The Waterbury Democrat., 1934-01-13
C.OfC. Heads Expect
 Industry. To Expand
Conn Executives Urge Government Expenditures
 Be Gradually Reduced at Hartford Meeting

Hartford, Jan 13-The Connecti- cut Chamber of Commerce by a vote of. it's directors at their meet ing held in Hartford yesterday. unanimously adopted the following pronouncement:
 "The Connecticut Chamber of Commerce presents the following statement of the composite views of its members, determined from their response to a referendum seeking their opinions and convic- tions on the present currency situ- ation, and especially on the several bases for sound money which are new arousing nationwide discus- sion and controversy.
 "The membership of this cham Der is a fair cross-section of the representative business element Of Connecticut. The views expressed accordingly may be accepted az as those generally held by the lead CTS of industry and finance in this state. They are offered for the in formation of the President and oul representatives in congress tha' they may know the attitude of large body of their constituents or measures OH WHiCu tHoJ Hhoy 1' called to legislate.
 "The members of the Connecti. cut Chamber recognize that thu banking crisis of last March made necessary extraordinary steps tc protect the financial structure of the country from the effect of q serious financial panic which con- ditions then threatened. They be. lieve that the prohibition against hoarding of gold and of gold notes the withdrawal of gold from circu- lation, and the restrictions imposed on tis export, were wise and intel ligent expedients, courageously taken to meet a great emergency They appreciate that the intended effect of some of these measures was to devalue the dollar and that it's depreciation, especially in terms of foreign currencies. has infiu- enced in some degree an improve. ment In foreign trade and tempo. rarily, at least, has stimulated 8 rise in domestic prices of goods and commodities.
 While they thus endorse and have supported these measures they are fearful that their tempo. rary success as expedients in meet ing an emergency will tend to in- fiuence Q demand that they be con- tinued and extended as a perma. nent monetary policy. In particular they are most apprehensive of the deliberate effort of the government to further devalue the dollar by its recently adopted gold purchasing program. It's purpose may not bt fully comprehended. It is hoped however. that 1t is but an expert ment to test a monetary theory be- cause they arc convinced that its immediate effect is to create such uncertainty of the future value oi money as to seriously impede the improvement in business recovery which is so greatly needed.
 "The members are convinced that industry will expand, credit be freely extended. and capital be seeking investment only when those who have responsibility for the direction of business and o1 finance feel confidence in the cur. rency with which they will be re- paid for their commitments, and that this confidence can be created substantially by re-establishing the currency on a sound money basis.
 Sound money is a term now so frequently applied to a number of monetary systems based on new economic theories, that the mem hers of the state chamber feel they should define what they mean by that term: It Is a currency based on gold and supported by a govern ment whose credit Is made impreg- nable by 0 fully balanced budget. Tn order that the financial and monetary structure of our country bo early placed on such a sound foundation. our members urge that