The midland journal. (Rising Sun, Md.) 1885-1947, 1933-05-05

to put into action his
policy of controlled imitation" Mr..
Roosevelt himself calls this policy
program for control of commodity
price levels and says it is designed
to raise prices but to keep them from
going too far up. He gave assurance
that there would be no resort to
printing press money"
Senators Thomas, Byrnes and Pitt
man drafted the measure to carry out
the Presidents plan, and it was
promptly introduced in the senate as
an amendment to the pending farm
relief bill. It provides:
!. For expansion Of credit up to $3.-
000.000,000 through purchase Of gov
eminent obligations by the federal re-
serve banks. (This means the purchase
in the open market Of governments
bonds and was tried in the Hoover adj
ministration.)
2. AS an alternative, for the imitation
of the currency by issuance of green
backs up to $3,000,0 900, 900 under the act
of 1862, such currency to be legal ten-
der for all debts, public and private.
8. For use of such greenbacks to
meet maturing government obligations
and to purchase government obliga-
tions. A@s
4. For retirement> Of such greenbacks
at the rate of 4 per cent a year.
8. For reduction OF the gold content
Of the dollar not more than so per cent
for the purpose of protecting American
foreign trade from the effects Of depre-
ciated foreign currencies and to enable
the President to negotiate an interna-
tional agreement stabilizing monetary
standards.
6. For acceptance of war debt pay
ments up to an aggregate of 100000
600 in silver at a value of not more
than SO cents an ounce.
Z. For coinage of such silver and de-
posit in the treasury for redemption of
silver certificates issued against 1t, such
certificates to be used for paying obli-
cations of the United States.
Secretary Woodin drew up the or
der concerning gold expectation. I'M
der it no gold is allowed to leave the
country except that earmarked for
foreign account before April Is and
such amounts as are required to save
American business. men from loss on
commitments In foreign trade incurred
prior to the proclamation of the new
policy.
The United States thus has placed
itself on the same footing as Great
Britain and many other foreign ma
lions. Its money is unstable In value
in international trade. 1t was pointed
out that Mr.. Roosevelt could now with
greater propriety propose that all
nations go back to the gold standard
together.
Effects of our plunge into the infia-
ton pool were immediate. Prices on
the stock exchanges and especially in
the commodity markets went up with
rush and trading was heavier than
for many months. Millions of dollars
were added to the farm value of all
grains. and cotton and sugar also
moved upward, as did provisions.
On the London and Paris exchanges
the dollar sank decidedly. Neither the
British nor the French were pleased
with the Presidents action. The Lon
don Daily Telegraph said: Following
Americas latest action demand will
arise in every country for fresh de-
probation so that exporters may not
lose their power of competition in
world markets. The new task of the
statesmen is to prevent chaotic proc
ess of competitive depreciation of cur
rencies."
DOLICIES of the Roosevelt admins
tration are being expanded and ex-
tended so fast and so far that con-
awI I,n nnuUku,,