Evening star., 1934-01-20
Democratic Leaders of
House Press on After
Plea for Speed.
SENATORS ARE WARNED
OF "CURRENCY WAR"
Roosevelt Stands Firm on Demand
for Secrecy in Operating Sta
bilization Fund.
By the Associated Press.

By the Associated Press.
Responding to the administration call
for quick passage of the Roosevelt
dollar devaluation bill, Democratic
leaders exerted strong pressure today
to bring vote in the House before
adjournment.
Whether the measure would be sent
on to the Senate tonight, or be deferred
until next week, produced a difference
Of opinion among House leaders Speaker
Rainey doubted whether it could bs
done, while Representative Byrns, the
Democratic leader, thought it could.
Meanwhile, the Senate Banking Com
mittee received testimony on the legis-
lation, which leaders in that branch
hoped would be passed early next week.
A Republican cry of star chamber
proceedings rang out when Chairman
Fletcher sought to limit the hearings"
The first witness was G. P. Preston,
Chattanooga, Tenn, banker and a
spokesman for the Chamber of Com
merce of the United States.
He recommended that once the gold
content Of the dollar has been fixed, IL
should remain at that point and all
the maintenance of all forms of the
currency on parity with such standard
dollar"
Opposes Gold Surrender.
He further recommended that gold
be given in redemption Of currency
when necessary to maintain such parity
of currency with the gold standard dol
lar
Preston opposed surrender Of the Fed
eral Reserve gold to the Government,
saying it presents the possibility Of
weakening the Federal Reserve System
and impairing its utility"
Byrns said that he expected most
Republicans to vote for it. including
Mr.. Smell" of New York. The Republic
an leader although he understood they
would propose a number Of amend
ments
The House began consideration Of a
rule making the legislation in order
for immediate consideration. One hour
of debate on the rule was allowed.
Three-Year Limit Opposed.
As the bill began its voyage through
the House, Chairman Somers of the
Coinage Committee denied that Presi-
dent Roosevelt is willing now to accept
a definite three-year limit on the pro-
posed $4,000, 100000 exchange stabiliza-
ton fund.
The President doesn't want the life
Of the fund limited to any period"
Somers told newspaper men. He called
at the White House yesterday.
Somers added that an amendment
accepted by the President requiring
a general report to Congress in three
years would give Congress chance to
end the operation of the S2,oo0,o0o,-
900 fund.
1t would. however require a two.
thirds majority. if the Chief Executive
thought the fund should be continued,
because he could veto any bill passed.
Then Congress would have to repass
it over the veto.
The Coinage Committee. in executive
session this morning. heard John jan
ney. president of the American Society
Of Practical Economists, oppose the de-
valuation plan.
He suggested the use of silver pur-
chased by the Government would apply
natural" rather than artificial lew
erage on the American dollar and gold.
Predicts Currency War.
Again he told the committee that
creation of a s2000,O00,OOO stabiliza-
ton fund likely would bring a cur
rency war between the United States
and Great Britain. with the latter
using her 81 100000 900 equalization
fund
Treasury officials, meanwhile. said
no financing plans would be announced
today, definitely postponing over the
week end start on the huge borrow
ing program neceSsitated by recovery
costs.
The Federal Reserve Board and Re-
serve Board governors gathered in a
special meeting. the first since their
secret discussion just before Christ
mas when they determined to recon-
mend legislative action for govern
mental Seizing OF Reserve bank gold
as opposed to an executive capture Of
the ,stockS.
1t was believed likely that the bank
governors were considering policies to
be pursued during the forthcoming pc
riod Of heavy Government borrowing.
For many weeks the Reserve System
has stopped purchasing Government
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