Evening star., 1934-01-15
Continued From First Page.)

ing of national financial structures
in times of emergency. The prac-
tice of transferring gold from one
individual to another or from the
Government to an individual within
q nation is not only unnecessary,
but is in every way undesirable.
The transfer of gold in bulk Is es-
sential only for the payment OF in
ternational trade balances.
Therefore it is a prudent step to
vest in the government OF nation
the title to and possession OF all
monetary gold within its boundaries
and to keep that gold in the form
of bullion rather than in coin.
Because the safekeeping of this
monetary basis rests with the Gov
ernment, we have already called In
the gold which was IN the posses
sion of private individuals or cor
porations. There remains, however,
a very large weight in gold bullion
and coins which is still in the pos
session or control of the Federal
Reserve Banks.
Although under existing law there
is authority, by executive act 10
take title to the gold in the pos
session or control of the Reserve
banks. this is a step of such impor-
tance that I prefer to ask the Con-
gress by specific enactment to vest
in the United States Government
title to all supplies of American
owned monetary gold, with provi-
sion for the payment therefor IN
gold certificates. These gold GER
ti1cates will be. as now, secured at
all times dollar for dollar by gold
in the Treasury-gold for each dol
lar of such weight and fineness as
NAV be established from time to
time.
Such legislation places the right,
title and ownership to our gold re-
serves in the Government itself: 1t
makes clear the Governments own
ership of any added dollar value OF
the countrys stock of gold which
would result from any decrease OF
the gold content of the dollar which
may be made in the public interest.
- IL of rrjf
Justice cast upon the Government
the loss of such dollar value If the
public interest in the future should
require an increase in the amount
of gold designated as dollar.
The title of all gold being in the
Government, the total stock will
serve as a permanent and fixed
metallic reserve which will change
in amount only so far as necessary
for the settlement Of international
balances or as may be required by
a future agreement among the ma
tions of the world for redistribu-
ton of the world stock of monetary
gold.
With the establishment Of this
permanent policy. placing all none
tary gold in the ownership of the
Government as bullion base for its
currency, the time has come for
more certain determination of the
gold value of the American dollar.
Because of world uncertainties, I do
not Believe it desirable in the pub
lie interest that an exact value be
now fixed. The President is au-
thorized by present legislation to FIX
the lower limit of permissible re-
valuation at so per cent. Careful
study leads me to believe that any
revaluation at more than 60 per
cent Of the present statutory value
would not be in the public interest.
I, therefore. recommend to Congress
that it fix the upper limit of per-
missible revaluation at go per cent.
That we may be further prepared
to bring some greater degree of sta
bility to foreign exchange rates in
the interest of our people, there
should be added to the present
power of the Secretary of the Treas
ury to buy and sell gold at home
and abroad. express power to deal
in foreign exchange as such. AS a