Evening star., 1933-11-27
FEDERAL RESERVE
CHIEF TO CONFER
WITH ROOSEVELT.
Visit to Warm Springs Draws
New Emphasis to Mon
etary Policy.
MORGENTHAU is SILENT
ON RETURN TO CAPITAL
Blacks Trip Recalls Hating of
Systems Purchases of
U. S. Securities.
By the Associated Press.

"A warm springs VlSlL Dy Gov. Eugene
Bl.ck Of the Federal Reserve Board
drew new emphasis to President Roose-
velt's monetary policy today as Acting
Secretary of the Treasury Morgenthau
busted himself with the Governments
huge financing needs.
Black leaves tomorrow night to spend
Wednesday with Mr.. Roosevelt
News of his trip became known only
a few hours after Morgenthau returned
from RO0SeVelt'S Georgia home.
Beyond confirming that he would
make the trip. Black declined to dis
cuSs the visit. Morgenthau had nothing
to say to news men either. but quickly
began conferences on ways of meeting
on December Is more than S727 900 900
in maturing Treasury certificates.
Gold Price Unchanged.
Desite official silence. certain factors
were prominent in the fiscal and money
situation. They included:
The Reconstruction Finance CORPORA
tion price Of gold was fixed today at
s33.76 an ounce, the figure which has
remained unchanged since before Nor
genthau'S trip South. Some quarters
viewed this lack of fiuctuation as part
of a policy to steady financial markets
for the forthcoming financing opera
tions.
Blacks projected visit recalled that
the Federal Reserve System has halted
its purchases of Government securities.
During the Summer it purchased more
than half billion collars in Govern
ment issues
Morgenthau began immediate con-
ferenceS with Thomas Hewes, assistant
secretary in charge of fiscal affairs:
Earl Bailie, administrative assistant in
this field. and Walter j. Cummings,
head of the Deposit Insurance Corpora
tion.
George Harrison, governor Of the New
York Federal Reserve Bank. was
visitor at the Treasury. Harrison
usually is consulted on financing mat
ters.
Banking Situation Good.
The banking situation in the Nation
was described today by Chairman Jesse
H. Jones of the R. F. c, as good"
He said 300 applications have been
received by the corporation from banks
which wish to sell preferred stock on
capital notes, l25 of them having come
in yesterday and today.
-. The corporation has authorized $50
purchases OF stock or notes with a total
face value of S270,000,00O.
Jones said he had heard nothing so
far of credit expansion plans reported
to have been discussed by President
Roosevelt with Acting Secretary Nor
genthau and Hugh Johnson.
He pointed out the corporation has
oeen endeavoring for months to make
credit available to factories and busi-
ness houses in furtherance of the N. r.
A. campaign.
Through organization of community
mortgages companies. Jones said. bust
ness houses can obtain money for man.
ufacturlng and distribution purposes.
and in this way meet the added costs
caused by N. r. A. codes Many thou
sands of letters have been received at
the corporation asking about the ar
rangement, and large number of loans
have been made.
Investment Figures Promised.
Morgenthau made know upon his re-
turn that during the afternoon the
Treasury will announce the amount of
It's investment during the past week In
Government securities.
Considerable interest was created by
the publication Of memorandum at
trlbuted to former Undersecretary Dean
Acheson which termed the gold pur-
chase plan not legal under the r. F. C.
act. At the same time, an opinion
arguing legality was attributed to
Stanley Reed, R. F. c. counsel.
Herbert CASTOR, public relations con-
tactman for Morgenthau. conferred
with the Acting Secretary and then told
newsmen Acheson's opinion apparently
was delivered to the President and that
even if the Treasury had such a docu-
ment in its files. it could not give it
publicity. Reed declined to confirm.
deny or comment.
Acheson, reported to be in his Con-
necticut home, was known to have con-
sidered the plan illegal. His recent de-
parture was regarded as proof of his
lack OF sympathy in the project.
Morgenthau arrived here at $3.50 this
morning. making the last portion of
his trip by airplane in order to reach
his office before the fixing of the gold
price, He was silent as to his con-
VerSatlOnS with President Roosevelt,
and gave no indication of any change
in the administration's monetary policy
despite his hurried return.
Came in Coast Guard Plane,
The Acting Secretary left his train
from the South at Lynchburg.. Va.
Coast Guard plane for the last stage
OF his journey.
He aScribed his return by plane to
desire to put in full day at his desk.
Meanwhile r. L. Owen, former DEM
ocratic Senator from Oklahoma, Joined
supporters of the presidential monetary
program, contending in a statement
that "contractionists'' of the currency,
if their policy were followed would in
tensify the depression and probably
bring a violent plunge into COM
munism."
Owen, one-time chairman of the
Senate Banking Committee, has urged
expansion of the currency and reha-
bilitation of silver for months. In his
statement yesterday, he said the Presi-
dents detectives were for the general
welfare, holding the immediate result
of carrying out the Executives program
would be an era of the greatest pros
perity the world has ever known"
Viewing the gold-buying policy as
an effort to restore price levels, owen
said:
Even if the buying of gold does not
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