Evening star., 1933-04-07
COMMITTEE OFFERS
PLAN OF INITIATION
Proposal Submitted to Re-
start Industry and Aid
Employment.
~ the Associated Press.

imitation plan, which its exponents be-
1ieve would "restart industry and give
rapidly increasing employment" has
been outlined here by 'the Committee
for the Nation to Rebuild Prices and
Purchasing Power"
The program is called "the next five
steps"
It is signed by five members Of the
Sdirecting committee" and also by 100
prominent business leaders, industrial
lists and economists.
The five steps," in brief, are:
81. Recognize that bank deposits
constitute the Nations important me-
dunn of exchange Therefore, the re-
opening of the maximum number of
banks must be expedited and deposits
unfrozen as rapidly as possible by a
very broad and liberal use of the pow
ers granted the administration by
recent emergency legislation. In the
opinion of the committee, the Gov
ernment would be justified in expand
ing currency to protect the depositors
Of banks which have not yet re-
opened. The Government should
guarantee the deposits of all banks
which have been reopened and which
have been declared sound. .
Continue Gold Embargo.
20. Continue embargo on gold export
and suspension of specie payment be-
fore the United States returns to the
gold standard, conferences should be
held with Great Britain with the ann
of making arrangements for these two
countries to return to the gold basis
simultaneously and on a basis that will
give each country the price level 1t
desires.
''3. Remove restrictions upon foreign
exchange dealings which do not involve
export of gold Discontinue the efforts to
keep the dollar at its former gold parity.
The British pound sterling and other
foreign exchanges must advance in the
price-level in the United States. BY
pegging the dollar in foreign exchange,
we have held down our price-level as
completely as though we had not srs-
pended gold payments. We must re-
sumo the free dealings in sterling ana
other foreign exchange. If this does not
suffice, the United States should sell
dollar exchange to depress the price SO
that foreign countries can acquire it as
lower cost to pay their debts to us ana
to use it In buying goods from Amer
ican agriculture and industry. : -
a. It should be announced forth
with that prior to lifting the embargo
on gold at future date, it will be the
policy of the United States to revalue
gold. 1t Is the opinion of the committee
that in this revaluation, the United States
Treasury should raise the price of gold
from $20.67 per ounce to a new price
Of $36.17 per ounce. This is an in
crease of rs per cent-an arbitrary
temporary level, estimated to bring the
commodity price level to 1926 base.
80
Sterilization Board.
IS. A Federal non-partisan board
should be created to stabilize the United
States general price level Of wholesale
commodity prices at 100. This Is the
average of the United States Bureau of
Labor price levels from 1921 to 1880.
The committee says that if this pro-
gram was adopted it would "have as
its object the immediate increase of
prices and continuing increase that
will gradually carry prices back to where
they were in 1926"
In discussing suggestion No. 4, the
report saida
"The mere knowledge that such a
program Of establishing a higher dollar
rrice for gold is planned would start the
price level upward.
Such basis commodities as cotton,
wheat, hides and copper would rise
rapidly. This price increase would
quickly spread to other products.
Consumers would begin to buy, deal
ers and wholesalers would buy from
manufacturers, and industry would be
set in motion.
World commodities would continue
to exchange for practically the same.
amount of gold as previously, but each
ounce would represent larger number
OF dollars in the United States.
AT this point new stabilization
board would operate to maintain the
then existing price level within mar
row range of f1uctuation."
Signers of Report.
The report said that in February the
committee forecast among other things
the impending need for (a) embargo of
gold exports, and (b) suspension of
specie payments, as prerequisite to res
toration of price levels within the
United States, and these two steps are
now accomplished facts"
The signers are Lessing j. Rosenwald,
chairman, Sears, Roebuck g. Co.. F. H.
Sexauer, president, Dairymen's League
Cooperative Association; F. H. Frazier,
chairman, General Baking Co.; Vincent
Bendix, president, Bendix Aviation Co.,
and ]. H. Rand. president, Remington
Rand Co., as members of the Directing
Committee
Among the 100 other signers are
Phillip K. Wrigley. president, William
Wrigley, jr., Co.; L. j. Taber, master,
National Grange; Irving Fisher Yale
economist; F. c. Williams, investment
banker; E. L. Cord, president, Cord Cor
poration.
CHASE BANK REFORMS