Evening star., 1933-12-31
SILVER PROPOSAL
. UP TO ROOSEVELT
Rainey Says Program Must
= Have Support to Gain
Enactment.
BY the Associated Press.


In the face of reported growing
sentiment for remonetization of silver,
Speaker Rainey said yesterday such a
move would not reach sufficient strength
to gain enactment unless President
Roosevelt gave it his support
At the same time, Senator Thomas,
Democrat, of Oklahoma, leading m
flation advocate, made three SuggeS-
tionS, including free coinage OF gold
and silver, which he said would settle
the monetary issue.
With the administration apparently
studying a proposal under which the
Treasury would commander all the
gold in the Federal Reserve banks, pre-
paratory to revaluing the dollar, Off
cials expressed the opinion that present
laws gave the Treasury such great au-
thority that the action could be taken
with the stroke Of pen.
Thomas suggestions we're:
Bid up gold to Saba an ounce.
place an open bid to accept all
gold, at designated points in the United
States. payable in paper money which
would stabilize the paper dollar in
terms of gold at IL grains plus.
Accept Silver for Coinage.
Accept all silver for free coinage
II necessary at the present weight Of
the silver dollar) paying for 1t in sill
yer certificates, which would put lot
of new money in circulation through
the issuance of the silver certificates.
This policy would make the silver
certificates of the same value as any
other sort of paper money and would
effectively stabilize silver
1T would give US a metallic base for
our money until such time as We go
back to the gold Standard-if We do.
The anti-infationists could not raise
any cry of printing-press money"
Meanwhile. Representative Cross,
Democrat, of Texas, a member OF the
Banking Committee, announced he in
tended to introduce bill to reduce the
gold content of the dollar. His eX-
planation of the measure was:
This bill provides that the gold
dollar shall be reduced from 25.8 grains
of gold 9-l0 fine to 1873 grains OF
gold 9-10 fine and that the silver dol
lar shall contain 206.4 grains of silver
9-10 fine. This would established
ratio of l6 to in the coinage OF the
two metals.
Would Restore Silver.
Thus by restoring silver as money
and thereby broadening the metallic
DdSe anu IGuuCIlls lLlC 44uLllbC4 Va 81 oAA4o
in the gold dollar by half, the Sec
retary of the Treasury would at all
times be in possession of ample re-
demption metal SO that he could ex-
pand the currency in circulation suffi-
GENTLY to keep the purchasing power
of the dollar at par with the 1926 COM
modify price level"
Like all other Government depart
ments, the Treasury was closed yester-
day and consequently the customary
announcement of the price at which
the Reconstruction Corporation will
purchase newly mined gold was omitted
Since December 18 the figure has stood
at S34O6.
Questioned about the activity of the
Senate silver bloc, Speaker Rainey told
news men he was delighted with it.
He said he was informed the entire
Ohio House delegation was supporting
the Flesinger bill to authorize the pur-
chase Of $500, 100000 of silver bullion
against which certificates would be is
sued
I'VE don't want to do anything con-
Rainey said. but we do want the COM
modify prices raised to the 1926 level
The Speaker said the Presidents rati-
fication of the silver agreement at the
London Economic Conference shows
that he is thinking in terms of silver