to finance the construction of the San Francisco-Oakland Bay nrwige. The decision, written by Chief Justice William II. Waste and concurred In by all the other members of the tribunal, was handed down, in a friendly suit brought by the bridge authority to com pel Earl Lee Kelly, State director of public works, to sign $650,000 of the revenue bonds. The suit was the outgrowth of negotiations whereby the Reconstruction Finance Corporation agreed to purchase $61,400,000 of a bond issue of $62,050,000 on condition that the remaining $650,000 be sold elsewhere to reimburse the State for money advanced for preliminary work.

Kelly, as a part of the test, refused to sign the latter block of bonds alleging that they would constitute a general obligation of the State. The State constitution limits the amount of indebtedness which may be incurred without the direct approval of the people. In its decision today the court said: "While the practical effect of the plan may be to impose a burden on certain special funds of the State to protect the State's outlay on the construction of the approaches to the bridge and for the purpose of maintenance, operation and insur ance of the structure, it does not result that the bonds will be general obligations of the State in any sense "It seems clear that the statutes involved, providing for the building of approaches and the maintaining, operating and insurance of the bridge, contemplate the present appropriation of money out of spe cial funds now in existence; the highway construction fund and the State highway maintenance fund; and- for this additional reason do not in any way Involve the creation -of an indebtedness or the pledging of the credit of the State. BEGINS SUNDAY Santa Fc to Start Running Into Oakland Mole and Abandon Ferry Service The first move toward consolidation of transcontinental railroad service in the Eastbay will be accomplished on Sunday when the Santa Fe Railroad starts operating its trains over the Southern Pacific mole, it was announced today. Officials of the Western Pacific said they were engaged in preliminary work toward transferring their transbay passenger service to the same terminal, but could give no definite date as to when the consolidation would be effective.

Permission for both the Western Pacific and Santa Fe to use the Soulhern Pacific mole and ferry service for passengers, express and baggage was granted April 1 by the Interstate Commerce Commission. POINT RICHMOND FERRY LINE TO BE ABANDONED. Under the consolidation program the Santa Fe will abandon its ferry line between Point Richmond and Sail Francisco, turning over to the Southern Pacific the ferries San Pablo and San Pedro, which it now operates. Its passenger lines will be routed into Oakland via Richmond over its own tracks and transfer to Soulhern Pacific trackage just north of the Sixteenth Street station of the latter company. Under its present operating plan, the Santa Fe maintains a station at Fortieth Street and San Pablo Avenue in Oakland, but trains running from that point must switch and back up.

to the ferry terminal in Richmond to take on passengers direct from San Francisco. WESTERN PACIFIC TO GIVE UP FERRY-BOAT. The announcement issued today by T. A. Rigdon, division passenger agent for the Santa Fe, merely said: "Effective Sunday, April 23, the Atchison, Topekr Santa Fe Railway will operate from the Oakland pier, and after that date all trains will start and finish their schedules in Oakland." According to the plan submitted to the Interstate Commerce Com mission, the Westetn Pacific also proposes to abandon its transbay passenger ferry service, turning over its boat, the Feather River, to the Southern It proposes to operate its passenger trains over its own tracks 'to the foot of Chestnut Street and then over a new extension to the Southern Pacific main line and to the mole.

Some 500 feet of new trackage must be built Work has not been started yet. The Western Pacific and Southern Pacific last December asked for a franchise for the extension but City Attorney Stanley C. Wood advised them that no franchise was MERGER AT Murderc'ss Is. Suffering 'Neurosis of Says S. F.

Psychiatrist Condition Would Change If Hanging Is Blocked; Svmutoms Simulated FLORENCE. April 20. fP) Testifying for the state. Dr. Jo seph Catton, San Francisco psyclu atrist, said in a report submitted today in the sanity trial of Winnie Ruth Judd.

confessed slayer of two women friends, that he believed "such neurosis and psychosis" as may exist in the condemned woman does not satisfy a legal definition of insanity. The young woman is suffering, he asserted, from "neurosis of the condemned," made up "in part of conscious simulated symptoms" and in part "of mechanics beyond the control of Mrs. Judd." It would "relatively promptly become ameliorated," he said, were she to be granted commutation of sentence. LEGAL TEST IS OF INTELLIGENCE The legal definition of insanity by which the lunacy jury in deciding whether the blond young woman is in a mental state lawfully to be hanged for murder of Agnes Anne Leroi must be guided, presupposes inability to comprehend the fact of the death penalty or reason for it, and inability to inform counsel intelligently of any facts which might act as a bar to execution of sentence. "In this 'respect," Dr.

