The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-11-10

Essss& ~ SSS&
depreciation policy
oI. eeorser' which is being tried,
"a'e" were among the con-
ferees, naturally, and the partial fail
ure of the plan was put up to them.
They then told the President that it
would be necessary to force down the
value of the dollar in the foreign eX-
changes as well as at home, and that
If that were done the scheme was sure
to work.
The purchase of gold abroad is I'M
dertaken by the Reconstruction
Finance corporation, as is that in
America, by direction of Mr.. Roose-
welt. 1t is preliminary to revaluation
of the dollar and establishment of the
Presidents plan for a managed cur
rency. In Washington it is the opin-
ion of observers that conservatism in
finance is being gradually abandoned
and that the dollar will ultimately be
forced down to a 5O-cent value. Bro
kers in Wall Street were frankly con-
fused and avoided any extensive mar
ket operations. They agreed that the
effect of the Presidents new eXposi-
ton of policy was another hypodermic
Injection designed to revive the drOOp-
ing market. Some financiers believe
the result of the administrations pro-
gram will be a virtual suspension of
gold payments throughout the world.
They hold that an early effect will
likely be currency depreciation race
between the United States and Great
Britain; that France might well be
drawn into such contest, and that if
France abandons the gold standard,
Holland and Switzerland would have
to follow suit This was the view
generally held in London. The Daily
Mails financial editor said it was
probable that the dollar will depre-
ciate both against sterling and gold
currencies." He saw likelihood that
the pound will depreciate against the
franc and the sterling price Of gold
will rise"
Meeting with President Roosevelt
and the professional authors of the
gold plan were Acting Secretary of
the Treasury Dean Acheson, Gov. Eu-
gene Black of the federal reserve
board, George L. Harrison, governor,
and J. e. Crane and Fred I. Kent of
the Federal Reserve bank of New
York; Henry Morgenthau, Jr., COVER
nor of the farm credit administration;
Jesse II. Jones, chairman of the Re-
construction Finance corporation;
and Henry Bruere, the Presidents
financial co-ordinator.
At least some of these gentlemen
have formerly opposed any program
that smacks of imitation but the Pres
ident evidently felt the Warren-Rogers
plan was an experiment that deserved
a trial Its extension to world mar
kets probably will require billions of
dollars. Undoubtedly there will be a
great drain on the gold of the Bank
of France, and that may bring on a
counter move by France.
That Great Britain feared currency
war was made evident when Sir Fred
erick Leith-Ross, British treasury ex-
pert who came to Washington to dis
cuss war debts, hurriedly consulted
with Mr.. Acheson and Mr.. Black and
concocted with them a tentative plan
for sterilization of the American and
British currencies in relation to each
other or to gold. This was submitted
to President Roosevelt and cabled to
the government in London.
ATE developments concerning the
- recovery program include these
events:
Counsel for an employees brother
hood obtained temporary injunction
restraining the New York Edison COM
pany from violating the NRA and the
unemployment agreement.
President Roosevelt settled two dis
putes with the steel industry. He OBJ
tanned Substantial agreement be-
tween the United Mine Workers and
the captive mines of Pennsylvania op-
Grated by the steel companies, forcing
the latter to accept the checkoff sys-
TEN. He ended the differences between
Transportation Co-ordinator ]. B. East
man and the steel companies over the
price of rails to be bought by the rail-
ways with money loaned by the gov
eminent, by setting price halfway
between that asked by the companies
and that demanded by Eastman.
The Ford dealer whose bid was re-
jected by the government because
Ford had not signed the NRA sued to
prevent the award of the contract to
the next lowest bidder.
More than 300 charges that the Ford
Motor company is violating the NRA
automobile code provisions were dis
missed as mot legitimate" by the De
troit compliance board.
PROMOTERS of the national farm
ers' strike were forced to concede
that their effort had fallen short of ex-
pectations, but they declared the strike
would continue and spread, and that
the farmers would not be satisfied with
anything less than a guaranty of cost
reproduction prices. Though pickets
were out on many highways in the
six states directly involved in the
strike activities, grains, produce, milk
and live stock were moving to markets
about as freely as before. Prices ap-
parently were no higher. except in the
rase of eggs. Opposition to the strike
was encountered in Iowa and Wiscon-