The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-04-09
BEARS GIANT
RAID PROJECT
BRINGS QUIZ
Billion Dollar Assault Is
Planned on Market,
Senator, Told.
INQUIRY IS \ ORDERED
Scheme Would Have Made
Today Blacklist in
Trading History
BY LYLE C. WILSON
United Press STAFF Correspondent


WASHINGTON, April 9.-Reports
that Stock Exchange shorts were
organized for 81 200, 900, 900 market
raid which would have made today
the "Black Saturday of all Trading
History partly were responsible for
senate banking and currency COM
mittee decision to begin the Stock
Exchange investigation Monday, it
was learned today.
Senators with banking connec-
lions laid reports of the contem-
plated bear raid before the COM
mittee in an emergency meeting in
the Republican cloak room just off
the senate floor Friday.
There were several telephone calls
to Richard Whitney, president of
the New York Stock Exchange, cul-
minating i'll the committees de-
cision to subpoena him as the first
witness.
F Wall Street was accused in the
house today of manipulating prices
to influence pending legislation in
congress.
Flags France in Speech
The accusation was made by
Representative La Guardia (Rep.,
N. W in brief speech inferring
the recent decline in prices was de-
signed to influence the senate
against the stock transfer tax.
French raids on the American
dollar were denounced from the
floor by Representative Dyer (Rep.,
Mo-, who said that France mo
longer was the friend of America"
although we entered the World war
ito save the people of Europe, par
ticularly France"
Senator Glass (Dem., Va today
challenged legality of the banking
and currency committee to begin
the stock market investigation. He
said, however, he would not press
the issue, provided the inyeStiga-
ton did not concur in his bank
regulations bill.
The senate committee intends to
expose foreign interests which it
suspects may be hammering the
stock market in a plot to drive this
country off the gold standard.
fragrant foreign propaganda
against the dollar, coupled with
continued decline of securities
prices, helped lead the committee to
order an immediate investigation of
the stock market
RidicuIe French Attack
The committee wants to know
how much of the present liquida-
ton in securities markets is being
done by foreign interests. Senators
promised that the hearings would
be full and facts made public.
Government officials, meantime,
had but one word for French press
attacks on Americas financial sta
bility-"ridiculouS." They held the
reports were too absurd to warrant
official notice. In response to in
quiries, however, they made public
data showing the vast extent of this
country'S gold holdings.
On April the United States had
$4,396, 100000 of gold This was Al
per cent, nearly half, of all the gold
in the world. The federal reserve
system alone had gold reserves of
So, 2S8, 100000, and this did not in
clude $246,000,000 of gold held for
foreign account. Banks and indi-
viduals held more than $1,000, 900 900
more.
1t was also pointed out that one
of the chief purposes of the recent
ly enacted GlaSS-Steagall bill was to
fortify this country against any
possible foreign raids on the gold
standard.
Gold Backs Currency
The nations currency now is
backed by about 10 per cent gold,
although only 40 per cent is re-
quired. The new law provides that
government securities may be sub
Stituted for the gold over the 40
per cent requirement.
Hundreds of millions of this ex-
cess gold in case of emergency
could be used to meet foreign de-
without touching penny
of the gold legally required to sup
port the currency on the gold stand
ard. :
No data was available here on the
extent of foreign holdings in this
country which might be liquidated
and withdrawn.
Acting Chairman Smith w.
Brookheart said he had laid before
the senate banking committee a
confidential report which showed
that foreign interests could drive
this country of the gold standard
in sixty days if they liquidated all
their holdings, converted the bal
ances into gold, and withdrew
their metal.