Evening star., 1933-05-29
Democratic Strength Limits
Time Further With
Passage Foreseen.
MEASURE STILL OPEN
FOR AMENDMENT MOVE
Report From Banking Committee
Backs Constitutional Power of
Congress to Enact New Law.
BY the Associated Press.

BY the Associated Press.
The House Democratic strength
showed the bill killing the gold clause
in all contracts toward quick enact
ment today. having that congressional
branch authorize procedure for its con-
Sideration under which only three
hours debate will be permitted.
On voice vote, after but an hours
debate, the rule was approved.
The bill is open to amendment how
ever, and indications are that action
will come late in the day.
Adoption of the rule for considera-
ton indicated the resolution would have
little difficulty in receiving House ap-
proval, although Republicans vigorously
assailed the proposition as repudiating
both Government and private obliga-
tons by banning the gold clause from
all present and future contracts.
Initiation Praised.
In the House debate, Rankin, Demo-
crat, of Mississippi, praised inflationary
moves, saying that in the few weeks
since the Presidents program had
been put In motion the price of wheat
had gone up, that corn had increased
nearly three times and cotton almost
two times.
Ills Is tIlc greatest Stcp GIldI Ldo
ever been taken by government in
all the history of government" he said,
ut will bring new day, new hope
and new prosperity"
In the Republican attack on the bill,
Representatives Mapes of Michigan told
the House: This constituted a decia-
ration to the world that the Govern
ment of the United States does not in
tend to keep its word: that it repudiates
contracts and obligations made, issued
and accepted in good faith"
THE United States is not bankrupt" :"
Mapes said. We've got more money
now than we've ever had"
Eyes, inquired Parsons, Democrat, of
Illinois I'VE have a hundred million
dollars in securities payable in gold.
How are you going to do it with three
and half billion dollars?"
Wants Permanency.
"Oh," Mapes replied, I'VE don't have
to do 1t that way This is not a tenn
porary resolution, but permanent
one putting us of the gold standard
forever"
Isn't it true that this resolution in
tends to cheat the creditors of the Gov
ernment?" asked Representative Lehl-
back (Republican) of New Jersey.
Exactly" Mapes replied
Representative Busby DemocraD Of
This. is the day have long hoped we
would reach"
The first Republican to support the
resolution was Representative McGugin
of Kansas. who said: 1T does not make
much difference whether Congress
passes this legislation or not Public
and private debts in this country are
never going to be paid in gold.
There are only two courses. Either
reputation and bankruptcy for the
country, or honestly, openly reducing
the value Of the dollar. I prefer the
latter"
The House was swept into fast action
today by a report from its Banking
Committee. upholding the constitution
al power of Congress to enact such leg
islation.
The bill was approved speedily Satur-
day by both Senate and House Banking
Committees.
Meanwhile Undersecretary of the
Treasury Acheson urged the bills en-
actment, saying 1t was necessary for
the Governments program.
Senator Glass yesterday reiterated his
belief that the administration move
was frank reputation" and was un-
constitutional. He plans to fight it on
the Senate floor
Prepared with the assistance of
Acheson. the committee report on the
bills constitutionality said the admin
istratlon proposal accomplishes three
purposes:
First, it declares the clauses in pub
lie and private obligations, stating that
they are payable in gold or in spe-
ciflc coin or currency, are contrary to
public policy.
Second, it provides that obligations,
public and private. expressed to be pay
able in gold or in specific coin or
currency, may be discharged dollar for
dollar in legal tender. 1t also pro-
vides that no future obligation, public
or private, shall be expressed as pay
able in any specific coin or currency.
Third, it makes certain technical
amendments to the Thomas dnf1ation)
amendment Ito the farm relief bilD,
which are necessary to carry out the
intention of that legislation regarding
what shall be legal tender in the
United States
The report said: The occasion for
the declaration in the resolution that
Continued on Page 2, Column A.