The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-01-15
DECLARES AIM IS
INCREASE PRICE
LEVEL N AMERICA
Says Additional Legislation
Needed to Improve Pres.
ent Financial Set.up
NEED METALLIC RESERVES
Resists Effort to Initiate BY
Speeding Up Government
Printing Presses.

Washington. Jan. l5.-(R-The text
Of President Roosevelt's monetary
message to congress follows:
TO the congress:
In conformity with the progress
We are making in restoring . fairer
price level and with our purpose Of
,yrtving eventually ut q less variable
Y chasing power for the dollar, I
4 ne congress for certain addition
q legislation to improve our finan-
cial ana monetary system.
by making clear that we are es-
tabltshing permanent metallic re-
serves In the possession and owner
ship Of the federal government, we
can organize currency system which
Will be both sound and adequate.
THE issuance and control Of the
medium Of exchange which we call
money Is = high prerogative OF gov
eminent.
1T has been such for many centur-
les.
Because they were scarce, because
they could readily be subdivided and
transported, gold and silver have been
used for money or as basis for forms
Of money which in themselves had
only nominal intrinsic value.
Could Issue More sToken4
an pure theory, Of course. . gov
eminent could issue more tokens to
serve Is money-tokens which would
be accepted at their face value-if It
were certain that the amount Of these
tokens were permanently limited and
confined to the total amount neces-
sary for the daily cash needs Of the
community.
Because this assurance could not
always or sufficiently be given, gov
ernments have found that reserves or
bases OF gold and silver behind their
paper or token currency added stabil-
ity to their financial systems.
There Is still much confusion Of
thought which prevents worldwide
agreement creating uniform mone-
tary policy.
sMany advocate gold as the sole
basis Of currency; others advocate
silver: still others advocate both gold
and silver whether Is separate bases.
Or on . basis with Z fixed ratio. or
on q fused basis. q
1--WE hope that, despite present
world confusion, events are leading to
scme future form Of general agree
ment. The recent London agreement
IN regard to silver was step, though
only . step, In this direction.
Hopes for World Solution
AT this time We can usefully take
q further step, which we hope viii
contribute to an ultimate worldwide
solution.
.Certain lessons seem clear. For
example, the free circulation Of gold
coin Is unnecessary. leads to hoard
ing ana tends to . possible weaken
Ing Of national financial structures In
times Of emergency. The practice Of
transferring gold from one individual
10 another or from the government to
an individual within . nation Is not
only unnecessary but Is In every way
undesirable. The transfer Of gold In
bulk Is essential only for the payment
Of international trade balances.
Therefore Il q q prudent step to
vest In the government Of . nation
the title to and possession Of al
monetary gold within its boundaries
and to keep that gold In the form OF
bullion rather than In coin.
Because the safe-keeping Of this
monetary basis rests with the govern
ment. we have already called In the
nold which was In the possession Of
Lrivate individuals o. corporations.
There remains, however. very large
weight In gold bullion and coins which
Is still In the possession or control
Of the federal reserve banks.
Wants Congress Approval
although under existing law there
Is authority, BY executive act, to take
title to the gold In the possession or
Cvutr0 Of the reserve hanks, this Is
step Of such Importance that ! prefer
10 ask the congress BY specific enact
ment to vest IN the United States gov
eminent title to al supplies Of Amer
ican-owned monetary gold. with pro-
vision for the payment therefor In
gold certificates. These gold certi-
ficateg win Be, g now. secured ct Ill
times, dollar for dollar. by gold In the
treaSry-gQld for each dollar q such
weight and 1ineuess 6 may b estab-
Nshed from time TO time.
"euch Liquidation places the right.
title and Ownership to our gold re-
serves IN tho government itself: It
makes clear tho governments owner
ship Of any added dollar value Of the