Evening star., 1934-01-15

enlnG OF the national nnAnclaI Struc.
lures in times of emergency. He held
1t was not necessary to transfer gold
from one individual to another or from
the Government to an individual within
. nation. The transfer of gold in bulk
Is essential only for the payment Of
international trade balances.
Gold and silver, the President said
have been used either for money or a
. basis for forms Of money over a lone
period OF years. He said that govern
ment could issue mere tokens to serve
as money which would be accepted at
their face value III 1t were certain that
the amount Of these tokens were perma-
nently limited and confined to the total
amount necessary for the daily cash
needs Of the community" Because this
assurance could not always or sum-
GENTLY be given. he said. governments
have found that bases of gold and silver
behind their paper currency added stab
ility to their financial systems. This
part of the Presidents message was
interpreted as q clear indication he has
no intention of resorting to mere paper
money imitation.
With regard to silver, the President
expressed 'the hope that it may be
much more greatly employed as a basis
for currency. He said, however. IT am
withholding any Recommendation to
the Congress looking. to further extern
sion Of the monetary use Of silver, be-
cause I believe that we should gain
more knowledge of the results of the
London agreement and Of our other
monetary measures"
He called attention to the fact that
under the London agreement he had
already provided for the coinage of
newly mined silver in this country at
an increased price.
In conclusion the President stressed
the need that the national currency
should be maintained as sound cur
rency which. in SO far as possible. will
have a fairly constant standard OF pur-
chasing power and be adequate for the
lishment Of credit"
Exact Figure Left Open.
In q scene made the more dramatic
by a tight Tipped secrecy imposed upon
all present, Mr.. Roosevelt last night
spread his cards upon a White House
table before half hundred Senators
and Representatives.
Back and forth across the Presi-
dents upstairs study as the hour neared
midnight. according to the Associated
Z
to various levels for devaluating the
dollar. In the end the exact figure
was left open. A request for presi-
Dental authority to shift any original
figure set was indicated.
Senators and Representatives finally
emerged from the Executive Mansion.
many smiling, but all silent 1t was
disclosed the blanket of secrecy was
thrown in order to prevent European
markets from taking advantage OF a
five-l-ou or so time difference over
markets IN this country.
Statement by Early.
Some who sat with the President
hinted revaluation would be dictated
by commodity prices at the time it is
announced All the White House had
to say last night, however. was the
following brief statement read to re-
porters by Stephen T. Early. secre-
tary to the President:
THE President and the Secretary of
the Treasury conferred tonight with
Democratic and Republican members of
the Banking and Currency committees
of the Senate and House.
The subjects under discussion were
the methods of taking into the Treasury
the title and ownership Of all monetary
gold in the United States, and also the
general subject Of revaluation of the
gold content of the dollar.
THE President expects to send a
message to the Congress on these sub
jects tomorrow, Monday, January Is"
Getting Government title to all mon
etary gold meant chiefly impounding
the huge Federal Reserve Bank stocks
of $3,566, 600. .000-more than three
1F h. T-tt cd Sfafn
supply. Mr.. Roosevelt believes he has
ample powers to order. this gold into
the Treasury. He explained to the
Congressmen who met with him and
Secretary Morgenthau that the move
was essential so that the Government
and the Government alone would profit
from devaluation.