The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-16

lie said both promised speedy
Senate Republicans in their
first caucus Of the session de-
termined to exert every eff
fort to force the senate bank
ing committee to hold ex-
haustive public hearings on
the bill.
Chairman Duncan Fletcher of the
senate banking committee said the
Republicans could have as many
hearings as they wanted.
Governor Black of the federal
reserve board, meantime. disclosed
that the board on Dec 90 had rec
commended to the President that
congress be asked for the new leg
islation under which the treasury
will take over the reserve banks
gold holdings of more than $780,
900 600.
On the surface at least, this dis
posed of indications of reserve board
opposition to the new program.
Sentiment Overwhelming
The gold reserve act, title of bill
carrying out the Presidents recon-
Imendations for taking into the treas
ury all monetary gold and revaluing
the gold content Of the dollar at a
point between so and so cents,
aroused constitutional dispute, but
sentiment appeared overwhelming in
support of the measure.
Senate Republicans we're called to-
gether to discuss opposition strategy.
Their leaders, however, had little
hope of defeating the Presidents
program. The most they believed
they could do would be to force pub
lie hearings on the bill
They foreSaW a senate division ap-
proXimating the 81 to 81 vote last
April on the Thomas amendment by
which the President was given
authority to devalue the dollar down
to so per cent.
ODJcCtlUHS ARE hdlSeu
Constitutional objections were
raised promptly, and answered
equally promptly after the Presi-
dents newest monetary proposals
reached Capitol Hill.
Representative Robert Luce CRep..
MassD stated the case of the OBJ
jectors. The intended seizure. he
said, whereby the treasury would
take from gold owners, 'two-fifths.
possibly one-half, of their property,
without just compensation" would
violate the bill of rights.
The government, he pointed out,
is paying more than S34 an ounce
for gold abroad, but proposes to pay
Citizens of the United States s2067
an ounce" He predicted the SUI
preme court would invahdate such
legislation.
Byrns First to Reply
Representative James WadsWort
(Rep.. N. y. said the constitutional
question involved was the right Of
the government to take the federal
reserve banks gold stocks of So
566,000,000 and giving in return
certificates which are not negoti-
able"
House Majority Leader Joseph w.
Byrns was first to reply. There is
no doubt Of the constitutionality of
congress delegatlng monetary power
to the President" Mr. Byrns said.
The supreme court decision in
the Minnesota mortgage foreclosure
case indicated clearly the court
would take similar view as TO
emergency monetary matters"
Sees mo Violation"
Senate Majority Leader Joseph T.
Robinson conceded the constitu-
tional question involved was not
without difficulties" but declared his
study had convinced him that the
seizure docs not appear to me to
be violation of the Constitution.
He declared it would be "fairer"
to give the public the profits of re-
valuation, particularly in the case Of
the gold which the public was re-
quired to deliver to the federal re-
serve banks under the anti-hoard-
ing proceedings.
Silver advocates were disorganized
by the Presidents message. Some
regarded his declaration for a
greatly increased use Of silver" in
the monetary structure as a hopeful
sign. Others were disappointed in
his insistence on waiting until re-
suits of present international ana
domestic silver policies are demon
strated before embarking on new
moves to rehabilitate the white
metal
Senator Burbank Wheeler Dem,
Mont), announced he would con-
tinuc to press his bill for silver re-
monetization at Is to l.
A monetary conference summoned
by Senator Elmer Thomas Dem,
Okla, for today planned to devote
its attention to silver. the Presi-
dents message having disposed OF
ooIa v1~0r1oco1c 0rioir1alfv c06ndIied