The Waterbury Democrat., 1933-04-21

LeQeraI reserve board, as 6 check ons imitation, to require member banks to increase their deposit re- serve when necessary"
 There was no roll call on the fin- al vote to report the imitation meas. ure favorably. The vote to withhold from the president authority to re- value the dollar was as follows: For withholding the authority: Glass, Gore, McAdoo, Goldsborough Townsend, Walcott, Carey, Seiwer, Kean and Fletcher.
 Against withholding the author ity: Wagner, Barkley, Bulkley, Costigan, Reynolds, Bankhead, Adams, Norbeck, Couzens and Byrnes. Senator Walcott, republican, Connecticut, offered the resolution recommending that the imitation measure be separated from the farm bill.
 The four democrats voting to withholding from the president au- thority to revalue the gold dollar included Glass and McAdoo, both former secretaries of treasury, and Fletcher, chairman of the commit tee.
 Chairman Fletcher said 1t was his intention to report the bill as soon as possible and take 1t up in the senate this afternoon. Senator Reed, republican, Penn gylvania, leading the opposition bloc, denied e.intended to filibus- ter. but said the people would op- pose the measure if they under stood 1t.
 "The duty of the minority will be to inform the people," he said.
 Democratic leaders were con- fident of the bills passage but frankly feared several days delay.
 From informed senators 1t was learned the administration was hopeful the first part of the infia- tionary program could be started to-day without waiting for enact nent of the bill. This first step Is purchase of government bonds by tho federal reserve banks to pump dollars into the country.s financial system.
 The administration bill authoriz- es these purchases up to 8 maxi- mum of $3,000.000,000 permitting possible later issuance of $3,O00,- 000,000 in United States notes and revaluation of the gold dollar. The bill was introduced yesterday by Senator Thomas, democrat, Okla homa, as an amendment to the ad- ministration farm relief bill.
 The administration plan provides first of all for the president to neg otiate with the federal reserve banks for purchase of $3.000, 0,000,- 900 worth of treasury bills or other government obligations.
 The banks would buy the bonds In the open market or from the government. The proceeds, $3.000.- 000,000 in currency or federal re- serve bank credit, would be inject cd into the country's money stream. The result the administra- ton hoped, would be further as- cendancy in the price level, which began to rise when the dollar was cut loose from the gold standard 4S hours ago.
 serve banks who would conduct the open market operations are now in conference here with Secretary of Treasury Wo0din and members of the reserve board. The governors haNO BaFOi hO AiAiiS VI ViOW on the plan.
 The bill further empowers the president to reduce the gold con- tent of the dollar by 6 maximum of 50 per cent and to accept silver to the amount of $100,000,000 in war debt payments. The silver would be accepted at not more than 50 cents an ounce.
 It Is emphasized in administra- ton quarters that the whole pro- gram is perm issive. None of the lnhation is mandatory. Whether President Roosevelt will make use of the authority to issue United States notes or devalue the dollar cannot be foretold.
 The administration goal Is a substantial risc in the price level and an accompanying sustained re- vival in business. It is watching now to see how lasting will be the boom in the stock and commodity markets which began when the roId ata rdard was abandoned.