Evening star., 1934-01-16
u. s. REF|NANC|NG
PLANS UNCHANGED
Morgenthau Declares Gold
Proposal Has Not Affected
III Arrangements. -,
By the Associated Press,

By the Associated Press.
Arrangements for the huge refinanc-
ing operations Of the next five and one
half months are as yet unchanged,
despite plans for communicating the
country's supply Of monetary gold and
devaluing the dollar, according to Sec
retary of the Treasury Morgenthau.
He figures the Treasurys profit on
gold from devalution at $2,666, 900, 900
of which $2,000,0O0,0 900 will be set aside
as the stabilizaaion fund mentioned by
the President in his message to Con-
intact. An earlier estimate at the
White House had placed the profit at
So, SOC, 10000 This will leave a margin
of $666 600, 900, which is to be paid into
the Treasury's general fund. Whether
currency will be issued against this the
secretary could not say, although at
the White House 1t had been said
earlier that none Of the gold profit
would be used as currency backing.
The legislation requested by the
President would authorize expenditures
from the equalization fund for pur-
chases of Government securities. Even
though this were done only COM
paratively small slice would be cut off
row before June 80 to pay off matur-
ing securities and finance the recOy-
cry program.
To Use Several Devices.
Several ingenious devices are to be
| used until the new legislation has been
enacted Under a change in regula-
tions the Federal Reserve Bank of
New York today becomes the Treas
ury's agent in purchases of gold, with
quotation on the metal when newly
mined domestically raised from s34-O6
| to s3445.
Under present law. the Treasury can
| buy geld coin from the reserve banks,
but not bullion. So the metal will be
| minted before the Treasury acquires
| it. 1t will pay for the ccins in gold
certificates of new type, which the
Government guarantees to keep up to
, par in dollar value.
Morgenthau said the proposed two
billion-dolla fund to be employed III
dealing in gold and foreign exchange
may never be used"
Its existence may prove sufficient" ="
the Secretary said. but left the i'm
preston he expected the fund would
be employed.
Managed Currency"
He said the Treasury would continue
| to use the New York Reserve Bank as
| its agent in conducting such opera
| tions.
Morgenthau said he considered the
| Roosevelt plan signifled a managed cur
| rency rather than what is termed a
| commodity dollar"
Morgenthau said that since his order
Of December 28 calling in all monetary
! gold. except that held by Reserve banks
and the Reconstruction Corporation, the
Treasury on January II had received
| S6.788,820. He said the plan was for
the Treasury to take over gold bought
| by the Reconstruction Corporation at
the present mint price of s20.67. The
corporation will take the loss, since its
purchases have been at prices ranging
| from S3l SO to S3406 an ounce
Morgenthau said last weeks purchases
of silver under the recently announced
coinage plan was SAT ounces, as COM
| pared with the first weeks purchase
| 1,157 ounces. The Treasury's purchases
| of Government bonds last were given
| by Morgenthau at S33, 1868 000
He said the new Treasury gold price
Of s3445 was equivalent to a 60 per
| cent devaluation of the present gold
dollar.