Evening star., 1933-12-13
Bar Metal Rate on Basis Of
Opening of Pound in
y London Is $31.74. e
BUDGET PREPARATIONS
FOR 1885 GO FORWARD
Deficit for Current Fiscal Year Is
$S72,7S3,591, Compared With
$1,211, ,H3 900 in 1882.

BY the Associated Press.
The administration expressed its ap-
parent satisfaction with the dollars ex-
change level today by again quoting a
price Of $34.o1 an ounce for newly
mined domestic gold.
This figure, repeated for the eleventh
time. was announced as the dollar
showed new strength on the London
market. opening at s5.O31a. The bar
gold price on the basis of the opening
pound rate was s31.74.
The gold program, meanwhile, was
subordinated in immediate interest to
the 1885 budget preparations going on
at the White House and Treasury.
Deficit sS72,7s3,591.
Though figures were guarded closely
by Lewis w. Douglas, director of the
budget, the discussions drew attention
20 the present condition of the Treasury.
The deficit since the fiscal year began
July l was s872, ,783,591. as compared
with S1,211 ,443 900 at the same time a
year ago.
Ordinary expenditures were s1.283,-
$4,000 and receipts sl,259 ,549 900,
while emergency expenditures came to
S848, ,772, GAG.
Pushing work for the January /
opening Of the deposit insurance fund.
Walter j. Cummings, chairman Of the
Federal Deposit Insurance Corporation,
announced that 1850 banks not affin-
ated with the Federal Reserve System
have applied for membership.
Cummings said 6,629. or more than
81 per cent of these. have been ex-
amined and that all banks which now
have applications pending will have
been examined by December Is.
All applicant banks. he said. have
been examined in the following II
States: Alabama. Arizona, Arkansas,
Colorado. Florida, Idaho. Louisiana,
Minnesota, Montana, Nevada, New
Utah, Washington and Wyoming.
Thomas Explains Plan.
Meanwhile, Senator Thomas, Demo-
crat, of Oklahoma, inflationist. sought
support today for plan under which
the President could impound, devalue
and remint all gold.
As Thomas explained his proposal
embodied in a bill he said would be
submitted to the President, it was de.
signed to remove doubt as to the Chiei
Executives authority to call in gold anc
at the same time assure that the Gov
ernment made the profit from any
devaluation.
Thomas said his idea was that the
gold should all be called in and paid
for with gold certificates at its then
dollar value. The metal would be
melted, remoulded and revalued. Ths
man who then came back with, say, q
$40 bill to trade it for gold could gel
just half as much gold as he turned ir
if the devaluation were so per cent
But-no bars worth less than $4,000
would be available.
The extent of revaluation would be
left to the President
Doubt Of Authority.
Thomas said a principal effect would
be to clearly empower" the President
to call In gold from whatever sources.
There has been some doubt" he
added, "as to whether he now has the
authority to force Federal Reserve
banks and the like to surrender it."
The Senator said the measure was
intended to follow devaluation and pro-
vide the machinery for carrying it out
to prevent tremendous profits" to the
present holders of gold.
He estimated s4,325, 100000 worth of
the metal tould be brought in by such
a measure
Under q devaluation of so per cent, u
he said, "the Government, and not the
present holders, would make a profit OF
$4,325, 100000. It would profit proper
tionately II the devaluation Is made at
a higher or lower percentage.
once the Government had called
in all gold 1t would be recast into bars
and there would be no more gold coins
Persons turning in gold would be paid
at its then value in gold certificates. "
Federal Reserve figures also dis.
closed yesterday that the system had
sufficient gold resources to increase the
currency in circulation by more than So
per cent without resorting to any In
fationary measure.
It was described as ready to do this
as rapidly as new note issues could be
pushed into the channels Of industry
and commerce. The difficulty Is that
its outlets are clogged. Loans by men,
Der banks were shown to be continuing
at a low level, with consequent small
demands by the latter upon the Federal
Reserve banks for cash. Member bank
deposits were high.