The Washington times., 1933-11-18
INDUSTR|AL|STS
JOIN SENATORS
IN QU|ZPLEA
New York Banking Bloc Gets
Blame; Bond Price Slump
Cited as Evidence

BY International News Service
Administrative aides of PreSi-
dent Roosevelt were considering
today preliminary inquiry into
highly sensational charges that a
New York banking bloc has en-
gagged in a conspiracy to weaken
the Nations credit.
The charges were masked be-
hind formal resolution adopted
by an inflationist group which in
cluded three Senators and several
prominent industrialiStS. The
resolution requested q Presidential
inquiry into false and wilful
misrepresentation by certain we'll
known groups"
Short Selling Charged
Members of the inflationist
group, at a meeting held behind
locked doors in the Senate office
building, discussed startling evil
dence that the severe decline in
Government bonds which began a
few days ago involved large-scale
short selling. Powerful bankers,
one member of the inflationist
conference asserted, connived with
spectators in these operations.
At least 100000 in Govern
ment bonds from the portfolio of
one New York bank we're loaned
to a Speculator for short-sale pur-
poses, at an interest rate of a
Sixty-fourth of a cent, the infla-
tioniStS were told.
The name of an official of the
New York Federal reserve bank
figured in the secret discussions
preceding the demand for an in
quiry.
Called Last-Ditch Fight
The motive for the short-selling
and other activities declared to
have been promoted by the bank
ing bloc was explained by the in
flationiSts as "a last-ditch fight
against Presidential control over
currency and credit"
The bankers were represented
as being determined to diScredlt
the Presidents gold buying pro-
gram; halt any initiation, and Sc
cure a fresh grip on the nations
monetary policies.
Among the persons requesting
the President to investigate the
situation we're Senator Pat Har-
rison CD of Mississippi, Finance
Committee chairman; Senator
Smith CD of South Carolina,
head of the Senate Agriculture
Committee. and Senator Thomas
CD of Oklahoma, author of the
initiation amendments to the farm
bill.
IndustriaIists Included
The group also included James
H. Rand, jr., president of the
Remington-Rand Corporation and
chairman of the committee for
the nation; Prof. Irving Fisher,
of Yale University, noted econ
omist; Robert M. Harriss, one Of
the governors of the New York
Cotton Exchange; and George
Leblanc, a personal representa-
tive of Leasing Rosenwald, OF
Sears, Roebuck & Co.
All of these men took part in
framing the resolution.
Specific evidence to support
the conspiracy charge has been
gathered by the Committee for
the Nation, the inflationists were
informed.
Misrepresentation Alleged
The resolution, after pledging
support for the gold buying pro-
gram and urging eventual dollar
Sterilization at the 1925 COM
modify price level, declared:
1--WE condemn the false and
wilful Misrepresentation, ema-
mating from certain well known
groups at home and abroad,
against the Presidents none
tary policy. These miSrepre-
sensations are calculated to
create unwarranted fear and
tend to undermine the Govern
ment's credit.
1--WE request the President to
call upon the appropriate
agency of the Government to
investigate Immediately and
ascertain the attractions of law
involved"