The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-04-20

WASHINGTON, D. c., April 1e-
Secretary Of the Treasury Woodin,
has announced that he will hold
conference tomorrow with governors
of the Federal Reserve Banks with
the express purpose of quickly fore
ing into circulation the new Federal
Reserve Bank notes provided for BY
the Emergency Bank Bill. This nc "
currency, of which there is already
over $19,000,00 in circulation, can be
issued on the basis of "bank assets"
They are not redeemable in gold.
Credit Imitation
Following the announcement of the
conference with the Federal Reserve
Governors, Woojin also announced
that the administration is preparing
to release as soon as possible" frozen
bank deposits which are now admit
ted to be over $4,000, 100000 How the
Administration plans to release bank
deposits that are tied up with the pro-
posals to issue new currency, viii
soon be known.
Woodin has stated that the admin
istration will attempt to force the
banks to be more liberal in the extern
sion Of credit. This is initiation by
way of credit expansion, since it in
wolves the pumping Of credit into
enterprises whose financial position
really does not warrant conservative
loans. This will undoubtedly cause
a rise in prices.
Commodities Rise
In response to these inflationary
developments, commodity prices con-
tinue to rise. The rise affects all
commodities, sugar, wheat, cotton,
rubber, and oil. The Moody index of
commodity prices is now the highest
in the season, and is higher than
the same period last year.
The weakness of the American dol
lar on the International money ex-
change became more intensified to-
day. Following the first break in the
dollar on Saturday, the Treasury is
sued licenses for the shipment of
gold, about 100000 being shipped on
Monday and $3,999 400 yesterday. But
these shipments have been of no
avail in stopping the fall in the dol
lar.
Record Dollar Decline
Foreign currencies rose to record
highs at the expense of the dollar.
The dollar closed at 246O francs. a
new low since 1925. The pound sterl-
ing rose to a new high for the year,
1888, The French, Dutch. and Bel
gian currencies we're so high in re-
lation to the dollar, that if permits
sion were granted by the Treasury,
huge amounts Of gold would be going
out Of the country.
Roosevelt Stops Shipments
Roosevelt h as issued a state
nent putting an end to all gold
shipments. This, therefore, confirms
the fact that the United States is
definitely off the gold standard, both
internally and externally.
To Issue Paper Currency
Secretary Woodin has said that The
rise in wheat prices is not due to
inflationary tendencies, but to de-
creased wheat supplies. The fact is
that world visible supplies of wheat
are the greatest on record, the In
ternational Institute of Agriculture
predicting that supplies of wheat will
experience further and very ap-
preciable increase" in the present sea-
SON.
The trading in commodities grows
more heavy as prices continue to
rise. No better indication could be
found that we have definitely e.
tered a period of inflationary price
rises. The cost of living for the
masses will go higher as the initiation
proceeds.
The embargo on gold. meaning as
it does, the abandonment Of the gold
standard, will result in further weak
ness Of the dollar. This will result
in rise in commodity prices, 1t
will also enable fmerican imperial