Evening star., 1933-10-11
PRESIDENT SPEEDS
PLANFOR BANK AID
Speculation Revived Over I'M
mediate Prospects Of Sta.
biIizing Dollar.
By t1c Associated Press.

BY The AsSoslat ed Press.
Administration plans for reopenm2
banks. Noeraliz.ng credit dHd pulla-lie
Iow-cost hcrnts moved forward at a
swift "a e to-day alter President Roose-
yelt mad brought pressure to bear en-
rev phases OF the rehabilitation pro-
gram in A round of White House con
ierences yesterday.
Intimation that a preSidentla! pro-
nouncenent on monetary poEcles Was
III early prospect revitallzed Spfcnlatloi,
over whether the Chief Executive woulo
ATTEMPT immediate stabIl zation ul the
dollar.
Conflicting Views Expressed.
In we'll informed circles it was sa!o
that conflicting views on the question
of devaluation of the gold content Ol
the dollar had been laid before TIE
President by his major economic &dVlS-
erS
Opposition to reduction Of the golo
content without international accord
was reported to have been expressed tc
Mr. Roosevelt, by DR.. James H. Rogers
Yale econCmiS, and one OF his chlel
financial handy mcn.
Against this view the Executive was
.,:Ioerstood TO have the ,pinion of Dr.
}.
devaluing lie d)llar and staDilizng /;
through control of its gold conte nj
Ioud be done successfully by this coun-
Try alone.
Some of the Presidents advisers,
while disclaiming any knowledge o.
what he might have in mind. said they
felt he was ready to stabilize When
ever such action could be taken with
out disrupting commodity price levels
or otherwise upsetting the financial
structure.
One plan understood to have been
suggested to Mr.. Roosevelt was to per-
nit the buying power of the presen.
dollar to sink to between 55 and &c
cents, as compared with the standard
gold dollar and then to stabilize =
whatever value. between those levels
seemed most desiraol
Other Phases Pushed.
Other phases of the reha bilitation
program we're pushed forward by the
Executive in separate discussions with
various Government heads. Later, d
rough draft of all the new phases CT
the program were laid before his GX-
ecutive Council, including members OF
the cabinet
In stride with the forward push. In
terror Secretary IckeS revealed he was
considering plans for setting up new
corporation to go into cities, buy OF
condemn lands and build houses tha,
would be sold or rented, with the pro-
ceeds being used to repay the Treasury
for the expenses involved 1t was in
dicated several hundred million dollar
might be spent in this way. the object
being to make available thousands o.
low-priced homes. at the same time
abolishing slums and providing work.
1t also was disclosed that one of the
subjects discussed at the Executive
Mansion was a proposal to set up a
new Government institution to get funds
in closed banks into the hands Of de-
positors. A detailed announcement re-
garding this plan has been expected
today. but Controller of the Currency
O'Connor told newspaper men he was
certain it would not be made until later
Legal questions were said by some ol
the Presidents callers to be delaying
the plan
Another White House visitor said
however. questions of policy. rather
than legal questions, were holding NJ
the bank reopening plan. One of hte
questions to be settled. it Was said, wa:
whether the Treasury or the Recon.
struction Finance Corporation should
provide the funds needed to thaw out
frozen deposits
Proposals Under Study.
Henry Bruere, liaison agent for the
Governments fiscal agencies, said four
or five alternative proposals were under
consideration, adding it probably would
be several days before plan was finally
agreed upon. Legal points involved
were discussed with the President. ii
was understood, by Attorney General
Cummings and counsel for the r. F. C
While the White House parleys were
IN progress. the governors of the II
Federal Reserve banks met at the
Treasury for their regular quarterly dis
cussion of conditions throughout the
country. They declined to say what had
been taken up but it was understood
the bank reopening plan was one OF
the subjects discussed