The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-03-01
ROOsevelt'S Monetary
Policy Is Experiment,
Morgenthau Declares
Treasury Chief Says Nine
Months Needed to Make
Permanent Program.
By United Press

BIZ nited Press
WASHINGTON, March Treas
ury Secretary Henry Morgenthau
Jr. told house committee today
that the administration present
monetary policy is distinctively an
experiment and that it will be at
least nine months before a more
permanent policy can be evolved.
Il hope congress will give us at
least nine months or year so we
may find out a little more about the
situation" said Mr. Morgenthau
He appeared before banking and
currency subcommittee considering
the Goldsborough bill to establish a
federal monetary authority
AS far as am concerned, we are
on day-to-day basis" said the
treasury head. AS far as I know,
no man can tell us where we will
be six months from now or a year
from now. Whether we are going
to continue to be successful, I Cab
say only 1 hope so, but no one
knows. We have been on the new
monetary plan only two months"
Mr.. Morgenthau asserted the gold
program appears to be working
pretty we'll"
Policy Proves Successful
1--WE have, however, got to keep
our mind absolutely open and meet
things as they come he continued.
LAS long as it is working well, we'd
like to try little longer and give
it a chance"
He handed committee members a
chart which he said showed that
since February, 1888. the world price
of gold had gone up SO per cent
and farm commodities 81 per cent.
Both appear to be going along
pretty we'll together" said Secretary
Morgenthau.
He indicated he was far from
firmly welded to Professor George
Warren'S gold price lifting program.
I'm not saying if prices take a
nose dive 1 won't be up here tomor-
row pleading for a change" Mr..
Morgenthau said with a smile. He
urged that the monetary authority
bill, which would take away from the
federal reserve system its currency
issuing powers, be side tracked,
along with other monetary legisla-
ton, until the gold policy has been
given a trial. and the administration
has been given at least until next
January to try its own hand with
out interference.
Future Still Mystery
"The study the committee is max
ing is worthwhile and important, B"
he said. THE country just has
come through one of the most diff
cult banking crises it ever had and
we are beginning to see the day
light. I doubt if any one is suff1-
GENTLY wise to tell what the future
monetary policy of the country will
be because we haven't had enough
experience.
I'm few weeks we have changed
the gold price to $35 an ounce, and
have had use of a $2,000,O00O0
fund to stabilize the currency. But
it is impossible to tell what the flu
ture will be and how to handle it."
In answer to questions by Repre-
sentative jeff Busby Dem, Miss ;,
as to whether he felt the govern
ment was meeting its monetary re-
sponsibilities, Mr.. Morgenthau said
Other aces" Hinted
For the first time in years, the
administration is setting the pace
and determining the monetary
policy of the nation"
Pointing to the gold-commodity
chart, Mr. Morgenthau said the
present program, seems to be
working - farm commodities and
gold have gone forward together"
Although indicating there might
be other cards up the sleeve" in
the maneuvers to raise commodity
prices. Secretary Morgenthau said
that he didn't see how anybody
could do more to improve domestic
prices than we have so far"
He declined to answer a question
put by Representative Jesse P. VOL
colt Rep, Mich) as to. whether
gold would be further devalued if
prices drop measurably.