Evening star., 1934-01-17
ROOSEVELT HOLDS
HIS MONEY POLICY
UNCONSTITUTIONAL
Administration May Make
Slight Concessions to
Glass on Program.
MEASURE is EXPEDITED
IN HOUSE AND SENATE
vanderlip One of Group Confer
ring With President-silent
on White House Talk.
BY the Associated Press.

BY the Associated Press.
Some slight concessions to Senator
Glass Democrat) of Virginia, the ma
ture of which was withheld for the
time, marked the administrations new
dollar legislation as it was started to-
day through Congress.
Assured of the cDnstitutionality of the
gold-confscation phase, President Roose-
welt discussed his monetary plans briefly
with Frank Vanderlip, New York bank
er; J. H. Rand, jr., chairman OF the
Committee of the Nation, and Robert E.
Wood, president of Sears, Roebuck & Co.
The callers declined to comment on
their talk, but indicated no new action
was in prospect, so far as they knew
Senate Group Gets Bill.
The House Coinage Committee, mean
while, halted its other inquiry into
money questions to speed this latest Off
cial bill on its way, possibly with open
hearings.
Chairman Fletcher of the Senate
Banking Committee put the admlnlstra-
ton measure formally before the SEN
ate, but before the changes made could
be ascertained the draft was shot to the
printers so plentiful copies could be
made available Senators would not
speak of the alterations, said to be main
" of a minor and perfecting nature.
Tartly, Glass commented to news
paper men off the floor that the bill
made one man (Secretary OF the
Treasury central bank, and ne not
q banker"
The measure authorizes the taking
over by the Treasury of all monetary
gold stocks, including that of the Fed
eral Reserve Banks, permits the Presi-
dent to lower the gold value OF the
dollar to between so and go cents and
establishes a sterilization fund Of
100000 900 to be taken from the
profits of gold revaluation.
Has Opinion From Cummings.
President Roosevelt was represented
as we'll satisfied of the constitu-
tionality of his monetary program. He
has an opinion from Attorney General
Cummings supporting 1t.
This was made plain at the White
House in response to inquiries result
ing from an investigation into the con-
stitutionality of the plan ordered by
senatorial committee ranks.
The President received an oral opln-
ion from the Attorney General at the
time this country went of the gold
standard that the Government had the
right to take over the gold held by in
diyiduals and banks. A written opln-
ion along the same line has been made
Mr. Roosevelt smiled AID Wltnheld
comment today on the reaction to his
newly announced plan to FIX the value
of the dollar in terms OF gold at pc
tween so and 60 per cent OF the pres
ent content.
White House aides left no doubt OF
the general satisfaction there at the
proposals reception by the country.
Cummings Writes Opinion.
Meanwhile. opponents of the devalu-
alton bill planned further attack upon
the constitutionality of the proposal.
Despite concessions from even bitter
opponents that the measure would pass
several Republican Senators Joined two
former Democratic Treasury Secretaries
Glass and McAdoo of California-n
raising the question behind closed
doors yesterday.
The Senate group had Attorney Cen
eral Cummings at work today preparing
a written opinion on the validity OF the
proposal The request was made de-
spite the previous report py cummings
that the move was constitutional. .
The House meanwhile had troubles OF
its own. The row between It's bankins isinl
and Coinage COMMITTEES as to which
one should handle the Roosevelt Dill
reached the point where House vote
might become necessary for a decision.
Expecting a comparatively early en-
actment of the devaluation measure,
administration followers today were
arguing about another point-hoW soon
thereafter would the President md II
necessary to issue a proclamation tax
ing part of the gold out of the dollar.
Already Have 60-Cent Dollar.
One school argued that the President
Already had the set-up which coulo
achieve so per cent devaluatlon
through other means; that the current
gold price of S34.45 an ounce alreaoy
made the dollar go per cent one.
These added that under these cir
cunstances the statutory provision that
the dollar must contain 1922 grains
of gold could be left unchanged for a
time. and reduced only when the ex-
nected speculative price rise had spent
itself.
There were others, however, who held
that the speculative rise was being felt
now and that to continue the desired
inward trend the earliest possible
change in the gold content was needed.
The areuers had no indication from
the president himself as to when his
proclamation would be issued, although
he agreed at his Sunday night confer
ence that a proclamation would be
necessary to complete the desired re-
valuation.
Although the question of whether the
Republican minority would oppose the
administration money bill as a group
remained to be settled. there were
added hints of opposition from tnat
side
Although both House and Senate
had other matters before them, both
hoped to expedite the dollar devalua-
summoned for late today to tell the
committee their views.
Sends Bill to Committee.
Fletcher said the bill will anc
ought" to be reported quickly. with
only minor changes. Two Reserve
Board MISUNDERSTOOD. Eugene Blaci
and Adolph Miller-already had de.
cided that if the President was going
70 commander gold in Reserve Banks
they wanted him to have law to bacl
him up.
Chairman Steagall said if he coult
ret the measure before the Banking
Committee I'VE can bring it out afte
= few hours deliberation, because we'v,
already got all the information w
would have If we held hearings for {
month"