Evening star., 1933-09-22
ROOSEVELT SCANS
PLANS FOR DOLLAR
Advisors Seek Acceptable
Method to Stabilize
Level of Prices.
By the Associated Press.


Administration economic advisers
are giving close study to methods of
controlling dollar fluctuations to the
and stabilized price levels might be
achieved
The subject, it was disclosed author
itatively today, has been under con-
Sideration for weeks, with the managed
currency system of Sweden as a prac-
tical guide, but how President Roose-
welt feels toward such an experiment
remains for him to disclose.
Administration sources have indi-
Gated the Executive wants a stable
dollar, but has yet to decide the best
course to attain it.
One administration economist, when
asked his views summed up his own
and the views Of some others as fol-
lows:
ITO so manage the currency that the
substantially stable is desirable aim
The idea Of stable dollar is to prevent
fluctuations in prices that are due to
fluctuations in the gold dollar.
Two Main Systems.
what do we want in this country?"
this authority asked. DO we want q
dollar with a constant purchasing
power, or do We want dollar with a
rigid gold content which will buy SO
cents worth one year and 50 worth two
or three years later?
I'VE can either regulate the value
Of the dollar, which is its purchasing
power. or we can regulate the weight
We have been regulating the weight
IN the past. saying how many grain:
Of gold there should be in the dollar
Under this system prices have variec
widely over the years. The value o.
gold depends upon supply and demand
OF the metal and its value Is measured
by what it will buy. When there wa!
Alaska and South Africa strikes, com.
modify prices were high.
The less gold there Is, the dearel
1t becomes, which means the more i
will buy and the lower the price OF
commodities. On the contrary, wheI
gold is plentiful prices rise. When tn.
demand for gold is heavy and the sup
ply shortens prices fall because golt
will buy more.
Indices Show Trends.
Government statisticians could fgur,
out desirable price levels from indice,
showing commodity price trends, on,
authority explained. and that tn,
President could be given authority b,
Congress for a permanent program t.
set by proclamation the gold conten
OF the dollar for any stated futur,
period. It was indicated in som,
sources that 1914 or 1925 levels wer,
wanted.
Should it be desirable to turn pric,
trends upward, the gold content wouls
be reduced, this economist set forth
while If lower levels were wanted. tn,
amount could be increased, reducin,
the amount of money In circulation ans
forcing prices down.
The economist added that the ste,
could be taken without world actor
and would be strictly a domestic pro.
gram, but dollar exchange in foreier
countries would continue to fuctuat,
unless all monetary systems were sta
bilized along similar lines.
by handling the money. you preven
domestic price, fluctuations due {,
money" this authority said. "You al
ways hear that an ounce Of gold 4
worth an ounce of gold That is true
but the same ounce of gold won't bu,
as much one time as another. so vol
can see how the value of gold actual,
f1uctuates.
"A managed or stable dollar. callet
commodity dollar, q yardstick dolla
and by several other names, would b,
based primarily upon controlling tn
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