The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1934-02-01
President Roosevelt
Will Devalue Dollar
United States Takes Absolute Title
to All Monetary Goodwin
Make Profit

Washington, Jan. 31-Armed at
last with the power he sought,
President Roosevelt left Congress
today to the simmering appropria-
tions and st. Lawrence treaty dis
putes while he set about to devalue
the dollar formally.
His Monetary lieutenants were
beckoned into a conference consid-
cred important enough to defer the
usual Wednesday morning meeting
with the press until later in the
day.
Capitol hill anticipated nothing
out of the ordinary, a dollar of at
least 40 per cent less than the pres
ent gold content being now accept
ed as a matter of course.
Title rested in the government to-
day to $4,029, 100000 of monetary
gold, by latest treasury figures.
Should the President decree a 80
per cent revaluation-ths indicated
Ifigure-the United States automat-
ically will profit by $2,686, 000, 900.
Almost Immediately after his
proclamation, Mr.. Roosevelt is ex-
pected to issue an executive order
creating a two billion dollar stabi-
lization fund out of these profits.
It will be welded by himself and
Secretary Henry Morgenthau, Jr.-
who has declared himself ready
to preserve the price of the dollar
at the desired figure in foreign ex-
change and to maintain the price
of government securities.
The operations will remain secret
but two main channels are open.
BY buying and selling gold, foreign
exchange and other instruments Of
credit, economic theory holds that
the dollar abroad could be raised
or lowered.
BY buying government bonds the
sterilization fund could be used as
a weapon for keeping state quo
tations on federal securities during
coming months when the treasury
will borrow. nine billion dollars.
+ The President today was assured
that the nations most powerful
financial factors-the treasury and
federal reserve system-would work
as a unit in his managed currency
plans.
These pledges were given him
yesterday by his financial advisors
at conference preceding the sign
ing of the dollar revaluation bill.
All doubts of full federal reserve
bank cooperation prompted by
their opposition to government cap
ture of their $500, 100000 in gold
were removed when an authorita-
tive spokesman said after that
meeting:
1--WE asked for legislation and got
it. Now we'll play the game"
Although today's prospective ac-
ton is seen as the greatest actual
step thus far taken in the Ameri-
can experiment of a managed cur
aimed mainly at increasing
commodity prices - the citizenry
probably will feel no immediate eff
feet.
That is, the dollar will still be ex-
|changeable for 100 pennies and a
$40 bill can still be handed in for
ten $1.00 bills.
While watching the effect on
prices and business and other ac-
tivity in this country, skilled OBJ
servers with London-which has an
equally large equalization fund -
will be the next logical action.
These same officials, however, do
not believe Great Britain is ready
to devalue the pound and will not
forecast the outcome of such ne
gotiations.
Scheduled to attend today's
White House money conference are
Morgenthau, Governor Eugene
Black, of the reserve board, Gov
ernor George L. Harrison, of the
New York Reserve Bank and Pro-
fessors George +. Warren and
James Harvey Rogers, of Yale
All these were present yesterday
when President Roosevelt signed
the bill and termed 1t his INCEST
birthday present"