The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-04-19
GOLD EMBARGO Seen
. As FIRST MOVE IN
| Price RESTORATION
president Seeks Controlled
Price Level, Better Cred.
It to Halt DefIation
RESERVE BANK HEADS MEET
Win Discuss Ways Of Putting
Into Circulation Money
Already Available
RESERVE BANK HEADS MEET

Wa6hl0&Co0, April lS.-(A1-kTe6l.
dent Roosevelt announced Wednesday
. restoration Of the gold embargo q
= move to improve domestic commo-
dity prices
This Is the first step in . cam
paign he has undertaken to estab-
lish = controlled price level and .
controlled credit to counteract de-
flation.
= The word Imitation" u not par
ticularly in the Roosevelt vocabulary.
as he maps his campaign to improve
the domestic situation.
Rather he prefers to speak Of "con.
trolled new price levels"
Additional steps are In prospect.
The president Is awaiting the eff
feet Of Wednesdays move on gold.
however, to determine the extent Of
his next step.
He also was looking hopefully at
the meeting across from the white
house, Of the IL federal reserve gov
ernors who were called In to outline
plans for the use Of existing idle
currency and for freeing the billions
Of deposits in closed banks.
The federal reserve bankers were
meeting at the treasury with Secre-
tary Woodin to formulate plans for
putting q part Of $4,000 900 900 OF
new federal banknotes into circula-
ton, aiming to speed business recov-
cry and release deposits Of closed
banks.
The secretary of the treasury, who
called the meeting, declined to dis
cuss its scope before the conference.
Credit u Available.
He has explained, however, that
the emergency banking act was ex-
pected to provide credit In such Ieea-
ditions as now exist BY furnishing
currency backed by government Sc
curities and eligible paper.
Up to the present, only little more
than $l9Oo0,o00 Of this money has
gone into circulation.
Release Of the deposits In closed
banks throughout the country was
expected to depend chiefly upon the
kind Of collateral the federal reserve
banks decide to demand Of the closed
banks for borrowing currency. The
system has heretofore demanded first
class paper, but the federal reserve
board has the power to relax the reg.
ulations governing the acceptable
collateral and make 1t easier for the
banks to obtain money.
The governors present were Roy A.
Young Of Boston, George L. Harri-
son, New York: q. w. Norris, Phila-
delphia; T. r. Fancher, Cleveland:
@. J. seay. Richmond: z. r. Black.
Atlanta: G. r. Mckay, deputy gov
ernor. Chicago: w. McC. Martin, st.
Louis: w. B. 0eeIy, Minneapolis: q.
H. Hamilton, Kansas City: b. A. Nc
Kinney, Dallas, and ]. q. Calkins,
San Francisco.
AZ the governors assembled, there
seemed to be indecision Is to just
what would be discussed. Governor
Harrison Of the New York Federal
Reserve bank went into conference
with Undersecretary Ballantine and
other governors conferred with Eu-
gene Meyer, Jr, governor Of the fed
eral reserve board.
The steps to put into circula- !
ton Americas available cash are
not al the president has in mind. He
also Is counting heavily on the ap-
conversations with foreign
statesu,en to bring readtustment Of
currency stablixation and exchange Of |
trade. An international agreement On |
silver Is in mind.
Intimates Of the president insist
there Is going to be no printing
press' inflation-that u, no flood Of |
paper currency turned out without |
regulation gold backing.
But there Is still considerable talk
Of devaluation Of the gold dollar-al
reduction In the gold co0tent Of the
dollar to make the legal dollars moro
plentiful On the basis Of the gold sup
ply.