Evening star., 1933-06-21
BACK ROOSEVELT
: ON STERILIZATION
Democratic Leaders Hold Ac-
Z tion Would Retard Rise in
7 Commodity Prices.
BY G. GOULD LINCOLN.

BY G. GOULD LINCOLN.
Democratic leaders in Congress are
strongly backing the attitude of Presi-
dent Roosevelt and his administration
that there shall be no immediate effort
to stabilize" the American dollar, op-
posing a proposal that has been ad-
vanced by the French at the London
Economic Conference.
In their opinion the stabilization OF
the dollar now would make impossible
the further advance in commodity prices
in this country. Several of the Demo-
cratic Senators have been called into
conference with members Of the cabinet
and other high officials in the last few
days to discuss the question of dollar
stabilization. They showed themselves
emphatic today in opposition to the at
titude of France that there must be
pound without further delay If the
London Economic Conference is to
make progress Nor do they seem par
ticularly alarmed over the threats of
the French to force q long recess of
the conference.
Senator Robinson Of Arkansas, the
Democratic leader. made it clear that
he did not wish in any way to tie the
hands of Americas representatives in
London by what he might say. But his
position was that it is not yet time
to come to the stabilization of the
dollar.
Dollar Not Yet Low Enough.
Senator Harrison of Mississippi. the
chairman of the Senate Finance Com
mittee, frankly expressed the opinion
that the American dollar has not yet
gone low enough" He pointed out
that the British have been experiment.
ing with the pound for a couple of years
and that the French have brought their
franc to about cents, when in the
past it was around 20 cents. The United
States must have a longer period in
which to bring about an adjustment of
the dollar to the values OF farm COM
modities and other values, in his
opinion. The deflation of the dollar
and the appreciation of values of COM
modities have been underway only
few weeks, he pointed out.
The congressional leaders say that to
bring about world recovery there must
be increased commodity prices all
around.
Thomas Also Opposed.
Senator Elmer Thomas Of Oklahoma,
author of the imitation amendment to
the farm relief act, under which the
President is authorized to take several
inflationary courses to debate the value
of the dollar, was among those who
have been in conference with admins
tration officials over this proposal from
f1r tho cfa hflioo tiny, of tho dol
lar. He strongly opposed any such
course of action at this time. Mr..
Thomas views were set forth in let
ter he addressed to Secretary of Agri-
culture Wallace, in which he dealt with
the proposal at London to stabilize the
dollar. In his letter Senator Thomas
said:
Permit me to call attention to news
paper messages from the London con-
ference to the effect that a proposal is
pending, II not tentative agreement
reached, whereunder the dollar is to be
stabilized at from 81 to IS cents, based
upon the present relation Of the dollar
in currency to the dollar in gold.
'Tf the dollar should be stabilized at
such value, it would result in less than
a 50-cent reduction in the buying power
of the farmers dollar and in that event
the farmers dollar would stiH be around
200 cents"
Senator Thomas explained that when
the Roosevelt administration came into
ofice the farmers dollar was worth in
his products, $2.44l2, and the wholesale
dollar was s1.80. He said that in order
to develop the policy of the President
the dollar should be reduced in purchas-
ing power to the average value between
1920 and 1888, or to the value of 1926,
which was 100 cents"
Makes Plea for Farmer.
Senator Thomas said to date the
policy has been carried into effect to
the extent Of cheapening the dollar
some is to 20 per cent, and the auto
matte increase in commodity prices has
been in the same proportion.
The Oklahoma Senator insisted that
the present reduction in the value of
the dollar has not been sufficient TO
permit the farmer to get along.
Unless the farmer can become self
sustaining" he continued. neither tax,
interest nor debt payments can be re-
sumed. Towns, cities and States can
not continue as going concerns, and if
these subdivisions cannot be returned
to solvency. the larger unit, the Federal
Government, must likewise suffer the
same inevitable result"
Senator Thomas expressed the fol-
lowing conclusions:
1T is my opinion that there is no re-
lief possible save through two things.
First the enforced and arbitrary reduc-
tion OF the value OF the dollar, and sec
ond, the enforced and arbitrary placing
IN circulation among the masses Of the
people an adequate supply of real, not
deposit or credit money With the
value Of the dollar reduced to approx
mately 100 cents, based upon the past
10-year average. and with real dollars
placed in circulation among the masses
Of the people, then the deposit money
or credit money will increase auto
matically."
1t is quite clear that the program
outlined by Senator Thomas would be
in conflict with the attempt now being
made by the French to bring about
fixed value of the dollar through sta
bilization with the British pound.
But Senator Thomas is of the opinion
that something more will have TO be
done in this country toward reduction
Of the value Of the dollar He ex-
pressed himself as in favor OF making
use OF the infiationary measures car
ried in the farm relief act
N00 nnn cna NonrnaN-