The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-04-20
INITIATION BILL
IS READY FOR
Senate ACTION
Accord Reached on Cur
renCy Measure; May Be
Rider to Farm Relief.
PRESIDENT IS CURBED
Limit viii Be Placed on
Right to Raise or Lower
Gold Content:
BY LYLE c. WILSON
United Press STAFF Correspondent

WASHINGTON, April 20.-Sen-
ate leaders said today that very
substantial agreement" had been
reached with President Roosevelt on
the administration currency def1a-
ton bill, and that it might be Of
fered today as a rider to the farm
relief measure. g.
Details of the program we're dis
cussed Wednesday night at a
White House conference, in which
Senator Key Pittman Dem, New
and Senator James F. Byrnes
Dem, S. c. participated, and
again today between the President,
Treasury Secretary Woodin and
Senate Majority Leader Joseph T.
Robinson.
1t also was made known that the
treasury planned to issue this aft
ernoon rules and regulations to
cover the frightened American gold
embargo.
Pittman said that it was likely
some neutrality-suspicious. so per
cent-would be placed on the power
to be given the President to raise
= lower the gold content of the
dollar.
Thomas TO Introduce
Robinson has informed colleagues
that Senator Elmer Thomas Dem.,
OklaD would introduce the admin
istration's currency imitation amend
ment to the farm bill, probably to-
day. The amendment now is in the
hands of administration advisers for
redrafting
From Pittman and other sources
it was learned that The administra-
ton contemplates using the United
States notes to be authorized in the
legislation to purchase and retire
government bonds. Congress would
continue to appropriate interest on
the retired bonds, and the. fund crs-
ated would be used to redeem the
United States notes.
The silver section of the bill. as
tentatively agreed on today, is the
so-called Pittman bill, authorizing
acceptance of silver up to the value
of 100000 900 in payment of war
debts. The silver could not be &C
cepted at a rate greater than so
cents an ounce.
The first step toward imitation
came Wednesday with official aban-
donment of the gold standard.
Not Fiat Money
Pittman told questioners that the
final draft of the initiation amend
ment contained checks and guards"
which would make it less alarming
to Wall Street than the draft pre-
pared Wednesday by Senator Thorn
as, upon which the administration
program will be based.
The Thomas bill will be the base
of the sections to revalue the gold
dollar and for the issue of United
States notes. Pittman was explicit
in denying that the proposed note
issue would be fiat money, because
there is a redemption fund"
1t is becoming evident, as details |
of the plan further unfold, that the
administra ton is seeking and will
get authority to enforce its money
policies on the country regardless |
Of the attitude of the federal reserve
board
1t was suggested to Pittman that
the proposed legislation would force
the federal reserve to de business
or go out Of business" The senator
smiled. but quickly said, That is not
my language
Would Maintain Prices
The authority to issue notes for
retirement of bonds, however. would |
give the administration a direct |
avenue through which money could |
be shot into circulation at Mr.. |
Roosevelt'S will. 1t has been the |
junction of the federal reserve
board to expand and contract note
circulation as requirements of the
country dictated.
The note issue provision further
would enable Mr.. Roosevelt to main |
tain government bond prices, since
ne could send into falling market
a stream of United States notes to
purchase and retire bonds.
Discussing that phase of the
problem, Thomas remarked that
there are S2l 900 100000 in govern
ment bonds outstanding.
1t virtually is decided he said.
ito issue several billions of United
States notes TO retire some of these
bonds. The President has in mind
using that provision for bond re-
tirement.'
Hourly Tennerafuras