Evening star., 1934-01-28

Schan, steiwer, Townsend, Walcott,
White.
Paired For the bill-Thomas Of Ok
lahona, Bulow. Democrats; Norbeck,
Republican. Against the bill-Gore,
Democrat; Metcalf and Hastings, Re
publicans.
Provisions Of Measure.
Specifically the bill contains the fol-
lowing provisions, according to the As
sociated Press:
The Treasury is given title to all the
Nations monetary gold stocks, includ-
ing So 500 900 900 held by the Federal
Reserve banks.
The President is authorized to revalue
the dollar at so to 60 per cent Of its
present statutory gold equivalent.
Coinage of gold is declared at an
end. The metal is to be held in bullion
form in the Treasury as backing for
paper currency.
The 50 900 900 900 sterilization fund
is created out of the increased value OF
the gold accruing as result OF devalua-
ton Of the dollar. It Is placed In the
sole charge of the Secretary Of the
Treasury and he is given authority to
expend it in virtually any transactions
he may deem necessary for stabilizing
the dollar abroad.
In addition, the bill removes several
present restrictions upon the issuance
of Government securities provides that
any type of Government obligation may
be purchased with any other type, that
securities issues may be sold privately,
and authorizes the issuance Of $2,500,
600 900 additional Treasury notes.
Quick Action Expected.
Mr.. Roosevelt is expected to take
quick action to devalue the dollar and
set up the Sterilization Board. Since
the bill was sent to Congress, with his
monetary message a week ago Monday
the dollar has shown a strong tendency
to rise in terms OF foreign currencies,
thereby making it more difficult for
foreign buyers to purchase American
made goods.
Secretary Morgenthau has strongly
indicated during this movement that
he believed the fund should be put at
his disposal as soon as possible, so that
the adverse trend might be counteracted
by purchase of foreign exchange and
other transactions he Is authorized to
undertake with the fund.
Arguments for and against the measure
throughout the week OF committee hear
ings and the four days of Senate debate
were many.
Friends of the legislation argued that
devaluing the dollar would have the
result of a rise in commodity prices,
encouraging business to become more
active with a consequent reduction IN
unemployment.
They urged the necessity of establish
ing the sterilization fund and leaving
it in the control Of the Secretary OF the
Treasury alone, because OF quick dc.
cisions and absolute secrecy that would
be needed for its successful operation.
Debt Equalization Stressed.
They contended that by cutting the
gold value of the dollar. the debtor
would be enabled to pay his debts with
q currency of the same value that pre-
vailed when his debts were contracted
and that the creditor would be helped
by being enabled to collect.
The opponents asserted that the
measure held potentialities of disaster,
particularly with regard to the stabiliza-
ton fund. All expenditures from 1t,
they said, would automatically find their
way into the Federal Reserve member
bank reserves providing springboard
for a tremendous expansion Of credit
that would result in quick boom and
a disastrous collapse.
In addition, they asserted it was
dangerous to place the stabilization
fund In the control of one man, and
argued that the powers conferred would
enable the Secretary of the Treasury to
conduct = general banking business.