Catton said in his formal report as presented to the jury, "I am bound by the factual statements which have found their way into the record, rather than following what might be my personal wishes in regard to a statement of Mrs. Judd's condition." BASES CONCLUSIONS ON TWO TRIALS The psychiatrist said he based his conclusions both on observation of Mrs. Judd during the present sanity hearing, and on information obtained at her murder trial in Phoerix last year, at which time he found her sane. "It is my opinion, beyond a doubt," Dr. Catton told the jury, "that this subject is not suffering from dementia praecox, in any of its forms.

"Certain of Mrs. Judd's symptoms," he said, however, "if believed to be truly present, must be considered 'psychosis' or insanity." FLORENCE, April 20. (UP.) Contradicting defense alienists. Dr. O.

E. Utzinger of Ray, testified today at Winnie Ruth Judd's sanity hearing that the condemned slayer is sane. Dr. Utzinger said that when he examined Mrs. Judd in her cell at State prison here he found her responsive to all questions except those concerning her case.

This responsiveness indicated to him she was sane, he related. The physician concluded his recital with his observation that "Mrs. Judd is malingering because she has a normal mind." F. J. Heney Sues for Being Put Off Train LOS ANGELES, April 20.

(U.P Superior Judge Francis J. Heney, former San Francisco attorney, suffered permanent injuries when a porter put him off a railroad train at the wrong station on a cold winter night last February, he charged today in filing suit in Federal court for $55,000 damages against the Pullman Company. The jurist was en route to Palm Springs to recuperate from an illness, he related in his complaint, and asked that he be notified when the train reached his destination. Instead, he said he was awakened and put off the train in the desert, an eighth of a mile from the Banning station. Planes Horsemen Hunt Lost Pilots WINSLOW, April 20.

(P) The search for Carmel Giragi, Winslow publisher, and Jack Irish, aviator, missing since Monday when they took off from here in an airplane for Phoenix, centered today in Long Valley, south of Pine, where ranchers said they had seen a low-flying plane. As no trace of the men was found today, forestry officials despaired of finding the two men alive. The search for the missing men will be conducted today from the air by two army bombing planes if weather conditions will permit. Nearly 100 searchers on horseback have been concentrated in Long Valley. Lindberghs Land At Harrisburg, Pa.

HARRISBURG, April 20. (U.R) Col. and Mrs. Charles A. Lindbergh landed their Lockheed Vega monoplane at the Harrisburg airport 'today at 3:20 p.

Long I Appointed Ambassador to Italy WASHINGTON, April President today named Breckinridge Long of as ambassador HEARING Youth Who Slew 'Slayer' of Father Freed of Crime in 'International Exchange' EL PASO, April 20. (IP) Climaxing one of the strangest murder cases in Mexican border history, William Jefferson Meers, American youth once sentenced to death for shooting a Juarez waiter, was exchanged at the Inter -national Bridge here today for a Mexican v.ing a life sentence in Texas for another killing. Pardoned by the Gov- w. j. merrs.

em or of A. P. photo, i ahua In accordance with the exchange agreement. Meers was brought here by automobile from Chihuahua City. Mexican officials took him to the middle of the bridge at 3:20 a.

m. (M.S.T.) where the party was met by Sheriff Chris P. Fox of El Paso County, the Mexican prisoner, Jose Carrasco, and Meers' wife and mother. BOTH MEN, FREE, RETURN TO HOMES. Meers and Carrasco shook hands and then returned to the countries from which they had been absent for years.

Carrasco had been in the El Paso County Jail since last July. He was brought here by two Texas Ransers and his pardon was signed by Ross S. Sterling, former Gover nor of Texas. A tragic mistake growing out of his desire to avenge the murder of his father led Meers to shoot an innocent waiter, Antonio Visconte, in 8 Juarez saloon, July 18, 1930. His father, W.

