ANOTHER US CASH THREAT

US Treasury undersecretary, delivered another sharp ultiof the capitalist world at a Paris meeting of financial experts matum to the rest on Tuesday.

While the Organization for Economic Corporation and Development heard Volcker's statement, Nixon's government announced its second steepest balance of payments deficit in history, and the Commerce Department released figures showing a deepening trend towards recession in the US.

Volcker told the Paris delegates, representing ten of the top capitalist nations, that they had better get their 'philosophy' straight on a new monetary setup to replace the shattered postwar system based on convertibility between the dollar and did think such settlement could be reached by autumn, by which time many bankers fear another currency crisis with the possibility of dollar devaluation.

He made it clear that America will not restore convertibility least until the other countries had made sufficient • concessions to bring the US balance of payments back into surplus.

Last month, the US trade deficit widened to $587m from January's total $318m and December's $273m. This is worst of figures since the all-time record of $821m last October.

To overcome this-massive deficit, the European and Japanese employers would have to sacrifice exports to the US and open their markets to US goods and capital investment.

The sacrifices they made in the December 18 currency realignment Have simulated the American monopolists' appetite for further concessions.

Volcker demanded know who would take over US role now there 'were multiple centres of economic power rather than a single dominating country.

Who would provide the matchdeficits sustain countries' trade surpluses and maintain the International MoneFund as the world policeman, he asked.

Paper schemes like the Special Drawing Rights system envisaged Chancellor Anthony Barber were useless if the other capitalist countries would not agree to finance "substantial period of US balance of payment surpluses, Volcker said.

The European governments and central banks were ignoring the underlying issues favour of a preoccupation with 'surface mechanics', added.

The underlying issue behind Volcker's tough talk is the growing . recession throughout capitalist world pushing state into an intensified struggle for markets.

The Commerce Department's industrial index. released yesterday, shows the smallest rise for five months, indicating that production and investment in the US are falling rapidly.