Evening star., 1920-01-10
GOVERNMENT LOANS ON LIBERTY
BONDS PROPOSED IN SENATE
Mr.. King 5 Bill Would Prevent Sacrifice of
Securities by Persons In Need
of Ready Money.

| the currency, such action would be
considered reputation OF currency
| That this would be a difficult thing
! for a nation to do is admitted, but it
result in the end in relieving the
situation greatly. Senator Owen of
Oklahoma. ranking democratic men,
Der of the banking and currency COM
mittee, deplored the fact today that
this government was doing little to
governments should get their cur
| rency back to gold basis, he said,
while it would mean less money in
the peoples pockets, the money in
their pockets would purchase more
The value of money, he said. is in its
purchasing power. Therefore the
people would not really lose.
Urges Foreign Exchange Bill.
II have tried" said Senator Owen
"to get the administration to take up
my foreign exchange bank bill. which
would establish a system of exchange,
through government agency. that
would relieve the situation. This law
preparations made to meet the situa-
tion which any one with foresight
could have seen coming with the close
of the war. But nothing was done.
Senator Thomas of Colorado is of
the opinion that a fixed ratio estab-
llSneQ between SOlu anu SILVER Woulu
result in improving the foreign ex-
change system. He said that the
esta blishment Of such a ratio would
not be BIN metallism. since there would
be no coinage right involved. as there
was when the silver question was
agitated in this country.
"The great trouble about the huge
discrepancies in foreign exchange"
said Senator Thomas. lis that it acts
as bounty on exports. For instance,
the German mark is now valued at 2
cents in exchange for the dollar. 1t
sends goods to this country and is
paid in dollars for them. with these
dollars it can purchase German marks
at the rate of fifty for a dollar. in
stead of four and fraction. as in
normal times. Now, with those fifty
labor. and the pay of labor not nearly
so high relatively as the foreign ex-
change. 1t is easy to see, therefore,
at what a disadvantage our manu-
facturers would be in competing with
the German"
Some Points Tentatively Settled.
Some Of the features of the pending
railroad bill have been tentatively
settled by the Senate and House con-
ferees now struggling to shape bill
to be reported to both houses. They
have decided to fix a definite period
of six months for the government
guaranty of returns on Investment
to the roads after they are handed
back to private operation. This is
bill. passed by the House. The Cum
minis bill, the Senate measure, pro-
vided for a guaranty of more or less
indefin period Of about four months.
The conferees also have settled
upon $500, 900 900 as a revolving fund
from which loans may be made to the
roads by the government when they
the House fixed this revolving fund
at s250,o0o.0 900 and the Senate at
$500. 900, ,00O
During the present week Senator
Myers of Montana has introduced a
bill to appropriate s4.OO0.O00 for loans
tions of the country, for the purchase
of seed for 1920 spring planting.
A stringent law to prevent gambling
in cotton futures is proposed by Rep
resentative Hudspeth Of Texas. 1t
provides that gambling or specula-
ton as it is exploited and carried on
in what is commonly known as cot
ton exchanges in the United States
is hereby prohibited. and it is made
unlawful for any person. corporation.
or association to sell any contract
for future delivery of any cotton
within the United States which may
enter into interstate commerce. or
that may be imported into the United
States, unless the seller is actually
the legitimate owner of the cotton so
contracted for future delivery at the
time such sale or contract is made. =
Provision is made for publicity with
regard to all transactions on the ex-
changes, and heavy fines imposed for
the violation Of the proposed law.