Imperial Valley press., 1934-01-22
GOLD PROGRAM
DEFENDED BY
PROF. WARREN
Roosevelt's Monetary Advisor
Testifies Before Senate Com
mittee On Banking.
PRECEDENTS PRESENTED
Professor Sees No Wild In
flation' Unless Revolution
Breaks Out.
BY II. o. THOMPSON

Dy ~.
United Press Staff Correspondent
WASHINGTON, Jan. %. UP
Historical precedents indicate that
the United States will not embark
ON any "wild initiation" unless a
uyiolent revolution occurs. DR..
George F.. Warren, monetary advisor
to President Roosevelt, said in test
imony today before the senate
banking and currency committee.
Warren, conservative and modest
in appearance despite the attention
centered on him as one of Presi-
dent Roosevelt's leading monetary
advisers, said he approved the
Roosevelt dollar devaluation bill
now being studied by the commit
tee.
Warren, defending his theory
against criticism in the press and
elsewhere, went to history to sup
port his views.
"From 1915 to 1929 there was no
demand for gold,' he said. "a
large part of the world had demon
etized gold. Gold was cheap. The
price level was so per cent above
pre-war prices. Those who are
challenging my gold statements
said then the price level would stay
up. They are equally fallacious now.
At that time when the world at
tempted a return to gold collapse
followed
The historical references, which
went even farther back and brought
discussion of the 18th century,
prompted Senator Walcott (RepD
Connecticut, to inquire:
1.-The French revolution and its
guillotining followed issuance of too
much paper money. Do you think
we might be drawn into period of
extreme initiation through this pol
icy?"
Occasions of extreme initiation
have been preceded by government
bankruptcy and revolution or war, -
Warren replied.
Senator McAdoo (Dem) Califor-
MIA, wanted the witness to explain
the benefits of the bill from the
standpoint of the average citizen.
Warren attempted to comply but
was interrupted frequently
1.-The narrow range within which
the dollar can be revised has a
steadying effect from fears of de-
flation or inflation.' he said. "The
easiest way to bring initiation is to
persist in deflation. Owing to the
reduction demand for gold it lost
value. Prices in gold counties stayed
high. Prices went up. Wages and
salaries went up. The depression
started under low tariff and a
world wide movement to raise wages
led to the depression.
WASHINGTON, Jan. %. U.P)-
President Rocsevelt's. money pro-
gram was plunged into senate
maelstrom today, with indications
that bitter debate would delay pass
age for several days.
Driving for speed on the dollar
devaluation bill, the senate bank
ing and currency committee ar
ranged to complete hearings to-
day with the testimony OF Owen
d. Young and Professor George
Warren.
Warren's appearance was attract
ing particular attention because
of his reputation as a '.myster-
ious man" of the Roosevelt ad-
ministration. He has remained in
the background of financial af-
fairs while being generally credited
with originating many OF the Presi-
dents monetary policies.
The house, passing the money
measure Saturday night with many
of the Democratic leaders puzzled
over it's contents and significance,
presented a picture OF mass power
which assured the Democratic ad-
ministration of prompt compliance
with it's policies.
In contrast there was discussion
over the weekend of Republican
filibuster against the bill in the
senate. Prolonged delay from this
source appeared unlikely, how
ever. Senator Glass, DEM, Va,
a leading opponent of the meas
ure, is not given to filibusters and
takes the attitude that the DEM
ocratic majority is determined to
pass the bill and that prolonged
recistance would he futile