Evening star., 1934-01-31
President Will Take Steps to
Shrink Gold Content to
Around 5000.
WILL HOLD FINANCIAL
PARLEY THIS AFTERNOON
Automatic Profit of $2,6S6, 900. 900
Indicated fer United States
Government.

BY ne Associated Press.
Holding absolute control of the Ma
tons monetary gold, President Roose-
welt probably will take before sunset the
step that will shrink the gold behind
each dollar to around so per cent of its
present statutory value
Mr. Roosevelt called his financial
chiefs to meet with him at 2:l5 this
afternoon. From this conference is
expected the presidential proclamation
that will fix the gold dollar value for
an indefinite period.
Title rested in the Government today
to s4O29.1O0.O0O of monetary god, by
latest Treasury figures.
Should the President decree a SO per
cent revaluation-the indicated figure
the United States automatically will
profit by 1856, 100000.
Executive Order Expected.
Almost Immediately after his procla-
nation, Mr.. Roosevelt is expected to
issue an executive order creating a
two billion-dollar stabilization fund out
of these profits.
1t will be welded by himself and
Secretary Morgenthau-who has de-
clared himself ready-to preserve the
price Of the dollar at the desired figure
in foreign exchange and to maintain
the price of Government securities.
The operations will remain secret,
but two main channels are open. BY
buying and selling gold, foreign ex-
change and other instruments of credit,
economic theory holds the dollar abroad
could be raised or lowered.
BY buying Government bonds the
stabilization fund could be used as a
weapon for keeping stable quotations on
months when the Treasury will borrow
SO, 900, 5000
The President today was assured that
the Nations most powerful financial
factors-the Treasury and Federal Re-
serve System-would work as unit in
his managed currency plans.
These pledges we're given him yester-
day by his financial advisors at a con-
ference preceding the signing of the
dollar revaluation bill.
All doubts of full Federal Reserve
Bank operation-prompted by their
opposition to Government capture of
their S3.500 100000 in gold-were re-
moved when an authoritative spokes-
man said after that meeting:
We asked for Legislation and got it.
Now we'll play the game
Ready Cash Jumps.
Meanwhile. the Governments ready
cash balance jumped to a billion and
half today as last weeks billion-dol-
lar borrowing was listed on the Treas
ury's daily accounting sheet.
The exact figure of cash on hand was
81 .489, ,063,226. The recent billion
dollar short-term securities issues con-
tributed two-thirds of this figure
Tremendous prospective expenditures
are expected to push todayS deficit OF
S1.871 100000 to more than $1,000 000,-
600 by the end of the fiscal year and
has necessitated keeping a large supply
of cash on hand
Government spending. including both
routine and emergency. was nearly al
the billion-dollar- month mark. Ir
the first 90 days of January. the latest
figures available. the expenditures stood
at s921.175.O00 for the month and Of
s3.543O O46000 for the year This in
creased rate of spending put the deficit
for the year at sl,871. .S08000 as COM
pared with s1.859,841 900 on the same
date last year. This was the first time
the 1884 fiscal year deficit exceeded the
corresponding 1888 figure. without
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