Evening star., 1934-02-03
Sum Paid Into General Fund
Wipes Out Deficit of
$1,922,598,173.
900, ,OO0.0 900 ESTIMATE
FOR YEAR END STANDS
Net Cash Balance Sets Record of
$4,434,7l3,l55, Indicating
Increased Profit.
BY the Associated Press.

BY the Associated Press.
The dollar profit to the Government
on President Roosevelts devaluation
order wos given today by the Treasury
as 81 805, ,5l2 ,060.
This tremendous sum. paid into the
general fund" wiped out the Federal
deficit which stood yesterday at
81 1922 .598,173 and gave a surplus on
the years expenditures to date of
S973.7l6.937.
Unless Secretary Morgenthau should
decide to use some of this profit to
meet current expenditures-whic he
has said the Treasury does not plan
to do-the year -end deficit still will
reach the $1,000 10000 estimated by
President Roosevelt
The Treasury also announced the
new dollar value of its gold supply
at s7.0l8,263 925.7O
The profit on the gold was paid
into the general fund of the Treas
ury and put the net cash balance at
a record figure of 81 $4,434,7l3,l5518.
May Reach $4,000, 600, 900.
At this rate the profit on the gold
/ by the devaluation order may reach
5000 600, 900 as more boarded gold
trickles into the banks.
Gold in the general fund Of the
Treasury was carried at S3132 ,484 053.
as compared with yesterdays figure
on the basis of the old dollar of
Sl40,7285l8.
The Treasury statement showed no
separate breakdown for the huge
$1,000 100000 stabiliZation fund. but
simply carried it Jumped in with the
total gold in the general fund.
Secretary Morgenthau has stated
repeatedly that he plans to meet re-
covery cost by orthodox borrowing
methods. but all the gold profit above
the $4,000 100000 fund was available
/ for spending should the Treasury
adopt this policy.
The gold in the general fund is
that which is unobligated-not being
used to support currency. either Fed
eral Reserve or United States.
Fund Held Intact.
Meanwhile, the Treasury was dis
| closed today to have virtually intact
its entire $4,000. 100000 stack of blue
chips for playing in the interna-
tional money game.
1t was reported authoritatively at
| the Treasury, where Secretary Nor
genthau and his experts are studying
minutely dollar gyrations abroad. that
the United States has yet to employ
its huge stabiliza ton fund in foreign
exchange markets.
Likewise it was stated that the
fund has not been used to purchase
Government securities, another of its
major functions
Officials remained mum today, just
as they said they would, concerning
reports that preliminary communica-
tions already had been exchanged
with Great Britain on money matters.
Both London and Washington, how
ever. continued to hear whispers that,
If not already started. conversations
pertaining in part to stabilization were
imminent. London heard rumors of
negotiations through diplomatic chan
nels, with a conference to be held
there later
Reports Unc0nfirmed.
Reports here, which were not off,
cially confirmed, mentioned the pos
sibility of scme communication be-
tween George L. Harrison. governor
Of the New York Federal Reserve
Bank and a British fiscal agent.
AS for this Governments actions
since devaluation of the gold dollar
by 4094 per cent. it was said gold
has been bought by Treasury agencies.
but this may be done without using
the stabilization fund.
An issue of s35 in gold certificates
to the New York Reserve Bank to pay
for an ounce of gold need not disturb
the stabilization fund, for the ounce
of gold obtained would constitute the
backing for the money and involve no
profit or loss.
Disclosure that the Treasury, SO far
has kept its hands off foreign ex-
change led observers to believe Presi-
dent Roosevelt is following a trend
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