Evening star., 1933-02-16
HEAD
TO DISCUSS DEBTS
Insurance Leader Says He
Will Tell Senators Sanctity
of Contracts Must Stand.
Nv the Associated Press

BY tne Associated PreSS.
e. D. Dufaeld. president Of the Pru-
Dental Life Insurance Co, heavy holder
Of farm and urban mortgages, today
told newspaper men he would insist be-
fore the Senate Finance Committee
that there be no legislative impairment
Of the sanctity Of contracts He made
no reference, however, to any pending
measures
The insurance executive, who ap-
peared before the committee this morn
Ing in Its survey of ways to bring back
better times, will resume his statement
this afternoon and 60 into the phase
OF private debts in detail.
Senator Couzens. Republican. of
Michigan, and other committee mem
bers had just started to ask him about
the debts when Chairman Smoot ad-
journed the session until afternoon.
Prior to this. Duffield had contended
. restoration Of confidence was neces-
sary to restore prosperity. He said as
long as fear of what may happen pre-
walls, "it win be impossible for business
to advance, industry to recover or agri-
culture to receive the fruits of its labor"
He advocated o sound money policy
Just after the committee heard from
WILL E1yidIl, OI new
York, plea for imitation Of the cur
rency through legal tender notes; the
addition Of silver to the monetary base,
or reduction of the gold content of the
dollar should it be found there was
sufficient gold In the world to make this
possible.
Hylan Hits Reserve System.
Hylan, appearing as president OF the
Monetary Reform League. included in
his statement a sharp denunciation Of
banking policies and the Federal Re
serve System. He said:
The irresistible conclusion must be
reached that, fundamentally, the present
industrial and trade depression was
caused and still exists by reason of an
insufficient and inadequate world and
national medium of exchange and by
the attendant circumstances OF the de-
nation Of currency and credit resulting
from the control which the Federal Re-
serve Board has exercised over currency
and credit.
Hylan assailed loans Of the Recon-
struction Finance Corporation. which
he said the banks rode for billions"
and added:
The banks thus were enabled to
unload on the Government many un-
A"Ao H&10 bCS AL0 VI OK
burden Of frozen assets OF improbable
issues"
To expand the currency, he proposed
either the addition Of another metal
such as silver, to the monetary base.
or reduction Of the gold content of the
dollar.
Hylan attributed to the bankers a
policy OF utter selfshness In control
and manipulation Of the currency" He
said:
The greatest sham of the age. sue
cessfully operated all over the world.
which has made all mankind its VIC
tins. has been the plan of inducing
foreign governments to adopt the gold
standard. and under the pretense of
stabiliMng their currencies, making
them large loans at high rates Of in
terest.
This has already brought many of
these countries to the verge of bank
ruptcy and greatly contributed to our
present ruinous plight"
In q telegram to the committee yes
terday, Q six-point program including
budget balancing, war debt readtust-
ment and tariff revision was offered by
John w. Davis, Democratic presidential
nominee in 1924, rs way to lift the
country out Of depression.
Davis said he had long since ceased
TO believe In governmental miracles or
legislative cure-alls, asserting the de-
preston could not be cured by any
single remedy
The country IN my Judgment Is more
In need OF surgery than Of opiates,"
he said.
Outlines His Program.
ITO my mind the most helpful thing
Congress can do is to devote itself to
the obvious things that lie close at
hand. trusting the future for further
guidance.
Among these things I, put:
i. Balancing the budget by radical
and drastic economy and general taxes
including sales tax If no better plan
Is offered.
%. Reducing the swollen and ex-
cessiye appropriations to veterans
j. Revising the tariff with delib-
erss. crate purpose OF promoting foreign
q. Readjusting the foreign debt set
Elements.
IS. Repeating the eighteenth amend
ment.
"e. Abolishing. consolidating and re-
ducing Government agencies and Gov
ernmental activities"
Balancing the budget and no tamper-
ing with the currency were urged earlier
by Myron Taylor, chairman Of the
board of the United States Steel Cor
poration.
Daniel Willard. president of the Bal
umore d. Ohio Railroad, in letter put
into the committee record by Senator
Harrison, Democrat. Of Mississippi,
sponsored cancellation of war debts and
a balanced budget.
jackson Reynolds, president of the
First National Bank Of New York City,
urged that the country's expenditures
be reduced to the level of its income.
vanderlip Backs Silver.
Frank A. Vanderlip, former presi-
dent of the National City Bank of New
York, in two-hour appearance behind
closed doors yesterday, suggested add
ing silver to the metallic base Of the
currency and balancing the budget. He
would not tell newspaper men what he
had proposed, but some committee
members said these were the main
points he brought out,
The committee also released letters
from Alfred p. Sloan. jr., president of
the General Motors Corporation. and.
AVIAN Macauley, president of the Pack
ara Motor Car Co., each OF whom had
been invited TO appear, but asked to be
excused.
Your Income Taxi