The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-17
CHECK SOUGHT
ON POWERS OF
GOLDPROGRAM
Congress Would Curb Wide
Jurisdiction of Treasury
Head.

BIZ CHtTfu PffSS
WASHINGTON, Jan. ia move
was started in congress today TO
place check upon the sweeping
powers that would be given the
treasury secretary under the $4,000
OOO,0 900 sterilization fund proposals
of the new Roosevelt gold program.
1t was learned that support was
gathering to a proposal advanced
within the senate banking and cur
rency committee that the secretary
be made accountable to congress for
his sterilization operations.
The bill, as considered by the
committee yesterday, states that the
secretary's decisions shall be final
and not subject to review by any
other officer of the United States.
The faction desiring a change Will
strive to have this amended to read,
not subject to review by an admin
istrative officer, thereby leaving the
way open for a review by the legiS-
lative branch of the government.
Exchange Sterilization Sought
Under the gold reserve act the
So 900 900 900 sterilization fund
would be used for the purchase, sale
or negotiation of all types OF securl-
ties. both domestic and foreign. The
object of such operations would be
to stabilize the exchange value OF
the dollar.
These sterilization operations are
counted upon to benefit the United
States in international trade. The
proposed fluctuation of the dollar
devaluation between so and 60 per
cent will narrow the field of Stablll-
cation but will not fix it exactly at
any given point.
The senate committee was told
Yesterday that exact Sterilization Is
not wanted by President Roosevelt
at present because it wolld enable
other countries to fix their curren-
cies to gain a trade advantage. They
will not be able to do this II the
President has his ten-point leeWay,
a range which is not wide enough
for violent fuctuation but still is
ample for bargaining purposes.
Question Bill COnstitutiOnality
At the committee meeting Sena-
tors Carter Glass Dem, Va; Will
liam CT. McAdoo Dem, Cal) and
Thomas Gore Dem, Okla0 raised
the issue of constitutionality of the
Presidents gold plan. 1t was re-
vealed that Acknowledgement Ho-
mer S. Cummings has not presented
written opinion on this subject,
the supposition being that he as
sured Mr.. Roosevelt verbally that
he believed the plan to be sound
legally.
At Senator McAdoo's inSistence
the committee called on Mr.. Cum
mings for a written opinion on the
legality of various phases of the
bill.
Hearings on the bill were arranged
to begin today. They will continue
several days. Among witnesses ex-
pected to appear are Adolph G.
Miller. former chairman of the fed
HTal reserve DOdIQ dI1l OIlC VI ITO
oldest members, Eugene R. Black,
present federal reserve governor;
Walter wyatt, the boards general
counsel, and James Harvey Rogers,
Yale professor.
Farm Leaders IndOrse Plan
The hearings are to be in secret.
Chairman Duncan U. Fletcher said
none of the members wanted public
hearings.
Action on the gold bill in the
house was delayed by a squabole
over Jurisdiction. Speaker Henry t.
Ralney decided that it should be
handled by the coinage committee,
but the banking and currency COM
nittee was expected to insist on a
vote in the house before surrender
ing its claim to the bill.
Governor Black and farm leaders
indorsed the Roosevelt gold plan.
Mr.. Black said that the federal re-
serve board, instead of opposing the
naturalization of gold, actually had
proposed it.