Evening star., 1933-11-23
GOLD PRICE HELD
/ IASF|GHT SPREADS
ON MONEY POLICY
Acting Secretary of Treasury
Morgenthau to See =
Roosevelt.
HOLDS FEDERAL CREDIT
SOLID AS GIBRALTAR
Agitation Against Imitation Voiced
From Many Sources-Aid
to Silver Seen.
BY the Associated Press.

BY the Associated Press.
Paying little outward heed to the
vehement controversy over monetary
policy the administration proceeded with
its gold program today, holding the
domestic price of the metal at the
same level as yesterday.
The quotation was s33.76 per ounce,
while the world price was 1886 at the
opening London foreign exchange quo
tation of S5.40la to the pound. The
dollar later improved carrying the
London gold quotation down to $33.80.
Acting Secretary of the Treasury
Morgenthau meanwhile made ready to
travel to Warm Springs, Ca, where ne
will review with President Roosevelt
the steps thus far taken and make
plans for future operations. Morgen-
thau leaves tonight to keep an en-
gagement tomorrow with the President.
No authoritative official here had
forecast whether the decision at Warm
Springs would be for continued ad-
ministration silence or counter word
offensive to meet that set of by DR..
o. M. w. Spragues resignation and
criticism of the policy as leading to
.unrestrained imitation"
Aid to Silver Seen.
Some consideration was given here to
President Roosevelt's speech last night
l,4 to1t Of H0htiY10
powerful the "intolerant'' and the
"obstinate" for "the things which we
believe to be right" There were inti-
nations at Warm Springs that steps
would be taken soon to aid silver.
An assertion that the Federal credit
is solid as the Rock of Gibraltar" was
Morgenthau's reply to the assertions of
Sprague and others that it is threatened
with collapse by the administration
monetary program.
The Acting Secretary made this as
sertion in replying to the contentious
that the weakness in Government BOND
prices was attributable to depreciation
of the dollar abroad through the gold
buying plan.
Neither he nor members of the Fed
eral Reserve BeaFd would comment
upon the reported action of the Federal
Advisory Council in ordering a state
ment of attitude on the gold program
prepared for private distribution among
member banks.
No Official Status.
The council, which in the past has
not heSitated To speak its own mind,
has no official governmental status. 1t
consists of members chosen from the
various Federal Reserve districts who
meet in Warrington from time to time
to exchange the views OF the various
sections OF the Nation on business ana
monetary conditions.
Questioners who sought text Of the
resolution reported to have been adopted
by the council were referred to Walter
Lichtenstein of Chicago. the secretary.
The other members of the council are:
Thomas M. Steele, Boston; Walter =.
Frew, New York; Howard A. Loeb.
Philadelphia; H c. McEldowney, Cleve-
land; Howard Bruce, Richmond; John
K. Ottley, Atlanta; Melvin A. Traylor,
vice president, Chicago; Walter w.
Smith, president, st. Louis; Theodore
Wold, Minneapolis; w. T. Kemper.
Kansas City; Joseph H. Forst, Dallas,
and Henry NJ Robinson, San Francisco.
Sprague, in resigning as Treasury
adviser, argued that gold buying de-
preciated Government bonds and that
if this were continued Federal securities
could not be sold. making necessary the
issuance of new currency to meet run
ming expenses.
Morgenthau disclosed that money de-
posted with the Treasury from Postal
Savings, Farm Credit Administrator,
Federal deposit insurance and debt
sinking fund sources were being used to
buy Government bonds supporting their
price. The law specifies that this
money be invested in Government Sc
curities. That will be done through the
Federal Reserve Bank in New York.
Last week purchases by all Federal
Reserve banks with their own funds
were $4,000, 900, as against an average
of S1O,O00,00O for the several weeks I'M
mediately preceding and about $35.OOO,-
900 Just before that.
Criticisms Disregarded.
While the administration disregarded
criticisms of its policy, the word battle
over gold and the much-talked COM
modify dollar was undated. The latest
to align himself with DR.. Sprague was
James P warburg, heretofore, at least
a participant in many economic discus
sionS with the President
In Philadelphia, Warburg, banker,
Sd1Q he HluSG CApl Coo "
position to "some of the methods by
which he (the President seeks to at
tain his goal, some Of the misconcep-
tions that seem to becloud his purpose"
At the same meeting of the Amer
lean Academy of Political Science.
Prof. Irving Fisher of Yale held the
Presidents money policy substantially
right" The objective, he continued. is
s.stabilization but not sterilization rel
ative to gold nor in terms of foreign
exchange"
Senator Thomas, Democratic, of Okla
homa, drafter of imitation legislation.
remarked at that meeting, too, that he
was "as much opposed" to improper"
imitation "as any money-changer in Wall
Street."
Warburg reminded that before the
1929 stock market collapse, Fisher in
several statements said stocks were not
too high.
He apologized for quoting Fishers
Continued on Page 8, Column s.