Evening star., 1934-01-25
Continued From First Pase.)

Democratic and Republican sides.
The question Of control of the
stabilization fund was before the Senate
today, with Republicans and a small
group Of Democrats standing for the
Banking Committees board plan despite
the Presidents opposition.
Five and one-half hours OF wrestling
with the intricacies Of the money
problem yesterday brought a vigorous
assault upon the measure from SEN
ator Glass Of Virginia, a Democratic
authority on banking and currency
legislation: a combined Endorsement
and attack from Senator Walcott. Re-
publican, Of Connecticut, and deter
mined defense by Robinson of Arkan-
sas. the Democratic leader; Fletcher of
Florida, chairman OF the Banking
Committee: Barkley Of Kentucky,
committee member, and Connally Of
Texas
Glass declared the measure was
dishonest" would result in the dollars
going to its post Civil War value.
opposed selling the gold Of the Reserve
banks and pleaded for the amendment
providing q stabilization board to keep
too much power from Being placed in
the hands OF the Secretary Of the
Treasury.
Senate Listens Intently.
The Senators sat around in circle
to hear the views of Glass, though his
words carried well into the crowded
galleries.
Il know the gold dollar has, by an
invalid and indecent process-for which
no human being can find rational ex-
cuse or reasonable justification-been
devalued abroad" Glass said. "and I
know it is going to be devalued at
home and I am not going to waste
strength protesting against it.
Nor will I protest further against
appropriation by the Government of
nearly 100000, 900, not dollar of
which it has lifted its fingers to ac-
quire or honestly acquired.
Every dollar was acquired by the
Federal Reserve banks through the
skill and acumen of $4,000 bankers
throughout the country in daily cur
rent transactions"
Glass added the stockholders Of the
Reserve banks had taken the double
liability risk and supplied all the capi-
tai which had resulted in the Reserve
bank profits.
Challenges Barkley.
1luSc UOk Tile IlOOI 10 CIldueTEe d
defense of the administration bill by
Senator Barkley.
The Senator Is a wonderful psy-
chologist when he assumes the American
people will have more confidence in
currency that Is irredeemable than in a
currency that is redeemable," Glass said
Make no mistake about the fact. this
bill provides an irredeemable currency.
The fact is that every Treasury note
and every Federal Reserve note issued
has q lie on its face"
Then. holding up to the Senate a $40
bill, Glass said it was not $40. but a
mere promise to pay. and that the
Treasury would not cash 1t, despite the
promise
Il should think that would impair, If
eventually it wouldn't destroy, the con-
fidence Of the plain people who don't
understand all these statistics" he said
Glass recalled that after the Civil
War the paper dollar was worth only
"a cents. and predicted IF we proceed
American money would be worth that
again.
Doubts Currency Increase.
Glass told Borah the bill would not
necessarily increase the volume of cur
rency lone single dollar"
Il want these miScalled profits as well
as the principal (of the gold).'' he said.
"in the hands OF the Federal Reserve
Banks. Why? Because it would twice
over again enable them, if you are
going to devalue, to respond to the re-
quirements Of commerce. industry and
agriculture. and more readily and at
lower interest rates.
If any profit is to be used by the
Treasury to start printing presses. it
isn't needed for that. II We are going
to start the printing press, just start
it. What's the use Of having any gold
behind it when this currency is ire
deemable in gold?"
He said he preferred the proposed
board Of five to administer the fund to
. single man control.
Cites British Effort.
He said the British sterilization fund
was in the hands Of three experienced
persons who are career men," with in
innate knowledge of foreign exchange
In all its aspects.
Nobody ever suggests this board
might be called q town meeting" he
said. referring to informal comments
from Democratic leaders:
0CA0tOA Dol A4Cy COlu 6IdoS VIC tAllCC
Englishmen. however, were members Of
the treasury and no outsiders" were
on the board.
But they are men who have mowl-
edge Of what they are doing" Glass
retorted, adding Secretary Morgenthau,
whom the administration wants as sole
administrator, was an "estimable young
gentleman, worthy and lovable," but
had had little or no experience as q
banker or in foreign exchange.
Answered by Robinson.
Glass said he did not know whether
1t was so, but 1t had been contended in
the House of Commons that the British
board was not being used for the pur-
poses for which it was created.
Senator Robinson said the implication
OF this was that I'VE are creating an
equalization fund which would be used
in q different manner than that In the
hands Of British authorities"