Evening star., 1934-01-18
HARRISON TELLS
OF GOLD BENEFITS
Profit, Debt Reduction and
Favorable Trade Balance
Seen in Forum Talk. =

A reduction in the national debt,
favorable trade balances abroad and
the accumulation Of huge profit by
the Government were seen as direct
benefits of the Presidents new gold
policy by Senator Pat Harrison, chair
man Of the Senate Finance Committee.
The Mississippi Democrat gave his
views last night in an address in the
National Radio Forum, arranged by
The Washington Star and broadcast
over a coast-to-coast network OF the
National Broadcasting Company.
There never will be a time" Sen
ator Harrison said, when gold will not
be the major basis upon which this
Government will issue currency. We
may add to the base, but gold will
never be discarded as one OF the bases
Of currency"
Profit on Gold Estimated.
Senator Harrison asserted that the
Presidents gold bill will be enacted
into law promptly.
when the value of the American
dollar is stabilized, as in all probability
ment," the Senator continued. this
Government will obtain considerable
profit for the American people, as it
should obtain from the devaluation
process.
IF in the end the American dollar Is
stabilized at 60 cents, the Treasury of
the United States will be benefited IN
the amount of two and two-thirds
billions of dollars. If the stabilization
Is at so cents, the profit will be four
billions of dollars"
Exports Will Increase
Referring to the requested authority
to permit the President to revalue the
dollar. Senator Harrison said:
with that power granted to the
President, we can be assured that
favorable exchange balances will be
obtained; that our exports will con-
tinue to increase, and that American
interests will be protected abroad.
"Of course, in the end this large
accumulation Of profits, amounting to
several billions of dollars, will be en-
ployed in reducing the Nations in
debtedness"
Senator Harrison also cited general
improvement in business and an in
crease in revenues to the Government
already being accumulated.
"As an illustration of how business
is improving" he said, ''let me give
you the increases of a few of the i'm
portant excise taxes during the last
six months over the corresponding six
month period of last year.
Total Receipts Increase"
Estate tax receipts have increased
100 per cent Stock transfer tax re-
receipts have increased 43 per cent. Tax
receipts on automobiles, trucks and ac-
cessories have increased 184 per cent.
Tax receipts on toilet preparations have
increased 80 per cent and tax receipts
on tobacco products have increased
az per cent.
"Ihe total of internal revenue re-
ceipts, exclusive Of income and process
ing taxes, has increased from 1888,
600 900 for the corresponding six-month
period of last year to $742 100000 Tor
the last six months. This is an IN
crease Of 81 per cent.
IF you look forward to the fiscal year
1885, which begins July l this year, !
believe that Government revenues for
that period will exceed by $4,000, 900, ,OOC
the revenues for 1888"
Text of Address.
The text of Senator Harrison's speech
follows:
When I was invited to address you
tonight, I was enjoined to speak upon
the financial condition of the country
and likely tax legislation during this
session. However, the Presidents unex-
pected monetary pronouncement to the
CONGRESS on Monday invites me tonight
to deyiate for the moment from what
had expected to say and to discuss with
YOU briefly the Presidents gold policy
and the reaction of the Congress to 1t.
When President Roosevelt was in
Quoted into the White House on the
4th of March, last year, he was de-
termined upon inaugurating such poll
cies and adopting such plans as would
restore a more just equilibrium between
the purchasing value OF commodltles
and the value of the American dollar
It was obvious to him, as 1t was TO the
American people, that commodity and
land values had declined out OF proper
ton to the value Of the American dol
lar, and that unless and until q fair
ratio could be re-established, it would
be impossible to restore economic con-
tentment and stability to our people:
With that single object in view he
has suggested many legislative measures
for the relief Of the debtor, all OF which
have been enacted into law with bench
cent effect. The recent gold pronounce
nent of the President is but another
step toward the goal which he has
sought to reach. This Government will
always continue to fix its circulating
medium upon a metallic base. There
will never be time when gold will not
be the major basis upon which this
Government will issue currency. We
may add to the base, but gold will never
be discarded as one of the bases OF cur
rency. That being true, our Govern
ment Is In an enviable position, because
today we hold 00,00o,000 Of gold
and together with one other country
control more than go per cent Of the
gold supply Of the world. Through the
purchase Of gold in the world marke,
and the purchase Of newly-mined gold
within the country, we have been able
to devalue the American dollar to about
63 cents. The President has felt tna'
1t should go lower than that, and during
the recent session of Congress he was
given the power to reduce the gold con-
tent of the dollar to as low as SO per
cent.
The President believes. and rightfully