Evening star., 1934-01-30
ROOSEVELT TO SIGN
GOLD BILL TODAY
Move to Take Over Reserve
Board Supply to Follow
Immediately.
BY the Associated Pres


President Roosevelt will sign the dol
lar devaluation bill at $50 pm today,
and promptly move to take over the
Nations gold supply.
Until the mechanically difficult task
of taking over the more than $3,000,-
900 900 of gold held by the Federal Re-
serve system is completed. Mr.. Roose-
velt will reserve action on devaluating
the dollar permanently and establishing
the stabilization fund.
But he will move Immediately to put
the new monetary system into effect
He has asked Secretary Morgenthau
Gov. Black of the Federal Reserve
Board: George L. Harrison. governor
of the New York Federal Reserve Bank
ProfS. George F.. Warren and James
Harvey Rogers. monetary experts. and
Herman Oliphant, counsel to the Treas
ury, to meet with him immedia tely
after the signing of the bill
The first objective is getting the ma
tional gold supply into control of the
Treasury. 1t will be kept in bullion
form as a basis for currency issues.
Value to Be Fixed.
When this operation has been ar.
ranged the President will issue a proc
lamation fixing definitely the new value
Of the dollar in terms of gold. This
value will be between so and so De,
cent Of its previous gold content in ac-
cordance with the new law which was
requested by the President
Mr.. Roosevelt then will have a profit
in, nf mn 70
sulting from the deprecated price OF
the dollar He will use S2000,000, 600
of this for a stabilization fund to use
in steadying the dollar in foreign ex-
change and for other purposes.
The Secretary will have authority to
buy and sell gold in foreign exchange
and to buy Government bonds in the
domestic market
Just how soon devaluation will be
proclaimed was uncertain, but it was
believed at the White House it would
not be done today.
Mr. Roosevelt expects to receive the
measure from the Capitol early this
afternoon When the bill is signed,
Treasury experts figure the United
States will hold title to S40ll 900 900
of gold. Money for the stabilization
fund will be taken from the approxi-
mately S2666, coo 900 profit gained
from devaluing the gold dollar.
British Farley Near.
Morgenthau intimated strongly this
morning that currency stabilization dis
cussionS with Great Britain were not
far in the offlng. He shook his head
negatively when asked if the talk had
already started. smiled and added:
But if you ask me again next week,
won't answer"
BY that time, he indicated, con-
dition might arise where Il would
either have to lie to you or tip off the
Treasury's hand
The new Treasury chief already has
indicated he would use the stabilization
fund as blue chips" on the table sc
far as England and other nations are
concerned. Avoiding question as tt
the possibility of a currency war with
Great Britain his answer was:
What's fellow going to say when
he's all armed?"
The measure probably would have
become law yesterday, but a recess Of
the Senate made it impossible for Vice
President Garner to sign it before today
The Federal Reserve Bank of New
York is to act as the Treasury's agent
in the administration of the fund, just
as it has in past purchases of golc
abroad. Morgenthau said, and the State
Cal