Evening star., 1933-12-12
RECOVERY COUNCIL
DISCUSSES BUDGET
Morgenthau and Douglas Still
Apart on Public Works
Sums.
BY the Associated Press.


The budget problem and how much
the Government is going to spend next
year on public works and Federal re-
lief came up for review again today at
the White House as the Recovery Coun-
Gil met in regular session.
Henry Morgenthau, Acting Secretary
of the Treasury. and Lewis Douglas,
director Of the budget, are still apart
on how far to 60 in these directions.
President Roosevelt, who heard the
views OF the heads Of his collecting and
spending agencies yesterday, intends to
fix the Government policy before the
week ends.
viii Spend More for Relief.
He already has decided that the Gov
ernment will spend more money in the
new year for public works and also for
direct relief.
The needs in these directions were
canvassed today by the Recovery Coun-
Gil.
Morgenthau said he and Douglas had
not yet reached an understanding.
HoZ f. each proposes to go on
continuation Of the emergency program
has not been disclosed, but it is known
that Douglas favors a pay -aS-you-go
policy"
Douglas took to the White House ten
tative figures calling for disbursements
Of 81 500, 900 900 between July l, 1884,
and June 80, 1885, with receipts loosely
estimated at $3.50 100000, leaving a
margin OF nearly billion for unex-
pected needs and reduction Of the Ma
tion's debt.
Gold Price Unchanged.
A short while before, Morgenthau
had announced another continuation
Of the domestic newly mined gold price
at $34.0l. 1t has been unchanged since
December !, with new and unrevealed
safeguards in effect to prevent the fig-
ure from becoming known in financial
centers before its official publication
here Meanwhile, officials silently con-
tinued their investigation Of report
that the gold price had gotten out
ahead Of time.
While the week end brought as
sursnces from several quarters, includ-
ing Senator Thomas of Oklahoma, an
exponent Of imitation, that no move for
mandatory imitation was planned for
tor Pittman of Nevada, champion of
silver. yesterday asserted reconciliation
of the white metal would be ordered by
Congress unless the President acted N
the meanwhile.
Predicting the silver advocates would
introduce measures ranging from free
and unlimited coinage to governmental
purchases Of silver bullion. the Senator
said he was willing to compromise. He
suggested "a bill providing for the coin
age of silver dollars from all silver
mined after the passage Of the bill,
which. he said, would add approximate
ly $50 900 900 to our currency and pro-
vide a mild imitation"
Douglas Against Plan.
Douglas disposition has been to throw
his influence against huge emergency
expenditures and work toward more
normal budget.
The President has shown desire to
put Government money to work where
ever there Is promise that such action
will help the unemployed. How deeply
| this apparent rift runs was not dis
closed in the opening conferences on
the 1885 budget.
OF great Importance and vagueness
among the emergency expenditures
the amount that the Reconstruction
CORPORATION will need. Its life officially
expires in January. but Mr.. Roosevelt
has said that Congress would be asked
to extend it and there have been indica-
tions that its powers might be some,
what broadened. So far this hsca.
wear, now nearly have gone, the
Treasury has advanced the corporation
S449, ,O20, 900.
A second big item is the Public
Works Administration. Congress origi-
nally authorized it to spend $780,.
| 600. 900 and its officials predict thai
! that will nearly all have been disburseo
! by the end Of the fiscal year. They ex-
pect to ask for probably two billion
more.
Issue Oversubscribed.
The Treasury yesterday announced
that subscriptions to the $3.50 0oo ,OOo
of certificates of indebtedness offered
last week totaled $4,000 900 900. The
new securities were offered in ex-
change for s727, ,000,000 of maturing
issues. The exchange offer was taken
advantage Of to the extent Of s607,-
$50, 500, the remainder being paid from
| the cash receipts of the issue. All
subscriptions Of $4,000 were allotted in
full. Cash subscriptions OF more than
that amount received II per cent
| allotment.
The domestic gold price yesterday
was $1.21 higher than the dollar value
| of gold at London on the basis OF
s5.161s exchange rate prevailing when
the Washington quotation was deter
mined. The margin was slightly re-
duced subsequently as the dollar dis
played signs of weakness.
| Chairman Jones of the r. F. c. an
nounced that purchases of domestic
gold have totaled 10000 ounces at a
cost of $14,000,000. As usual he de-
clined to say how much gold had been