Evening star., 1933-04-21
PRESIDENT ORDERS
SPEED.ON IMITATION
Debate May Be Limited to
Kill FiIibuster if Course
Is Necessary.
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would suffer Immediately in the rise in
the cost of living 1t would be felt in
the grocery bill, the fuel bill. the cloth
ing BILL in the cost of transportation,
insurance, education and every other
item entering into the family budget.
There are 50,000000 savings ac-
counts in the United States. AS prices
rise. each savings depcsitor, each per-
son with money in the bank or in
building and loan association, loses
money daily by simply keeping his
money on deposit.
There are 122, 10000 life insurance
policies in force in the United States.
Millions of policy holders are wholly
dependent on the proceeds Of these
policies to educate their children or
provide for their own old age. Value
of these policies goes down with the
dollar, and exactly to the same extent
Al the policies are payable in dollars.
AS prices rise and the dollars are
worth less, the insurance policies are
worth less, the prospective annuitieS
disappear and the carefully saved
education fund with it. There are
millions of boys and girls whose college
careers are wrapped up in these policies
Many of them would be denied an
education if the dollar drops in value.
There are 100000 persons gain
fully employed in the United States
There are 100000 in agriculture,
IA 900 900 in manufacturing industries
100000 in trade. 100000 in trans
portation, 100000 in electrical en-
ployment, 100000 in personal service,
5000 900 in professional pursuits ana
100000 in mining. Every man who
draws pay envelope or receives a pay
check would suffer an immediate wage
cut, probably followed by further re-
ductions as the dollar declined in value
and the cost of living rose.
There were in February 100000
families, including approximately IT,
100000 persons directly dependent on
public or private relief agencies They
would get less to eat and wear or it
would cost the country more to feed
and clothe them as prices rose. They
cannot be allowed to starve or go un-
clothed That means taxes would rise
and the Government would have to
pour billions more into relief funds.
1T is contended by advocates Of in
fation that it would help the farmer by
raising the prices received for his crops.
How would the farmer benefit If wheat
sold for $40 bushel if the $40 wouldn't
buy a pair of overallS or a gallon OF
gasoline?"
Reed said there have been fewer mar
riages in the United States during the
last two years than at any time Tor the
past 10 years. He said this was due
directly to the depression and that 1t
Is to be assumed that a rapid rise in
living costs will discourage marriages.
These deferred marriages represent, he
said a huge backlog Of building, house
furnishings, of buying of all kinds that
are ready to be released as soon as
business improves.
Reed did not wait for the plan to
be formally reported to the Senate, but
opened the floor debate by reading
statement he had previously given to
the press.
Vandenberg Presents mark"
When Reed said German imitation
had led to an avalanche of worthless
money" Senator Vandenberg, Repub-
ncan, of Michigan pulled out what he
called a 100000 100000 German mark
and said its face value would have re-
tired the worlds debts, but unfor-
tunately it was worth about 2l2 cents.
Il thank the Senator" Reed said,
"and in return I hand him a note for
10000 rubles"
Reed said he had no criticism Of the
gold embargo as he thought that a
wise" move, but he did seriously OBJ
iect to the imitation plan.
At about the same time, high OFF,
cial of the Federal Reserve said in an
interview that an agreement had been
reached for the Federal Reserve System
to support Fundamentally the admins
tration's initiation program by purchas-
Jng Government securities.
The purpose would be to release the
funds tied up in those securities for
other investment.
Amendments Approved.
The committee approved an amend
ment authorizing the Federal Reserve
Board to place a check on initiation by
requiring member banks to increase or
decrease their reserves against deposits
as the situation required.
Woodin and Budget Director Douglas
had indorsed the Thomas bill and ex-
planned administration plans for pro-
ceeding under it to boost commodity
prices, thereby spreading work.
The Thomas amendment was intro
duced in the House today as a separate
bill by Representative Rankin OF Mis-
sissippi.
Meanwhile the House Republican
Steering Committee with Og-
den Mills, Hoover Secretary Of the
Treasury, who has been busy knitting
Republican opposition to the bill
decided it would be futile to oppose the
legislation in the House If it passes the
Senate.
Lobbying" Probe Asked.
Aroused by Mills activities, Repre-
sentative Dies, Democrat, Texas, intro
duced a resolution Of congressional in
vestigation of the same, which he
termed lobbying" against the Roosevelt
program.
The amendment to put a check on
Initiation was offered by McAdoo, Secre-
tary of the Treasury under woodrow
Wilson.
Senator Thomas left the Senate COM
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washington Permanent Building Association.
will be held at the office, No 500 F st. NV,