Evening star., 1933-04-19

OF American currency and trade.
Attacking the situation from the do
mestic angle, he watched carefully the
meeting of the governors of the II
Federal Reserve Banks here today.
With Secretary Woodin, they are de-
vising methods Of using the idle bill
lions of American money.
The President in preparing for his
international parleyS Is putting this
Nation in the same position as all 9TH
ers with a view to finding an agree
ment for a more stable world basis:
He has in mind a controlled price
level, a controlled credit and man
aged currency.
There is talk of reducing the 40 per
cent gold reserve for currency as
basis for a new world standard, but 1t
does not appear now that this Will be
considered except by common action
of all the nations.
The President apparently has won
respite from the leaders in Congress
who have been hammering hard Tor
outright currency imitation.
AS the result of conferences last night
and today the congressional captains
are withholding proposals TO give tne
President free hand.
Mr.. Roosevelt considers the heart OF
the problem the raising of the prlce
level But he wants it raised IN Sucn
manner that it will be under control
at all times and not permitted to go TOO
high. A..
it was aptly put today at the WniIe
House a game is on with Roosevelt, tne
quarterback of foot ball team. he
will determine the results OF the imnle-
calling the next.
The forthcoming international eco
nomic discussions are part OF the gen.
eraI maneuyer to restore America to a
normal basis of available cash, jobs ana
credit.
The President hopes to get the world
back on a gold standard. This stand
ard may be different gold ralto 1or
backing Of currency than in the past.
but he is adamant for stablllzatlon o1
the world monetary situation.
Part Of World Program.
The revocation of licenses for the ex-
port of any more gold appears 10 Dt
part of his international program. HN.
ing I'D the attempt further TO support
the American dollar In the Iorelgh e
change is regarded as serving the oudl
nurpose of Increasing American com.
modify prices and putting the President
in a strategical position Tor MS ecu
nomic bargainings. ,. tor
export of gold becomes eHecelVe I'LL
mediately. ro.cte
to raise American commodlty prizes -
somewhat involved and dlmcuit oi e
nIanation. 1t was explained, tnat COZ,
fnn for instance, is sold on the golo
basis On the present gold basis tlle
rate js about 60 cents a pound. Snoulo
the price OF gold slide oil ~ per cens
a resultant increase in cotton OF III pei
cent is regarded as inevitable
A public works program also Is con-
tempIated by the President 10 summary
employment but it is likely that tlis s
plan will not be anywhere near tlls
four or five billion dollars ao'oca'eo
in some sources. ,,,,.
,rf1ation movement at this time is TO
raise the price level but at the same
time to control it so that 1t won't go
The Federal Reserve bankers were
meeting at the Treasury with secretary
Woodin to formulate plans for putting
a part of $4,000, 100000 OF new Feo-
eral bank notes into circulation; aiming
to speed business recovery anu reieaoe
deposits of closed banks.
~---
vencv banking act was expected to pro-
vide credit in such conditions as now
exist by furnishing currency backed py
Government securities and eligible
paper.
$4,000, 900 in Circulation.
I'm to the present, only little more
than SIS, 9,OOO, 900 of this money has gone
into circulation.
throughout the country was expected 10
depend chiefly upon the kind OF col
lateral the Federal Reserve banks de-
eide to demand of the closed banks Tor
borrowing currency. The system has
heretofore demanded first-class paper,
but the Federal Reserve Board has the
mower to relax the regulations governing
the acceptable collateral and make II
easier for the banks to obtain money. j..
Senator'S Thomas OF Oklanoma anu a
Long of louisiana, both Democrats, are
for the time Withholding their pro-
nosed inflationary amendments to the
administration farm bill in the Senate
to give the President an opportunity
to Shape his plans. Thomas was
caller at the White House last night.
Intimates of the President insist
there is going to be no printing press
inflationSthat is, no flood Of paper
currency turned out without reguiatlon
gold backing.
But there is stirl considerable talk
of devaluation of the gold dollar-a
reduction in the gold content of the
dollar to make the legal dollars more
plentiful on the basis Of the gold sup
ply.
Whatever he has in mind in this
direction, most certainly Mr.. Roosevelt