Evening star., 1933-05-26
President Asks House Bank
ing Committee Chairman to
Offer Resolution to Define
Present Status of Country.
MEASURE TAKES METAL
= BACKING FROM BONDS
Steagall Terms Proposal One of
Greatest Steps Toward Stabili-
zation of Money So Far Taken.
Early Hearings on Bill Will
: Be Held.
By the Associated Press.

that the United States should go
off the gold standard by statute.
He requested Chairman Steagall
of the House Banking Committee
today to introduce a resolution to
place the United States off the
standard by law. The Alabama
Democrat had conferred with the
President at the White House.
Later Steagall called newSpa-
permen to his Office and read a
copy of the resolution which he
said declares the United States
is of the gold standard by statute.
1T repeals the gold standard act I"
Steagall said.
Adding that under the resolution no
bonds, no obligations of the Federal
Government and no obligations of any
form would have to be paid in gold or
g-ld currency upon the enactment of
the measure.
He said it would be possible for the
foreign debtors to pay the United States
their war debts in any legal money.
This bill frees the United States
from the obstacles and handicaps of the
gold standard" he declared.
"It Is an administration bill and a
part of President Roosevelt's emergency
relief program"
Held Greatest Step.
In addition Steagall said the law
would make 1t unnecessary for Presi-
dent Roosevelt to devaluate the gold
dollar under the initiation provisions OF
the farm relief act.
Steagall termed the measure one OF
the greatest steps toward stabilizng
money in the United States.
All legal money under this act, he
asserted, would meet all obligations pay
able in gold.
Chairman Fletcher of the Senate
Banking Committee will introduce an
identical resolution in the Senate.
Decision Is Sudden.
The decision by the President to seek
the gold legislation came suddenly.
The first inkling was this morning
when he talked with Steagall. They
conferred but briefly.
Later the President consulted with
his economic delegation and then with
Secretary Woodin, who announced ne
soon would explain the action.
It was regarded in washington as
another move to give the President an
absolutely free hand in his economic
negotiations with the other world
powers.
OF course, already the United States
is off the gold standard, but by repeal
of the gold act Mr.. Roosevelt will be
free to negotiate any standard he sees
fit
In the joint communiques issued after
his conferences with representatives OF
the foreign nations the President joined
with the foreign spokesmen in urging an
early return to the gold standard.
Secretary Woodin did say the pur-
pose of the move was not simply che
to permit lowering of the gold content
of the dollar Congress recently gave
the President power to do that.
Even before Steagall made his brief
but significant announcement to re-
porters it had been reported he would
soon introduce a very important
measure drafted with utmost secrecy.
Declines to DISCUSS Bill.
Steagall said the measure had been
virtually completed late last night, but
that its final text was not approved
until today.
Questioned as to the reason why the
President desired this legislation,
Steagall waved his hand and replied,
you'll have to ask the President"
He declined to discuss any of the
.s-%an, of ba foryou1oti0n nf tho r1rQ-
p0sal.
Subsequently, Steagall said he did
not think it was necessary to hold
hearings before his committee, but that
1t would consider the resolution and
report it for action next week.
Representative Goldsborough, Demo
crat. of MARYLAND. with Steagall during
his conference with newspaper men
said this legislation was the flnal STEP
needed to improve domestic conditions
and to start the flow OF credit from
banks.
This bill eliminates all Of the buga'
boo about the gold standard, nj
ayerred.
Resolution Quoted.
Steagall Immediately introduced th'
bill in the House and made the follow
ing statement:
Il give it as my humble judgmen
that this bill marks a final, definite ant
determinate step that will bring re
vival of business and a restoration 0
prosperity and happiness to the Ameri
can people"
The resolution is entitled, "To assur
uniform value to the coins and curren
cies of the United States" and reads a
follows:
Whereas, The holding of or dealing
in gold affects the public interest, an,
are therefore subject to proper regula
tion and restriction; and
Whereas, the existing emergency ha
disclosed that provisions of obligation
Continued on Page 2. Column =