Imperial Valley press., 1934-01-15
RETALIATION
PROBLEM Up
To CONGRESS
President Asks Authority To
Set Rate Not To Exceed 60
Per Cent OF Present Value.
TO SEIZE RESERVE GOLD
Government Title To All Mon
etary Gold Advocated In Mes
sage By Roosevelt.
TO SEIZE RESERVE GOLD
BY LYLE c. WILSON
United Press Staff Correspondent


WASHINGTON, Jan. Is. - Pres
ident Roosevelt today asked con-
gress for legislation to give the
government permanent and undis-
puted possession of all the country's
$4,000, 100000 gold resources, includ-
ing the $3,566, 100000 held by the
federal reserve banks.
The President also asked congress
to make mandatory revaluation of
the dollar at not more than go per
cent of its present gold value.
Present law empowers the President
to devalue the dollar down to SO
per cent.
Careful study leads me to be-
lieve that any evaluation at more
than so per cent would not be in
the public interest," Mr.. Roosevelt
said.
He asked that the government s
profits from devaluation be used to
set up $2,OOO,O00,O0O stabilization
fund.
The treasury would be expressly
empowered to use this fund in for
eign exchange transactions, as we'll
as to deal in gold and securities in
order to stabilize the credit of the
government and regulate the value
of money.
"With the legislation to make
this ownership clear, we can organ
ize currency system which will be
both sound and adequate" the
President said.
Gold Circulation Undesirable
The President said this action
was needed sin conformity with
the progress we are making in re-
storing a fairer price level and with
our purpose of arriving eventually
at less variable purchasing power
for the dollar"
The President said experience had
shown that free circulation of gold
coins was unnecessary and that in
stead all gold should be held in the
form of bullion.
Circulation of coins, he said,
leads to boarding and tends to a
possible weakening of national fin
ancial structures in times of emer-
gency.'
"The practice of transferring
gold from one individual to another
or from the government to an in
dividual within a nation is not only
unnecessary, but is in every way un-
desirable,' the President contin-
ued.
"The transfer of gold in bulk is
essential only for the payment of
international trade balances
Therefore it is prudent step to
vest in the government of nation
the title to and possession of all
monetary gold within its boundar-
les and to keep that gold in the
form of bullion rather than in
conn.,
The President expressed hope
that "events are leading to some
future form of general agreement
among the nations on monetary
policy. At the present time, how
ever, there is still much confusion
and much divergence of views as to
whether gold alone, silver, or both
should be used as the basis of cur
rency.
SShS SOIS ICSS
Mr.. Roosevelt said he already had
authority to take title to the gold
held by the reserve banks. but 'this
is step of such Importance that l
prefer to ask the congress by spe-
cific enactment to vest in the Unit
ed States government title to all
supplies of American owned none
tary gold, with provision for the
payment therefor in gold certifi-
cates.''
This would make clear the gov
ernment IS right to the profit on all
gold in event of devaluation-a pro-
fit which would amount to $4,000
100000 if the present legal gold con-
tent of the dollar were reduced so
per cent.
Turning to silver, the President
said he looked for greatly increased
use of silver as a monetary base.
He added, however, that he was
withholding recommendations TO
congress along this line "because l
believe that we should gain more
knowledge of the results of the
London agreement and of our other
monetary measures.
He pointed out that in Decem-
ber, in accordance with the silver
agreement reached at the London
conference. he had provided for
coinage of this country's newly
mined silver and for increasing re-
serves of monetary silver.