The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-11-27
BACKS MONEY
POLICY OF j. 5.
Owen Says Sabotage of
: Presidents Plans
Spells Communism
b. =. 6. NICOLET
United Press Staff Correspondent

WASHINGTON, Nov. 27 up.
Sabotage Of President Roosevelt's
monetary program would "lead
to communism former Senator
Robert l.. Owen, Democrat, Okla
homa, warned last night in
warm defense of the adminlstra-
ton gold experiments.
Owen, as chairman of the sem
ate banking and currency COM
mittee in the Wilson adminlstra-
ton. had large part III drafting
the federal reserve act. He Is
tnow practising law in Washing
ton. In attacking thegrowing de-
mand for sterilization of the dol
lar on gold basis, the former
senator asserted that a genuinely
stable currency was the goal of
Mr.. Roosevelt and that the gold
based currency in the past had
been itself unstable from the
standpoint Of purchasing power.
Owen pointed out that the
house Of representatives in 1882
passed by a vote of 800 to 60
the Goldsborough bill which de-
clared it to be the policy of the
country to "restore and maintain
the purchasing power of the dol
lar at the average ascertained by
the department of labor for the
years 1921 to 1929 inclusive. "
Former President Hoover de-
nounced the bill on the conten-
ton that it espoused uncontrolled
initiation, Owen said, and "Presi-
dent Roosevelt was elected by
100000 plurality
He contendedt he administra-
! ton had mandate both from
| the voters and from congress to
restore the dollars purchasing
power to the 1926 level-the APP
proximate average Of 1921-1929.
"The truth is" he said, "no in
flation is being proposed, but a
just expansion, an honest regula-
ton in conformity with the con-
stitution which instructs congress
| to regulate the power of money.
SHOULD the opposite course be
TAKEN" he continued, namely
the course being demanded by
the contractionists, recovery
would be stopped, depression
would be renewed and there
probably would come a violent
lunge into communism.
On the other side, the U. S.
Chamber Of Commences weekly
Washington Review asserted last
night that uncertainty and con-
fusion in business has increased
as the administration has con-
tinued its monetary policy in the
face Of widespread protest" 1t
cited various demands for speedy
sterilization of the dollar on a
gold basis, and emphasized the
"effect on government credit
with large amounts of govern
ment securities maturing"
The Review noted, however,
that "the indicated purpose of
the administration appears to be
to carry the test further" and
that changes in treasury person.
mel are interpreted as pointing in
this direction" !
There appeared to be basis for
relief that the administration
will continue to exercises caution
and restraint in it's gold policy
until the December Is refinanc-
ing of more than $790,000,000 is
accomplished. The treasury has
made it clear that the refinanc-
ing will be done in the usual
way, with new securities, posi-
lily bearing a slightly higher rate
of interest than other treasury
issues.
In connection with the concern
expressed in conservative finan-
cial circles over the government
bond price level, it was noted
that of the issues now quoted at
below par, every one was much
lower in January, 1882, than at
current quotations. The treasury
g 3-Ss of 1943-47, for instance,
closed Saturday at 1914. The
lowest quotation on record for
the issue was 1924 on January
~, 1882. when many of the is
sues hit their all time lows. Thus
the government bond market is
far better off today, with the