Evening star., 1933-04-24
Opening Debate for Roose'
welt Plan, He Sees Huge
Shifting Of Currency.
REED, OPPOSING BILL,
QUESTIONS HIS FIGURES
Two Revisions, Tending to Limit
Roosevelt's Powers,
Are Revealed.
BY the Associated Press.

By the Associated Press.
Described as capable Of transferring
5000, ,0OO, 900 900 from the creditor TO
the debtor class, the administrations
imitation program started on its way
through Congress today, certain to en-
counter soaring criticism en- route.
Senator Thomas, Democrat, OF Okla
homa, who introduced the measure.
opened debate. Administration leaders
expect to have the plan approved by
Wednesday night. AS the talking be-
gan, Chairman Fletcher OF the Banking
Committee announced he would stand
by the President" despite his previous
opposition to the provision to lower the
gold content of the dollar.
Two Revisions Made.
The committee text disclosed two
changes had been made in the original
proposal to provide a further check
against undue credit expansion" and
liberalize the credit expansion section.
Thomas told the Senate that bank
deposits had shrunk from $50 ,000, ,O0O,-
900 in 1880 to $4,000 600, 900 today,
and unless the pending proposal can
take 5000, 900 900 900 of wealth from
those who did not earn it and transfer
it to those who have lost 1.-THE debtor
justice will not have
been done"
Democratic leaders we're willing to let
the Republicans make the most OF the
debate, confident they have the power
to jam the measure through when the
vote is put, probably by Wednesday.
Two days Of sharp informal debate
already have been had in the Senate.
The committee revisions, hitherto un-
against undue credit expansion and lib
eralizing the first section authorizing
SO 600, ,O00, 900 of credit through open
market operations in Government Sc
curities by Federal Reserve Banks.
The first official print Of the Bank
ing Committees revision carried an
amendment authorizing the Reserve
Board, with the approval Of the Secre-
tary of the Treasury. to require the
Federal Reserve Banks to take such
actions as may be necessary, in the
judgment Of the board and Of the
Secretary Of the Treasury, to prevent
undue credit expansion"
Under the liberali1ng clause, the
present law imposing . graduated tax
upon the Reserve Banks for deficiencies
in reserves would not apply.
Patman Backs Plan.
Meanwhile Representative Patman.
Democrat. Of Texas, an advocate of
currency imitation and cash payment Of
the bonus, sent q statement to the
American Legion and other veterans
organizations indorsing the currency
expansion program.
The debate was opened by Senator
Thomas. who introduced the four-point
imitation proposal as an amendment to
the farm BILL with an assertion that
it was the most important proposition
ever to come before parliament of any
nation in the world"
The tall, white-haired Oklahoman
said:
Save the single issue of the World
War. there has not been an issue joined
in 5000 years of world history as I'M
portant as this issue here today"
After outlining the four points of
the proposal giving the President
broad power to order controlled in
flation Of credit and currency, Thomas
the possible transfer of funds from
ond, those owning bonds and having
fixed investments.
They did not earn it," he said re-
ferring to the bondholders. They
did not buy it, but they have it, and
because they have it the masses of the
people of this republic are on the verge
of starvation-17,0 ,000, 900 of them. We
must transfer that 5000, ,000, 100000 to
those on the farms and those owning
real estate and those who owe the
vast debts of this nation"
Reed Questions Plan.
The leader Of the imitation opposi-
tion. Senator Reed, Republican, Penn
Sylvania, asked Thomas If he under
stood correctly statement by Thomas
that the imitation movement would
transfer 100000, 100000 from the
creditor to the debtor class.
Unless that's done the debtor class
won't have substantial justice, "
Thomas replied.
rs that the purpose of the amend
ment?" Reed asked.
1T might have that possibility" 4"
Thomas replied. but If that's done it
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