H. Meers, was slain in a gun fight between five Mexican bandits and special officers guarding an $18,000 payroll in El Paso in March, 1924. In that affray an innocent bystander also Was killed and several persons were wounded. Three of the bandits were captured. From that day young Meers vowed to ascertain the identity of his father's slayer.

By haunting border resorts and questioning Mexicans he thought might know, he finally learned that a desperado, Manuel Villareal, was responsible. PRACTICAL JOKE HAS FATAL ENDING. Meers' persistent efforts to locate Villareal resulted in a practical joker telling him that his father's slayer was a waiter in the saloon where he and a friend were drinking. Calling the man over to the table, Meers drew an automatic pistol and shot him six times at close range. Then Meers was informed he had killed the wrong man.

Friends of Meers in El Paso, where he had worked as a railway clerk, had been trying to help him out of his predicament but little could be done. After a time the idea was conceived of exchanging Meers for the Mexican prisoner, Carrasco. Carrasco had been tried and convicted of murder for the El Paso payroll holdup shooting. He was sentenced to death by a jury that deliberated but 12 minutes. The case was appealed and his sentence changed to life imprisonment.

Through an agreement with Texas authorities the trade was arranged. Hot Needles Driven Under Fingernails to Make Her Give Up Jewels, Watch SAN MATEO, April 20. (U.P.) Pushing red hot needles under her fingernails to force her to unclench her hands, three men tortured and robbed Mrs. B. F.

40, peninsula society woman, escaping with $5000 in jewelry early, today. She was driving on Bay-shore Highway, returning from a horse show, when the "ruffians forced her to stop her car just north of Burlingame. They climbed into the machine and demanded her money and jewels. When Mrs. Feeney began fighting and clenched her fists to prevent the men from removing her diamond rings, one of the robbers clamped his hand over her mouth and the other two tried to pry open her hands.

Failing in that they heated needles in the flame of a cigarette lighter and stabbed Mrs. Feeney under the, fingernails until unable to endure the pain any longer, she collapsed and opened her hands. Her assailants roughly tore1 the from her fingers, lacerating them, and took a jeweled watch. They escaped in an automobile. Mrs.

Feeney was taken to Mills Memorial Hospital where she was said to be in serious condition from shock and injuries. THUbSTDRTURt ROB S. JDMAN Savings Institution Capital Enlarged; Name Changed; Unrestricted Base Monday 70 of Old Nat'l Deposits to Be Available; Institution Acquires AH Good Assets By L. D. CLARK, Financial Editor or The Tribune Approval of, the plan by which the Central Bank situation wilU.be clarified and an institution, under the name of the Central Bank of Oakland, will open for business Monday, was voted late yesterday by the stockholders of the Central Savings Bank.

This action followed close on receipt of word by A. J. Mount, president, and T. A. Crellin, executive vice-president, that the Reconstruction Finance Corporation had subscribed $3,000,000 to preferred stock in the new bank.

All restrictions upon business of the Central Savings Bank will be removed with resumption of normal business Monday. 70 PER CENT OF DEPOSITS MADE AVAILABLE. A vital part of the financial setup of the Central Bank of Oakland will be the purchase of the sound assets of the Central National Bank, which was not reopened after the termination of the banking holiday. The concurrent action will be to make available on Monday 70 per cent of the deposits in the Central National Bank to depositors in that institution when it closed. The balance, or 30 per cent, will be de- ferred pending the liquidation of frozen assets, which will continue to be under the charge of A.

L. Mount, the conservator representing the Comptroller of the Currency. Approval of the change of name from the Central Savings Bank to that of the Central Bank of Oakland was formally voted. So also was the change in pital its enlargement. Securing of membership, in the Federal Reserve System is being negotiated.

SOUND ASSETS ARE TAKEN OVER. The purchase of the sound assets of the closed national bank was effected through the cooperation of Federal and State authorities. The management, through Mount and T. A. Crellin, executive vice-presi dent, were particular in specifying that "only those loans, securities and other assets of Central National Bank which of themselves are un questionably sound" were taken over.

All of the secured deposits of the old Central National will be avail able to the extent of 100 per cent on Monday. These deposits are those of municipalities and others, secured by the posting of bonds. The trusts and other fiduciary de ftosits, of similar character in the old national will also be available In full. The new bank, the officials state will handle commercial, savings, trust and administration of estate departments as well as its safety deposit vault. Under the new set up the capital funds of the Central Bank of Oakland will total $6,500,000.

