The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-15

4 NAoSA v ~ hCSNAAAAOs
He asked, further, author
ity for the secretary of the
treasury to deal in foreign ex-
change and suggested that
$2,0OO,00O,O0O from the po-
tential profit in gold seizure
be utilized to establish a fund
for purchases and sales of
gold, foreign exchange and
government securities.
In addition, he asked for amend
ment Of existing legislation relat-
ing to purchase and sale of gold
and monetary matters in general
to make the handling of those
problems more convenient. Mr..
Roosevelt told questioners he re-
garded the RFC gold purchase sys-
tenn, for instance, as clumsy.
The latter part of his message
was devoted to silver, but said in
effect the government would wait
for developments under the Lon
don conference silver agreement
before acting further in connection
with that metal.
President Roosevelt feels that
some evidently mostly
bankers or brokerS-have under
taken bear raids on government
securities.
Discussed With Press
This does not apply to the great
majority of bankers. But the PreSi-
dent feels that there were indi-
viduals who recommended to their
clients that they sell their govern
ment bonds and that those recon-
mendations were made in most in
stances with Interior motives.
1t is felt, also, that some dis
senters from administration policies
in general may have dumped gov
eminent securities under such cir
cumstances.
Mr.. Roosevelt discussed his mes
sage at small press conference an
hour before it was sent to congress.
The President feels that in general
his communication is an argument
against starting the money printing
presses on greenbacks, but that there
is a dispute as to what a greenback
actually is.
1t is felt that a limited amount
of non-interest bearing SIS or $40
bonds" such as was proposed in
last sessions Thomas initiation bill
would not be greenbacks because
the issue would be limited and re-
tirement is provided in the act.
Leaves President Free
1t was pointed out at the White
House that the request that con-
gress fix the upper limit of revalua-
ton at 60 per cent" does not stabil-
ize the dollar at go cents but leaves
Mr.. Roosevelt free to stabilize be-
tween so and so cents, the lower
limit having been fixed last session
in the Thomas bill.
Emphasis was placed on the point
that today's message is not a 40 per
cent devaluation of the dollar. 1t
actually is a further limitation on
the Presidents power, but does not
require him to do anything i'm
mediately or in the future inasmuch
as it would be pernissive.
But when revaluation does take
place, Mr.. Roosevelt will have a 10
cent leeway between so and so cents
to find the place for the dollar.
There has been some newspaper
regarding the possibility
Of more than one retaliation order
under the Thomas bill, that is
whether the dollar could be fixed
at one place and later be altered
within the so per cent permissive
authority now existing. Mr.. Roose-
velt feels that he has authority to
revalue as often as he may desire
within the limits fixed by congress. /
Easier for Business
The President feels the program
which he expounded further today
will affect the average, fixed-income /
individual very little. But limita-
ion of the devaluing power to 10 |
per cent as proposed by the message |
S expected to relieve certain anxi- |
ETY. in the country, and especially, |
% make it easier for business to en-
.er into contracts.
A general Interpretation placed
~ observers on the message is that
I is intended to reassure the ma
ion on the eve of the unprecedent-