Evening star., 1934-01-23
$4,000, 100000 Sterilization
Fund Limited to 2 Years.
Senate Consideration Is in
Prospect Tomorrow.
CREATION OF BOARD
OF CONTROL FAVORED
Fess Assails Legislation as Fiat
and Dishonest" as Debate on
Measure Breaks Out-Morgen-
thau's Acceptance of Proposals
Is Uncertain.
BY the Associated Press.

BY the Associated Press.
Drastically reShaped to make it
temporary instead of permanent
legislation, President Roosevelt's s
monetary bill was approved today
by the Senate Banking Commit
tee and made ready for Senate
consideration tomorrow.
The committee had voted sew
eral notifications, including a
provision making the proposed
$2,OOO,OOO,OOO stabilization fund
temporary.
The important monetary leg
1slation was approved, 1872.
A time limit of two years on
the operation of the stabilization
fund was the most important
modification.
Administration Upheld.
Another amendment would place the
stabilization fund under board of five
instead of vesting complete control in
the Secretary of the Treasury.
The administration was upheld in a
vote to leave title to the gold with the
Federal Reserve System and take the
profits from devaluation through a fran
chise tax on the system.
The committee also placed llmlta-
ton of two years on President Roose-
velt's power to devalue the dollar.
Meanwhile debate over the measure
broke out in the Senate, with Senator
Fess of Ohio assailing it as fiat" and
dishonest" and Senator Robinson of
Arkansas, the Democratic leader, speak
ing in defense.
Treasury officials had no immediate
comment on the Senate committee ac-
ton. but both President Roosevelt and
Secretary Morgenthau we're known to
favor strongly the bill as it passed the
House, giving the Treasury head full
control over the stabilization fund.
Robinson Challenges Fess.
Only Just advised of the Senate ac-
ton. Secretary Morgenthau was study
ing the proposal but whether it would
prove acceptable to the Treasury or a
counter proposal might be offered in
the way of a compromise was not made
known.
Majority Leader Robinson, in chal-
lenging FeSS' assertions. declared Con-
gresS had the right to change the
standard of measuring the gold dollar
when economic conditions warranted.
Does the Senator mean to say"
Robinson asked, that once a monetary
standard is fixed, it can't be changed
by law?"
NO" Fess replied. s'if you have an
90 tn doh hot ic
sented by so many ounces of gold you
can't pay that debt by reducing the
number OF grains in the gold dollar
II you do and issue certificates for the
gold-that much of it is fiat"
Board Is Established.
The vote on limiting the stabilization
fund was IL to 8, Senator Glass, Demo-
crat. of Virginia, was author of the
proposal.
The committee decided the gigantic
fund should be managed by a board
composed of the Secretary of the
Treasury, the controller of the currency,
the governor of the Federal Reserve
Board and two others appointed by the
President.
Senator McAdoo, Democrat, of Cali
fornia, also former Secretary of the
Treasury. introduced the amendment to
leave title to gold with the Federal Re-
serve System and take the profits from
deyaluation through a franchise tax
on the Federal Reserve System.
The McAdoo proposal was recon-,
witnesses during the hearings on the
bill.
The vote on the amendment to limit
the revaluation powers, offered by Sem
ator Bulkley, Democrat, of Ohio. was
l1-8, with Senator Couzens, Republican,
of Michigan, absent instead of vot-
Ing aye.
Record of Votes.
With this exception, the vote on all
three amendments was:
For DemocratS-GlaSs. Bulkley. Gore,
NcAdoo. Adams Republicans-Golds-
borough, Townsend Walcott, Carey,
Couzens. Steiwer and Kean.
Against, Observation-Disclosures Barkley,
costigan, Reynolds, Byrnes. Bankhead
And Fletcher Republican-Norbeck.
A motion by Senator Gore, Democrat,
Of Oklahoma to leave title to the Fed
sral Reserve gold with the banks and
give the Government trusteeship was
downed on an oral vote.
The committee also rejected without
b record vote an amendment offered
BY Senator Kean, Republican. of New
Jersey. to change the revaluation range
from the proposed $3.50 to 65-70 cents.
Senator Gore Not Voting.
Chairman Fletcher said he would file
She report with the Senate today and
ask to take it up for debate tomorrow.
The vote on reporting the modified
bill found only Senator's G0ldsborough
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