The Washington times., 1933-04-21
'PROF|TEER|NG'
. DOOMED BY
F CONTROL
Initiation Program Backed BY
Administration at Senate
Committee Hearing
(Continued from Page y

(Continued from Page -
drawing currency from circulation.
Supporters of the bill today de-
clared it would:
!. Give the President control
Of American currency, while
stripping Wall Street and the
Federal Reserve System OF its
long-used power to expand and
deflate the currency;
2. Stabilize farm prices at q
living level while barring ex-
tortionate values;
8. Force Europe to enter
agreements for Stabilization Of
foreign exchanges;
$3,OOO,OOO,OOO Note Issue
4. Slash the cost Of war debt
payments by European debtors,
If they agreed to further dis
armament;
5. Effectively terminate the
raids on American markets by
foreign nations producing COM
modities under deprecated cur
rencieS;
6. Open to American COM
merce the world markets long
closed by deprecated currencies
abroad.
The bill actually would author
ize the President to issue $3.000,-
100000 in United States notes for
the payment of maturing Federal
obligations or the purchase Of
United States obligations, reduce
the gold content Of the American
dollar by mot to exceed SO per
cent" and accept 500, ,000,0 900 in
silver as payments on the war
debts at mot more than so cents
an ounce"
Control BY President
The President would attain abb
solute control Of American cur
rency through a provision calling
for agreements by the Federal Re-
serve Board and its member banks
to purchase or sell $4,000, 900 900
Of Government securities any time
the Treasury requested.
The President would have the
power to put either bonds or cur.
rency in circulation up to $3,-
100000, 900 at any time.
An alternative proposal would
give the President power to issue
$3,000,O00,OOO in greenbacks for
the same purpose. If the banks
refused to carry out this function
according to his wishes, then the
Treasury would do so, using the
greenbacks to retire Government
bonds.
Price Control Seen
When too much money was in
circulation, the President merely
would retire the greenbacks or
issue new bonds to meet current
obligations.
This power to expand or con-
tract the currency in circulation
would give the President a con-
troll over commodity prices. His
economic advisers declared he
virtually would be able to fix
commodity prices at any level
he desired and then to stabilize
them at that level.
If prices sky-rocketed, so the
cost of living increased violently,
he would have the power to order
deflation of the currency to re-
store a lower level.
Throttle on Exchange
The bill would give Mr.. Roose-
welt tremendous weapon to use
in the forthcoming economic con-
ferences.
With Premier Macdonald of
Great Britain, landing in New
York, for instance. the bill would
enable Mr.. Roosevelt to negotiate
an Anglo-American agreement for
stabilizing the exchange rate be-
tween the American dollar and
British pound.
It would apply as well to other
currencies and to agreements for
Stahilizing the ratio between gold
and silver throughout the world.
The weapon would be authority
to accept silver payments on war
debts, up to total of $100 ,OOO, 900
at mot to exceed so cents an
ounce for silver" and to reduce
the gold content Of the American
dollar.
Debt Slash Cited
The British government. for in
stance, would be far more able
to meet its war debt payments if
part were paid In silver and the
rest in a deprecated gold dollar.
The debt would be Slashed to the
extent that silver were accepted
and the gold dollar reduced.
There is a specific clause in the
bill relating to international
agreements for establishing
"ratio between gold and silver"
The President would have author
ity to fix the value Of the gold
dollar at whatever ratio might Re
adopted.
This, in itself, would terminate
the raids on American commerce
and reopen lost world markets to
American goods, it is contended.
G. o. p. Fight Seen
A group Of Republican Senate
conservatives planned to fight
the ill.
They agreed with Senator Reed
(RO of Pennsylvania that the
measure was "unsound" and would
cause suffering among wage
earners and people with bank saw
ingS. ....