Imperial Valley press., 1933-04-24
WIDE POWERS
BEING SOUGHT
BY ROOSEVELT
Senate Expected To Approve
Authority For Control Of
Nations Currency.
OPPOSED BY MINORITY
Administration Supporters As
sert Not Much Initiation Is An
ticipated.
BY LYLE c. WILSON

United Press Staff Correspondent
WASHINGTON, April "a. The
most momet tous week in postwar
American financial history began
today with the senate debating
and preparing to approve an extra
ordinary grant to President Roose-
welt of power to expand credit and
currency.
Mr.. Roosevelt is eager for the
uthority-unmatche by that &C
corded any chief executive since
congress told Abraham Lincoln to
start the money presses beginning
in 1862.
But supporters of the administra-
ton initiation bill sponsored by Sen
ator Thomas (Dem), Oklahoma,
emphasized its objective is far diff
ferent from the 1862 greenback is
sue. They explained the added
curr ercy contemplated in this eco
nomic emergency is not greenback
money and would be kept sound by
a redemption fund on the treasury.
There are four provisions in the
initiation plan pending in the SEN
ate toSay as a rider to the admin
STATIONS omnibus farm relief and
mortgage refinancing bill.
/. Authority for the President to
arrange for the federal reserve to
purchase $3,OU0O00,000 of govern
ment obligations to expand credit
and federal reserve currency.
2. Authority for the President to
authorize the issue Of $4,000, 1000
additional currency in the form OF
United States notes.
8. Authority for a maximum re-
ductlon of SO per cent in the gold
content of the dollar.
4. Authority for the President to
accept a maximum of 100000, 600
in silver in partial payment of Eu-
ropean war debts.
The bill bristles with authority"
All of 1t is conferred on MIR. Roose-
welt. No provision of the initiation
amendment is mandatory - the
President may put it into operation
or he may not, as he chooses. On
that ground, some progressive Dem
ocrats and Republicans = Senator
Borah (Rep), Idaho, is one-com-
plain the plan scarcely is an infla-
ton measure at all.
Avoided Dispute
Some persons smile slyly and pie
dict, Mr.. Roosevelt is hoaxing
Thomas and other intlationists. Be-
hind these smiles is the belief the
President will not put much of the
initiation into effect. 1t is agreed
generally that by adopting the
Thomas plan as his own the PreSi-
dent mas avoided an initiation dis
quite with a congress determined to
enact legislation of some kind look
ing toward a cheaper dollar.
Mr.. Roosevelt has informed his
congressional leaders he is eager
for the proposed powers so that he
may better bargain with the
foreign statesmen here and later at
the world economic conference. The
senate is overwhelmingly initiation
list, perhaps two to one. The house
Is eager to vote. Senator Reed
(Rep), Pennsylvania, ana House
Republican Leader Smell concede at
the outset that they cannot defeat
the administration bill.
To the Reed-Sneli protest that
the proposed initiation would. be
unsound, its advocates reply that
the $3,OOO,OOOOO0 currency issue to
be authorized is accompanied by an
automatic retirement provision
whereby four per cent OF the out
standing notes will be called in an
nually and cancelled
To the silver section of the bill
will be added another authority"
Mr.. Roosevelt will be empowered but
not compelled to order Tree coinage
of silver at ratio with gold to be
fixed by him. The administration
mas agreed to that amendment,
None expect it ever to be put into
effect.
Well aware of this fact, senate
and house subcommittee which
have been studying the silver ques-
ton met today to consider the pos
sibility of seeking action on meas
ure for mandatory reconciliation
NJ ci1yer