Evening star., 1934-01-23

Continued From First Page)
(Republican of Maryland and Towns
end Republican, of Delaware opposed.
Senator Gore was present. but did not
vote. and Senators Couzens and Carey
(Republican) Of wyoming were absent.
Norbeck's vote for the bill was cast
py proxy by Fletcher.
The ayes were:
Glass, Buckley, McAdoo Adams. Wal
cott Steiwer. Kean, Wagner, Barkiey'
Costigan, Reynolds. Byrnes, Bankheao'
Norbeck and Fletcher.
Before the committee met. the ao-
ministration shaped an announcement
Of the start of its $4,000, 900 re-
financing problem. Secretary Morgen'
THAI made clear after conference
with Federal Reserve Board off1cla!s
and the President last night there was
an understanding upon the length.
size and interest rate OF tne ne" co'-
eminent issue"
Promising to make known his plans
before nightfall. Morgenthau guarded
them closely beforehand. observers
speculated that the first issue probably
would be for a billion or more, since
the Treasury's cash on hand now STANDS
at about the half-billion mark, but
looked for the issue to be IN more or
less routine form.
The Treasury hoped to have the new
money bill enacted before other issues
are put out to make up the huge total
planned for the next six months.
Administration leaders set Saturday
as the goal for approval OF the bill In
the Senate, but conceded 1t might take
much longer in view Of the contro-
yersial amendments
The bill was vigorously assailed at
Yesterdays committee session ana just
as vigorously defended, with President
Roosevelts principal monetary ad-
visers. DR.. George F. Warren Of Cornell
and DR.. James H. Rogers OF Yale.
asserting the benefits to business and
to the wage Garner, the debtor and
the creditor would be numerous.
Prof. Warren was emphatic in as
serting that "by cutting the gold con-
tent of the dollar We can raise prices"
This. he said would make it easier
for men to pay their debts, tncreas7
business activity, make for mgh9c
wages and render it easier to pay taxes.
THE greatest benefit will be real
lied by the home owner, the farme-
and other debtors" he said.
Two influences Predicted.
Prof. Rogers saw great lnudtlonaI-
possibilities IN the measure and tn
proba bility that substantial prlcc
increase would assert itself within 81
months. But. he felt that the measur
provided ample means Of controllin-
the inf1ationary process, which, he said
otherwise might mean a credit ex-
pansion of Sl7,500,0 100000.
Rogers predicted two major eco
nornic Influences" would flow from tn
measure.
"It depresses the dollar In the for
eien exchange markets of the world"
he said. 1T creates a profit, the utili-
zation of which consists of direct in
flationary influence of first magnitude.
Owen D. Young. noted flnancier,
urged the committee to write into the
measure a time limitation, thus making
the bill one for statedly emergency pur-
poses and not measure making funda-
mental and permanent changes In the
Nations monetary and banking sys-
tenn.
He agreed with Federal Reserve
Board officials, who testified last week.
In the opinion that the gold were better
left in the Reserve banks, with the
Government receiving book credit for
the profit accruing to the owner Of the
gold through devaluation OF the dollar.
Like the Reserve System officers. too.
he was apprehensive Of the operation
of the sterilization fund. saying 1t held
possibilities of tremendous expansion,
which he estimated at s30,000.000 1000
to $4,000, 100000. And he asked that
the committee not approve certain fea
lures of the measure which he said
might destroy" the Reserve System