The midland journal. (Rising Sun, Md.) 1885-1947, 1934-02-09


these provided that
control of the $1,000
senator CLASS 100000 sterilization
fund should be given to a board
Of FIVE instead of to the secretary
of the treasury. This was defeat
ed by the votes of so Democrats,
three radical" Republicans and the
single Farmer Labor senator. The sec
ond amendment offered was put for
ward by the silver bloc and was
beaten only by the assistance of II
Republican senators, for % Demo-
Gratis were recorded in favor of it and
the vote stood 43 to 49, 1t would have
provided for the purchase and re-
monetization Of silver.
The final vote on the measure was
66 to %. One lone Democrat had the
nerve to stand out against the adj
ministration and uphold by his vote
his convictions, although several 9TH
ers had opposed the bill in debate.
The man who was true to himself was
Carter Glass of Virginia, secretary of
treasury w llSOu anu w NoSAiOA
of the federal reserve act. Senator
Gore of Oklahoma was paired against
the measure but did not vote. Sena-
tor McAdoo of California had done
lot of opposition talking but quit with
that and went into the faye" column.
All of the Independent Republicans
and Shipstead, Farmer-Laborite, sup
ported the bill.
Though the money bill has been
summarized before in this column, it
may be well to state again its main
provisions, as follows:
The treasury Is given title to all the
nations monetary gold stocks, includ-
ing S3,50O0O0,O00 held by the federal
reserve banks.
The President Is authorized to re
value the dollar at so to 60 per cent
of its present statutory gold equiva-
lent.
Coinage of gold is declared at an
end. The metal Is to be held in bull
lion form in the treasury as backing
for paper currency.
The S20OO,OOO,0OO sterilization fund
is created out of the increased value
of the gold accruing as result of de-
valuation of the dollar. 1t is placed
in the sole charge of the secretary of
the treasury and he is given author
ity to expend it in virtually any trans
actions he may deem necessary for
stabilizing the dollar abroad.
a CITING under the authority con-
ferred on him by the new money
law, President Roosevelt proceeded to
devalue the official dollar to 5000
cents by proclaiming reduction of
the dollars gold content from 25.S
grains nine-tenths fine to Is 5-21 grains
nine-tenths fine. At the same time the
President announced the government
would buy gold at price Of $35 an
ounce.
The change in the dollars gold con-
tent, the first to be made in century,
will not be Immediately appreciate to
the general public; but 1t is the ex-
pectation of the administration that
it will bring about general rise of
commodity prices and that this will
induce an Increased volume of bust
ness, which will enable producers to
make more money and therefore to
raise wages. Only time can tell
whether this theory Is correct or fall
lacious.
Shortly after the President signed
his proclamation, the treasury an
nounced that new form of currency
was being prepared by the bureau OF
engraving to take care Of the problems
created by transfer of title to all fed
eral reserve bank gold to the treasury.
Gold certificates, the same size as cur
rency now in circulation, will be used.
Instead of the absolute promise to pay
In gold carried by gold certificates pre-
viously issued, however, these will
say:
"This is to certify that there is on
deposit in the treasury of the United
States of America (blank) dollars in
gold, payable to the bearer on demand
as authorized by law"
DRESIDENT ROOSEvELT'S admin
istration has proposed to congress
legislation that would bring the stock
and commodity exchanges of the coun-
try under the rigid control Of the fed
eral government. The Presidents In
terdepartmental committee has made
suggestions for the federal licensing
of those markets and the creation Of
governmental agency with extraordi-
nary powers to regulate their opera
lions. The banking and currency com
mittees of the senate and house have
these recommendation under consider
alton as basis for legislation soon to
be introduced.
The interstate commerce committee
III the house Is working on legislation,
also proposed By the interdepartment