U. S. WILL BE HEAVIEST STOCKHOLDER. When the banking holiday ended Central National was not reopened, and A. Mount was placed in charge as conservator by the Comptroller of the Currency.

The Central Savings Bank, however, was opened upon a restricted basis and has been functioning since that time on such a basis. Negotiations with the Reconstruc tion Finance Corporation, the Federal Reserve System, and State authorities, have been steady since (Continued on Page 2, Col. 6.) Writes on. 'The Question of Today's Tribune Subject Page Amusement, Theaters 24 Aviation 12 Classified Ads 27 Comics 23 Cross Word Puzzle 22 Culbertson Contract 22 Editorials .30 Editorial Features 21 Fiction .22 Finance 20 Geraldine 22 Marine .17 Minute Mysteries 6 16 Radio ...13 Society, Women's Events 1 6 Sports 1 7. Vital Statistics r.v 29 "i i ri i i LIPPMAMn MAGAZINE SECTION NEW YORK, April 20.

(IP) The American dollar, no longer, tied to gold, today continued its precipitate fall in terms of foreign monies. Sterling cables opened here at $3.89, an overnight advance of 19 cents. French francs rose approxi mately one-fifth of a cent to 4.44 cents, while Dutch guilders soared 14 cents to cents and Swiss francs jumped nine-tenths of a cent at the. opening to 21'i cents. The Reichsmark was up slightly more than a cent, its initial quotation being 26 cents, and Belgas rose nearly half a cent to 15.70 cents.

Canadian dollars opened at' 89 cents, up two cents. Reichsbank Quotes Mark at 25.64 Cents BERLIN, April 20. (IP) The Reichsbank fixed the American dollar today at 3 marks, 90 pfennings. The quotation of 3 marks, 90 pfennings to the dollar means that the mark is worth approximately 25.64 cents. The close on the dollar in Berlin yesterday showed a mark valuation of 24.75 cents.

Dollar Rate Drops Schilling in Vienna VIENNA, April 20 WP) With the newspapers printing British reports from Washington to the effect that the United States is entering currency inflation, travel agencies and banks today reduced the dollar rate to 8.2 schillings. Tuesday they were paying 9.2 schillings. Pound Fluctuates On Manila Exchange MANILA, P. April 20. (U.R)-The English pound sterling fluctuated between 7.62 and 8.20 pesos ($3.81 to $4.10) in limited transac tions on the foreign exchange here today, 13 Pet.

Premium Quoted By Toronto Banks TORONTO, April 20. W) For eign exchange departments of banks in Toronto today quoted the United States dollar at 13 to 13Vi per cent premium. At yesterday's close the premium was I6V4 per cent. Dollar Worth 17.50 Lire at Rome Figure ROME. April 20.

(U.R) The American dollar closed at 17.50 lire in foreign exchange today. It closed yesterday at 19 lire. U. S. Dollar Worth 4.70 Swiss Francs BERNE, Switzerland, April 20.

W) The dollar opened at 4.70 Swiss francs today on the exchange. Governor Allows Time for New Evidence in Case Of Jack Green of L. A. SACRAMENTO, April 20. In order to allow his parents time to present new evidence, Jack D.

Green, 30, condemned to hang tomorrow with Joseph F. Regan, 28, for the slaying of a Los Angeles detective, was reprieved until May 26 by Governor James Rolph Jr. Regan, however, remained in the death cell at San Quentin prison today, to which he was removed from condemned row last night in company with Green. The Governor granted Greens reprieve upon request of Walter J. Little, Speaker of the Assembly, so that the condemned man's parents, Mr.

and Mrs. J. H. Green, of Salt Lake City, and his attorney may have time to present further evi dence. Green's parents appeared before the Governor several days ago asking for commutation of sentence.

Last Tuesday the Governor said he would not stay Green sentence. Evidence had been placed before the Governor which showed that Regan fired the shot, which killed Police Officer Hugh Crowley of Los Angeles during a Westwood The ater holdup last year. Green was subsequently convicted as an ac complice. Pleas for commutation of sentence to a life term was based upon the ground that Green did not shoot Crowley. Austrian Baron Sued By American Wife LOS ANGELES, April 20 (P) Charging cruelty and desertion, Baroness Elvira Mattoni filed 'suit for divorce today against Baron Andre Mattoni, Hollywood snd European screen and Stage actor and Austrian nobleman.

