The Waterbury Democrat., 1933-11-23

 Suspicion of a plan to depress the as a means of opposing President Roosevelt's monetary policies has tmpelled the New York Federal Re- serve bank to begin an investiga- tion on a wide scale, it was learned to-day.
 Member banks of the New York district have been ordered to re- veal their holdings of government bonds as of each days since Octo- Der 30, when an almost unexampled depression in government securi- ties began.
 The motive is to find first why the market in government issues has reached five to six times its normal level; secondly whether short selling. so bitterly attacked under President Hoover's admin tstration, has been in part respon- sible for the market and the de- - clines.
 Federal Reserve bankers were reported to be suspicious that veal thy men and corporations might be selling the bonds short. In an eff fort to disclose the motives behind the selling-actual or spectacula- tive-the Reserve bank has gone beyond its request to member banks and has brought bond deal CTS into the investigation. The dealers have been asked to tell F not only their holdings for each day and their operations but to say whether they have aided in short selling operations by lending bonds for use in such operations.
 BY RICHARD l.. GRIDLEY
 United Press Staff Correspondent)
 Washington, Nov 23.-(UP)- Government money was being thrown into the bond market to- ( day to halt a decline of government issues. Meanwhile, the country's best known economists and mone- tary experts lined up for and against the presidents gold buying plan to raise commodity prices. In- flation was the bone of contention.
 Acting Secretary of the Treasury Henry Morgenthau, Jr, announced large sums were available to sup port government issues Tn the bond market. He said government re- purchase of it's own bonds already @ had started through the Federal Reserve bank of New York. He did not reveal the extent of these Z purchases.
 The debate set off by the resig- nation of Professor Oliver M. w. Sprague as special advisor of the secretary of the treasury, took in " more and more of Americas ac- ncepted financial authorities. Sprague feared the presidents gold buying plan might lead to uncon- trolled imitation and thought it T., Secretary of the Treasury William H. Woodin, on sick leave, immedi- ately and emphatically disagreed. Last night at Philadelphia a forum found James P. Warburg, New York banker and Dr r. Cyril James a teacher, agreeing in principle with Sprague while Professor Irv- ing Fisher, of Yale, and Senator Elmer Thomas, (dem, Okla.) sup ported the administration meas ures.
 The funds for government pur- .chases of it's bonds we're coming from idle money of the Postal Sav- ings system, the farm credit ad- ministration. tho Federal Deposit Insurance corporation and the gov ernment sinking fund.
 Morgenthau refused to divulge the extent of the funds of these or ganizations for fear he would "tip off speculators.'' He prom ised however, to report weekly purchases the following Monday.
 Simultaneously, Morgenthau re- faxed a rigid rule against treasury officials giving news to newspaper men. Vigorous protests and charg- es of "censorship" brought a nodi- .fication of the order making heads .'of departments free to disclose news of a factua1 nature.
 , Decision to support the govern ,ment bond market represented a quick return to a policy that nao been abandoned. The Federal Re- serve system acquired $60O,Oo0'- l 1000 of the securities during the summer, in operations which were regarded as important in keeping ,rroyernment bonds above par. Re- cent withdrawal of this support contributed to a wide decline. Without obtaining new recovery money and excluding nearly a bile lion dollars of treasury short term sbills falling due weekly; the gov Aernment in the next six months must meet the following securities maturities either through paying cash, or refunding with new issues.
 December 15, & per cent certifi- cates $254,364,500. <.
 December 15. AZ per cent certi- cates $473,32S,000. .
 March IS. 4 per cent certifi- cates $46O,O99,000.
 April 15, called 4th Liberty Loan $1.O0O, ,000,
 May 2, per cent notes $244,- 234.600.
 Only small part of the maturi- ties could be met with the cur rent cash treasury balance of s1,2S0,O76,537 as of November 20. Most of these funds are expected to be devoted to recovery and relief needs through the winter.
 The views and opinions expressed by experts, official and statesmen, in summarized form, follow:
 Secretary of the Treasury Wood- in--..In any way to suggest that United States government bonds are. or can be, or will be in any scrke bad securities is a reflection .A