The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-12-27
Howl for Greenbacks by West.
ern, Southern Congress-
men Inevitable
OTHERS WILL HIT INITIATION
Predict lnflationists Will Be
PoWerless Under Presi-
Dental Veto
By RODNEY BUTCHER

Washington, Dec. 27.-The initiation
issue probably will be decided before
the seventy-third congress adjourns
few months hence.
But not necessarily by congress. The
session opens during lull OH the cur
rency front and it now seems safe
bet that President Roosevelt will be
able to keep the fate Of the dollar in
his own hands.
When the dollar is devalued to SO
cents-as seems to be the administra-
tons plan-three or four billion dol
lars Of new currency may be issued on
the basis of doubled value of the ma
tons gold reserve.
That would be initiation of type
but quite another picture than the
spectacle OF runaway ''greenback
congress, which many opponents OF
the Roosevelt monetary policy claim
to fear.
Greenback Howl Certain
A howl for greenbacks from many
western and southern members is in
evitable. Its intensity and conse-
quences will depend on the success
Of the recovery program and the eff
feet Of the White House currency ef-
forts.
Volume of the anti-inflation pro-
test will be similarly dependent,
though the recent collapse of solidi-
fled opposition movement leaves the
issue largely between Roosevelt and
the radical inflationists, except for
the fact that Roosevelt will receive
full conservative support in any bout
with the extremists.
Such conservative backing. a de-
pendable residue Of administration
strength in congress and a popular
sentiment which will back Roosevelt
in anything he does, makes it almost
certain that inflationists would be un-
able to pass q bill over presidential
veto.
Concessions Possible
That leaves Roosevelt free to carry
on his own policy, which may in
clude concessions to initiation senti-
ment, such as purchase Of silver for
a currency base and possibly a prom
Use Of new currency based on a re-
valued gold reserve.
The Roosevelt plan calls for raising
the commodity price index to the 1926
level and subsequent sterilization
which. under the Warren plan now
favored at the White House. would be
based and maintained on the COM
modify price index.
The dollar first must fall in value
in relation to gold and other comno-
dities. One method used in achiev-
ing that effect is the gold purchase
plan. though there is bitter debate
as to its practicability.
For two months the treasury,
through the r. F. c., has been buy
ing gold at a rate far above statutory
price, to depreciate the dollar.
Glass Will Erupt
The first currency fight is likely to
come over administrations
to validate and strengthen
the gold purchase policy and possibly
other operations not yet announced.
Senator Carter Glass and the other
money conservatives then will un-
leash their guns.
Glass is set to question the legality
Of the gold buying plan, as did I'm
was fired from the treasury. The adj
has been preparing for
Dean Acheson before he
such an attack in congress.
Conservatives also are expected to
% q fi,Siln nffavf m tokn tho
initiation powers which congress gave
to Roosevelt in the last session. At
the other extreme will be those who
want to make initiation mandatory.
The sound money" group finds one
Of its previously most impressive
arguments weakened by success Of the
treasury's December financing.
Stirred By Farmers
Tactics of the inflationists will be
governed by whether they think the
president is going fast enough and
far enough. The initiation demand
from west and south is inspired by the
condition of debt-ridden farmers, who
find prices for farm goods rising but
slowly and the increases largely offset
by increased prices Tor Things they
must buy.
It's important to note that the in
flation tumult Of few weeks ago sub
sided after the administration began
to pump subsidies and loan money in
to the affected farm areas.
Senator Elmer Thomas of Oklahoma
and Representative Rankin of Mis-
sissippi. two inflationist leaders. re-
Gently have expressed their wiling
ness to string along with the Roose-
welt program-intimating, neverthe-
less, that they are not convinced it
will have the desired result soon
enough.
Gold Program Outlined
Indicating the tendency Of infla-
tionists toward revaluing the gold re-