The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-01-23
R|VE.MEN|BER BOARD
TO HAVE CONTROL Of
STERILIZATION FUND.
Senate Committee Objects to
Putting Power in Secre.
tary Alone
VOTE II TO 8 ON MEASURE
Time Limit Of Two Years on
Sterilization Operations
u Affixed

Washington, Jan. 23.-F1-The adj
ministration money bill was speedily
approved Tuesday by the senate
banking committee after 1t had voted
several notifications, including .
provision making the proposed 81
10000 900 sterilization fund tenn
porary.
The important monetary legislation
was approved l5.2.
A time limit OF two years on the
operation Of the sterilization fund
was the most important modification.
Another amendment would place
the sterilization fund under board
Of five instead OF vesting complete
control In the secretary Of the treas
ury.
The administration was upheld In
. vote to leave title to the gold with
the federal reserve system and take
the profits from devaluation through
a franchise tax on the system.
Meanwhile. debate over the meas
ure broke out in the senate, With
Senaor Tess Of Ohio assailing It and
Senator Robinson Of Arkansas, the
Democratic leader, speaking In de-
tense.
Limit Devaluation
The committee also placed limit
alton Of two years on President Roo
sevelt's power to devalue the dollar.
Both time limitations were voted
with q proviso that the president
could terminate the powers In less
than two years or extend them for
one additional year.
BY close vote. the committee de-
cided the gigantic $4,000, 000.0 900 fund
should be managed by board COM
posed of the secretary Of the treasury,
the comptroller Of currency, the gov
ernor OF the federal reserve board
and two others appointed by the
president.
Earlier, the committee had rejected
an amendment by Senator McAdoo
(Dem., Calif.), . former secretary Of
the treasury. to leave title to gold
with the federal reserve system and
take the profits from devaluation
through franchise tax on the fed
eral reserve system.
The McAdoo proposal was recon.
mended to the committee by several
witnesses during the hearings on the
bill.
Democrats Break Away
Several Democrats broke away on
the l2-to-8 sterilization fund vote.
The sterilization fund motion was
made by Senator Glass (Dem., Va.
secretary Of the treasury In the VIII
son cabinet.
Members Of the committee said the
vote by which the committee ap-
proved transfer Of the title to fed
eral gold was II to 9.
Meanwhile the administr q 10 n
shaped an announcement Of the start
Of its $4,000, 900 900 refinancing prob
lem. Secretary Morgenthau made
clear after conference with federal
reserve board officials and the presi-
dent Monday night there was an
understanding upon the length. sire
and interest rate Of the new govern
ment ISSUE"
Promising to make known his plant
before nightfall, Morgenthau guarded
them closely beforehand. Observers
speculated that the first issue prob
ably would be for . billion or more.
since the treasury's cash on hand
now stands at about the halt bill
lion mark, but looked for the issue
to be In more or less routine form.
Tho most likely change In the com.
mittee on the money bill, members
said, was . time limitation on the
operations Of the proposed 42.000.-
nm mn SkaI,i1iza tiof, filnd