The Baroness charged that her husband associated with, women, stayed out all night a week after they wore married and that she was forced to pay part of the expenses of honeymoon to Europe to visit his parents St their ancestral lhome in Austria, REPRIEVE GIN TO DOOMED MAN SECURITIES Buying of Large Blocks of Leading Issues Advances Prices Until Reaction Itfwre Than 7,000.000 Shares Change Hands in Bull Rush Commodities Rise NEW YORK, April 20. W) Transactions on the New York Stock Exchange today totaled 7,198,964 shares, the largest since May S. 1930, when 8,270,200 shares changed hands. NEW- YORK, April 20. The wildest trading in nearly three years swept over the American markets today as Wall Street and Main Street sought to anticipate "controlled inflation" of currency by putting their money into shares and commodities.

On the New York Stock Exchange the scene was reminiscent of the palmiest bull market days, and on the Chicago Board of Trade, as well as In lesser marts, the same rush to buy developed. Turnover in stocks was approxi mately 7,000,000 shares. Heavy profit-taking hit both stocks and wheat after extreme re spective gains of $1 to $9 a share and more than 3 cents a bushel, but fresh purchasing orders poured in to maintain prices well above Wednesday's close. The American dollar, off the gold standard, went to a discount esti mated at about 14 per cen' in terms of European gold monies, while highest grade bonds, whose fixed income returns would represent Smaller purchasing power should living costs advance, weakened sharply. SrOT PRICES CLIMB WITH FUTURES.

Spot prices of silver, copper, lead, zinc, rubber and sugar climbed with futures, though some of the latter reacted before the close. With the ticker tape running as much as half an hour behind the market, it was impossible at times to keep tabs on prices except as they were telephoned from the floor. When the market showed signs of lagging in the last hour utility issues were brought forward os fresh leaders, and their upward rush pulled the whole list back, though generally speaking industrials, which piloted the early spectacular upsurge, finished under their highs. The market average cnmDea imo new high ground for the year. Utility shares were moving swiftly higher at the close, making nearly all their gains in a wild upsurge durng the last half hour.

American Telephone's final price was $06, the high and a net gain of $6. United States Steel common finished at $42.25, up $4, its extreme gain having been $6.50. United Corporation closed at $8, up Consolidated Gas of New York, $50, up Eectric Power Light, $8. up $3.37. LEADERS CLOSE WITH NOTABLE GAINS.

Corn Products Refining, which had jumped $9.62. at $74, at the frenzied opening, closed at $69.50, up $5.50. Columbia gas gained $2.87 net, to General Motors, $1.50, to International Telephone, $2.50, to Standard Oil of New Jersey, $3.12, to $34; International Silver, $5, to Cerro de Pasco Copper, $3.62, to Goodyear Rubber, $1.75, to Liggett ic Myers Tobacco $4.75, to $77; Allied Chemical, $2.25, to $91.50. Santa Fe Railway closed at $46.75, up $3.12. Wheat's net advances were around 2 cents a bushel, while New York cotton quotations closed at gains of 90 cents to $1.15 a bale.

The rush to buy at opening time was so great that orders were lumped -into huge blocks, several of which amounted' to 10,000 shares. There was one 40,000 share transaction in International Nickel; another of 35.000 shares in International Telephone. A million and three-quarters shares changed hands in the first hair1 hour the heaviest volume for that, neriod since November 13, 1929, the day the Rockefeller interests placed their sensational order of $50 a share for 1.000,000 shares of Standard Oil of New Jersey. MARKET ZOOMS AT TERRIFIC CLIP Reacting -now and then under profit taking, the market zoomed alone at a terrific clip. U.

S. Steel common at one time was selling at $44.50, up $8.50. Corn Products Re-finitiu Inmned $9.62 at the orjeninK to a price of $7l, white scores of issues, particularly metals, jumped $1 to 04. Customers' rooms brokerage houses were jammed, while the trading pits of the commodity mar kets presented scenes of high I pitched excitement as trader; sought to execute orders. HIGHER PRICES first step in a program of controlled inflation.

