Evening star., 1933-09-17
THOMAS PUSHES
3 IMITATION FIGHT
QUESTIONABLE to Members
of Congress Shows Major
ity Favor Plan.
BY G. GOULD LINCOLN.

of developing strongly during the COM
ing week.
Senator Thomas of Oklahoma, author
Of the imitation amendment to the farm
relief act in the last session Of Con-
gress, has received his first batch Of
answers to the questionable he sent to
every member of the Senate and to each
member of the House, asking If they
.asored currency imitation at this :ime.
Gu. of more than half hundred tele-
sfams he had received up to last night
il reply. the great majority strongly
supported the proposal for imitation.
Only handful of the members who
have so far responded have been in
opposition; Incidentally. they have been
from the Eastern and Northern States.
Two Republicans, Senator Barbour Of
New Jersey. and Representative Allen
T. Treadway Of Massachusetts,. ranking
Republican membar of the House Ways
and Means Committee. fatty opposed
currency imitation. One Democrat. Rep
resentative Studley, representative at
large from New York, replied: Il am
entirely satisfied to leave solution Of
all currency question to the President
and his cabinet
Citizens Oppose Imitation.
Representative Treadway said In his
reply to Senator Thomas: Financial
interest and citizens throughout my dis
trict strongly protest against currency
imitation. Am wiring the President &C
cordingly"
Senator Barbour said: II am not In
sympathy with any initiation Of the cur
rency or issuance Of fiat money"
1t is the purpose of Senator Thomas
to go to the President with the results
OF his canvass of the membership of
the Congress within a few days He
is counting, moreover. upon having
resolutions supporting imitation adopted
by a meeting Of the representatives Of
the cotton farmers. which is to be held
at the Hamilton Hotel here tomorrow,
and also by meeting Of farm repre-
sentatives in Chicago.
The Senator from Oklahoma believes
that the first step for increased cur
rency in circulation should be taken
through the purchase of Government
securities by the Federal Reserve banks.
as provided in his amendment to the
farm relief bill. This operation, he said
last night. has been on the increase
reaching $4,000 900 last week But
he would have it vastly increased
His second step would be to have the
Government issue Treasury notes in ac-
cordance with the terms Of the Thomas
amendment, authorizing $4,000, 100000
Of such notes to be used to purchase
Government obligations.
Opposes Cut in Gold Content.
Senator Thomas is opposed at this
time to a reduction in the content of
the gold dollar. third plan for infia-
ton in the Thomas amendment. on the
ground that it would tend to stabilize
the dollar at fixed value, when it
should be still more devalued. Also he
takes the position that those banks
and persons who hold gold in this
country and gold certificates would
double their wealth If the gold content
was cut, for example, one-half The
Government itself he contends, should
have all this gold before the gold cor
tent is reduced
Despite the fact that the purchass
Of Government securities by the Fed
last week, thereby placing in circula-
ton that amount of money, the cur
rency in circulation actually decreased
by s83,000,000, making the none,
stringency that much greater. accord
ing to Senator Thomas. He explained
the decrease in currency that the banks
have undertaken to pay off their OBJ
legations to the Federal Reserve banks
as rapidly as they have had the money
from the sale of bonds. and even more
rapidly. On September the amount
100000. With an additional $37,000.-
900 put out by the Federal Reserve
banks for the purchase Of Government
securities. this was increased to S., 1885,
100000. But on September II it was
found that the currency in circulation
had shrunk to S5602 900 900, or s83-
100000 less than the total on Septem-
Der 7.
Insists on Treasury Notes.
Senator Thomas contends that i.
the operation in Government securi-
ties is kept up on a large scale, event.
ually the banks will have been able to
pay off their obligations to the Fed
eral Reserve banks and will have
money piling up in huge quantities
in their vaults. They will perforce be
then more willing to lend it to bor-
rowers who wish to use money in in
dustrial enterprises. But he sees this
slower method of getting more money
in circulation and insists that the use
of the Treasury notes should be begun
very soon to speed up currency eX-
pansion and to put money into cir
culation.
The imitation bloc" in Congress.
which Senator Thomas is now busy
Organizing through his questionnaire.
already includes Senator Pat Harri-
son Of Mississippi, chairman Of the
Finance Committee, and Senator
Fletcher Of Florida, chairman of the
Committee on Banking and Currency.
to Senator Thomas to count them
in as favorable to rational imitation
include Senator George Of Georgia,
Mrs Caraway of Arkansas. Senator
Nicely of West Virginia, and Senator
Logan of Kentucky. all Democrats
Senator Van Nuys of Indiana, Demo
crat, issued statement yesterday IN
which he said he was in full SYM
pathy with the efforts being made bv
Senator Fletcher of the Banking and
Currency Committee to bring about al
House Members Approve.
Among the House members who have
responded that they favor Senator
Thomas demand and the demand of
Senators Harrison and Fletcher for in
1ation are the following: Representa-
tives Bankhead, Alabama; Sinclair.
Goldsborough. Maryland; Rankin,
Mississippi Mrs Mccarthy, Kansas;
Marland. Oklahoma: Gilchrest, Iowa;
Ellzel, Mississippi; Scrugham. Nevada;
Tarver Georgia; Hilderbrandt, South
Dakota; Howard, Nebraska; May. Ken
lucky; Gray, Indiana; Randolph, West
Virginia; Wilmington, Mississippi;
Glover, Arkansas; Boland, Pennsyl-
vania: Peterson, Florida Green,
Florida; Dobbins, Illinois: Willford
Iowa; Fiesinger. Ohio; Eagle, Texas:
Fulmer, South Carolina; Donero.
Michigan; Richards. South Carolina;
Sears. Florida; Martin, Colorado: Mes
bit, Illinois; Carpenter, Nebraska; Tay-
lor, South Carolina: Cravens, Arkansas:
Warren. North Carolina: Cross, Texas:
Cartwright, Oklahoma; Hamilton. Ken
tucky: Derouen. Louisiana; Hill. Wash
ington, McFarlane, Texas, and Duncan;