Evening star., 1934-03-01
M0RGENTHAUASKS
CONTINUANCE OF
MONETARY POLICY
Tells Senate Group More
Experience Is Needed
to Fix Program.
CONFESSES PRESENT
PLAN is EXPERIMENT
Declares Treasury Is Working
on 24-Hour Day-to-Day
Schedule.
BY the Associated Press.

BY the Associated Press.
The administrations desire to try
present monetary plans for at least
the remainder of this fiscal year be-
fore fixed policy is determined upon
was conveyed to Congress today by
Secretary Morgenthau.
Testifying before a House Banking
Subcommittee on bill to establish a
central Federal authority with sole
currency issuing powers, Morgenthau
said:
Il think this study the committee
Is making is very worthwhile and i'm
portant. The country has just come
through one Of the most difficult
financial crises it ever had, and we
are just beginning to see little light.
What the future monetary policy
Of our country should be I don't think
any body is sufficiently wise to tell
you, because We haven't had enough
experience"
Believes Experience Needed.
Recounting steps that have been
taken by the administration, he
added:
1T is impossible to tell what the
future will be. I believe that We need
more experience and time to tell us
what is the best way to handle none
tary problems before we get into any,
thing specific or definite as is con-
templated, perhaps. in this bill.
We hope that Congress will give
us at least the balance Of this year
to work on our present plan Then
We will know a little more about it."
Il take it," asked Representative
Hancock. Democrat. of North Car
oline, that your position is that the
present monetary policy is more or
less an experiment and it is not your
recommendation that Congress take
any action to change the present
system?"
That's right" Morgenthau an
swered.
Business Getting Better.
Fortunately. since I've been in Of
Ace" Morgenthau continued, "busi-
ness has been getting a little better
from day to day. I don't know OF
any one who is smart enough to tell
us exactly where We will be six
months or a year from now.
But the Government is doing the
leading and is not being led. for the
first time Whether this will continue
I don't know"
He said that since February. 1898
the world gold price had risen 6s
per cent and farm products 81 pei
cent.
The higher the world price of gold
the higher that of commodities?
asked Representative Cross, Democrat
OF Texas.
That's certainly the way it seem.
to have been working" the Treasury
Secretary answered. The record or
price levels seems to show our present
plan is working. I'D like to see it triec
little longer.
But if it stopped working. if price:
suddenly took nose dive. I might bt
up here tomorrow morning begging fol-
something.
On 24-HOur Basis.
THE previous administrations tried
a good many things that didn't work;
we've got something that is. and I'd
like to 90 along with it. However. the
Treasury is operating on 24-hour
day-to- day basis
Asked by Representative Scrugham
Democrat. Of Nevada, whether the
present silver program had had any
appreciable effect on world prices OF
the purchasing power of other ma
tions. Morgenthau replied:
I'VE have been unable to so sepa-
rate things that We could say that
silver alone had this effect or that
effect on prices"
He added that the United States
purchase program called for only a
relatively inconsiderable amount OF
silver. but contended that if all coun-
tries ratified the world silver agree
ment that can't help but have q
beneficial effect"