Evening star., 1934-01-16
ISTEAGALL GIVES
| PURPOSES Of BILL
House Banking Committee
Chairman Cites 10 Major
0bjectives..
BY the Associated Press.

BY the Associated Press.
Chairman Steagall of the House
Banking and Currency Committee yes
terday outlined 10 of the major objec-
tives Of the legislation proposed fol
transfer of Federal Reserve gold stocks
to the Treasury. He said the legisla-
tion:
l. Transfers to the United States the
ownership and possession Of all Federal
Reserve Bank gold dncluding that held
! by the Federal Reserve Board and
Federal Reserve agents. and provides
for payment therefor in gold certifi-
2. Authorizes the Federal Reserve
Banks to maintain reserves against
Federal reserve notes entirely in gold
certificates.
3. Clarifies the Governments power
to regulate the acquisition, transporting
melting or treating, import. export, or
earmarking of gold.
4. Provides forfeiture of gold with
held, acquired, transported melted or
treated. imported, exported, or ear
marked in violation Of this bill or reg
ulations Of the Secretary of the Treas
ury, and also penalty equal to twice
the value of the gold.
No Gold Coinage.
S. Provides that no gold shall here
after be coined, and that no gold shall
hereafter be paid out or delivered by
the United States and that all gold
coin of the United States shall be
Withdrawn from circulation and formed
into bars. There is provision for re-
leasing gold bars to pay foreign bal
ances, and for industrial, professional
and artistic uses. and for other pur-
poses not inconsistent with the bill.
3. Provides that no currency of the
United States shall be redeemed in
gold except to the extent permitted In
regulations issued by the Secretary OF
the Treasury with the approval Of the
President, but that gold certificates
owned by Federal Reserve banks shall
be redeemed at such times and in
such amounts as in the judgment OF
the Secretary Of the Treasury are
necessary to maintain equal purchas-
ing power of every kind of currency of
the United States and that the reserve
for United States notes and for Treas
ury notes Of 1890 and the security for
gold certificates shall be maintained
IN gold bullion equal to the dolla.
amounts required by present law.
7. Establishing a method OF account
ing for the gain or loss in value of
Treasury gold occasioned by change
In the weight OF the gold dollar.
Clarifies Present Law.
8. Clarifies present laws which
authorize the purchase and sale of
gold by the Secretary Of the Treasury
g. Establishes a stabiiization fund
and appropriates 50 900 900 for the
purpose, but only out of the profits on
devaluation.
10. Limits the Presidents power to
fix the weight of the gold dollar to
weights between so and 60 per cent of
the present weight
Draining the gold from the Federal
Reserve Banks into the Treasury will
not prevent these banks from con-
tinuing to issue currency just as they
do now when it is needed.
For the gold that is turned over to
the Treasury the banks would receive
gold certificates. In sense they
might be regarded as warehouse GER
tificates. but actually they are not be-
storing the gold for the banks, since
the title to the metal will have
changed
With these gold certificates to use
as backing, however, officials said the
banks would be able to issue paper
money. The gold certificates would
provide 40 per cent of the backing
and commercial paper would make up
the balance, just as Is now the case
except that gold Is used instead OF
the certificates