Evening star., 1934-01-12


submitted an opinion to President
Roosevelt on the question of whether
the Government can lmpound the
gold of the Federal Reserve System
without legislation.
Attorney General Cummings de-
clined to disclose the nature of his
opinion on Federal Reserve gold.
The fact, however, that an opin-
ion was before the President was
regarded generally as showing he
has this move in mind.
Bg the Associated Press.
A possibility that some hint concern
ing new Federal monetary moves might
come from the White House before
sundown today stirred speculation that
a naturalization of all monetary gold
might be in the offing.
President Roosevelt will talk with
newspaper men at his regular press
conference during the late afternoon.
AS to whether some positive or negative
sign would be given at that time, how
ever, he himself gave no intimation be-
forehand.
peared likely in the near future. After
a White House conference, joined by
Secretary Morgenthau, Gov. Eugene
Black of the Federal Reserve Board
and Attorney General Cummings yes
terday, it was disclosed authoritatively
that Mr.. Roosevelt had at least given
consideration to gold naturalization.
Revaluation Not Hinted.
There was no authoritative indica-
ton, however that even a commander
ing of the Federal Reserve Systems
vast gold stocks would if accomplished,
be accompanied by immediate revalua-
ton of the gold dollar.
Prof. o. NJ. w. Sprague, resigned
Treasury adviser on monetary matters,
and Rev. Charles E. Coughlin, Detroit,
Detroit priest who has supported ad-
ministration in radio speeches, mean
while agreed to testify before the House
Coinage Committee as to money ques-
tionS.
They have radically opposing ideas
and their appearance-as we'll as testi-
mony by others well known in discus
sion of money questions-is being
awaited here in the light of expecta-
tion of White House Developments
The Reconstruction Finance Corpora
tion offer for newly-mined domestic
gold meanwhile was maintained at
S34.06 an ounce for the nineteenth time.
The dollar continued strong abroad
as sterling opened in London at S5.0812
to the pound At this level, bar gold
was worth $3233 an ounce.
Reserve Total Compiled.
Ten-digit figures. Just compiled by
the Treasury and Federal Reserve
Board, presented fresh evidence of the
vital importance of Reserve Bank gold
in any new steps in the Presidents
managed currency program.
The Treasury reported that the
Nations monetary gold stocks at the
S4.322,865.873. The Reserve Board
counted gold reserves of its IL banks at
S3,566, ,290 ,o0o-more than three-quar-
ters of the total.
Most of the gold-s3 ,201 TAO, ,958-
actually was held in the Treasury. But
S1,767,949,566 of this was held for the
Reserve banks, while the banks them
selves had S810,154,273 in gold and
S946, ,133, 100 in gold certificates.
Just how to transfer title to the
Reserve Bank gold from the banks to
the Government apparently still was at
issue. At least one high Treasusy Off
cial believed, however, that such a
transfer designed to give the Govern
ment and not the banks any profit
arising from devaluation, was an essen
tial prerequisite to any reducing Of the
dollars gold content.
Right of Call Defended.
Treasury legal advisers contend the
emergency banking act authorizes the
Secretary of the Treasury to call in
Reserve gold just as he has that OF
individuals. They point to a clause
saying gold may be called in if owned
by "individuals, partnership, associa-
tions and corporations"
In support of this position, these Off
cials say the reserve banks are cor
porations within the meaning of the
law and emphasize that this power
was given the Secretary in an amend
ment to the Federal reserve act itself.
Their contentious, however, are by
no means shared by the Reserve Board.
This group has given the question long
study and one member said today no
conclusion had been reached. Instead,
he indicated, legislation was a more
likely means of shifting the gold sup
ply, leaving in Mr.. Roosevelt's hands
the power to devalue when ne saw mt.
Cummings Aid Sought.
There was reason to believe Attorney
General Cummings aid has been
sought in solving legal aspects OF the
recapture of all gold.
Morgenthau already has ordered paid
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