Twenty-four hours after the going off the gold standard the United States was cheered by a boom in commodity end stpek prices. Tickers clicked the hopeful news throughout the land ester, day. The dollar is finding1 Its level among the unsettled currencies of the world. American wheat, auto mobiles, sewing machines and such are about 10 per cent cheaper to our foreign customers now than day before I yesterday. But exporters receive the same sums in dollars and cents.

i AMERICAN DOLLAR PRICE DROPS President Roosevelt' objectives are cheaper dollar, higher prices here and abroad, and, eventually, a stabilization of world currencies in relation each, other. Stock and commodity markets boiled upward after Roosevelt announcement that no more, metal ''The current diicuesioni about the gold standard run contrary to to many long established. American ideas of finance that they naturally cause many persons to feel anxious. This is, of regrettable and it may be of some importance to point out that there is no special reason to think that the safety property and invest ment must be endangered by well-' considered and properly managed monetary reform." Walter Lippmann thw givet hit view on "The Question of Stabilization" on pagt one of the Mag azint Section in today's Tribune, would be shipped abroad to maintain the gold parity of the $1' bill. In a few hours the American dol lar, standard of value throughout the world since the war, dropped to 92 cents.

It is expected to to 85 and perhaps lower. How far the deprecation of the dollar abroad will boost domestia prices cannot be But the new bill will give the President supreme authority to take further action to put prices up to a profitable, level and arrest deflation. MEASURE DRAFTED ON THOMAS PROPOSAL. The measure around a proposal by Senator Thomas, (D a back bench and frequently rebellious member of the upper house. He was eXDected to intro duce it today either as an.

amendment to the pending farm bill or as (Continued on Page Col- "Maedchen" Star Tries Her English At First Interview In United States Dorothea Wieck, upon her arrival from Germany to join film galaxy at Hollywood, demonstrates vitality, poise, sense of humor and taste in dress during conversa-i tion with Wood Soanes, for Stage and Screen sec-tion of next Sunday's 0 0 IQ More Jobs May Result From Action fey CLAUDE A. AGGER, Associated Press Financial Editor NEW YORK, April What does it mean in dollars and cents? This was the Question on Innu merable lips today as ma kets were convulsed by news that the United States had suspended the gold standard. While clear answers to the ques tion were lacking, pending development, of Washington's controlled inflation program, It wis agreed in many financial and economic quar ters that it should mean more jobs. Whether the price rise coinci dent to reduced purchasing power of the dollar would mean appre ciably higher costs of living was described as problematical. That, it was explained, would depend upon the levels at which prices are finally stabilized.

BRITAIN HAS KEPT LIVING COST STABLE Great Britain, since abandonment of the gold standard there In 1931; has kept the cost of living relatively stable. That country's suspension of gold gave commodity prices only a momentary boost, but it helped England hold her prices. In terms of her currency, fairly stable, while gold prices in the United States and France continued their steady decline, with consequent further disturbance to business and employment. Proponents of inflation and in flation means raising prices through increasing the turnover of currency or credit or both have held that slightly higher costs of living should be welcomed by the country at large if it mean widespread gains in employment and a check on the steady decrease in payroll which the nation has endured. ECONOMISTS LOOK FOR LITTLE INCREASE In the main, bankers and economists who discussed the problem were not Inclined to look for much Increase in living costs.

It was pointed out that the re lapse In the dollar in terms of other currencies had effected, chiefly the raw staples, which had declined much more sharply than the cost of living. The actual gains thus far in com mOdity levels have been but a small fraction of the slump of 4he past tnree years. it was hoped that the upturn in staples, many of which have been quoted seriously below the cost of production, would bring thev, profit moiive jnto piay revjve busi. ness, and restore jobs. Goinr off the cold standard means tha.t the national, currency, for the time belnr.

Is not re deems Die in uoia pay. naa Dcen severely restrict- ed since the banking; holiday last' month, but starting yesterday the government announced definitely that It would cease licensing (old exports to support the dollar In relation toother currencies, which definitely took the country off the fold standard. 1 The (old standard is of practical Importance chiefly In International trade, since gold Is the only, international standard of value. Cut free from gold, the dollar is left to find its own level tn relation to other currencies on 'a' demand "and supply t''- 41 'Ok.