Evening star., 1934-01-15
Text of Roosevelt Message
President Asks Congress for Specific Legislation to
Vest Title to All Gold in the Government.
so Per Cent Reyduati0n Favored.

out of the profits of any devaluation,
there should be set up a fund Of
$4,000, 100000 for such purchases
and sales of gold, foreign exchange
and Government securities as the
regulation of the currency, the
maintenance Of the credit of the
Government and the general well
fare of the United States may re-
quire.
Certain amendments Of existing
legislation relating to the purchase
and sale Of gold to other monetary
matters would add to the con-
venience Of handling current prob
lens in this field. The Secretary
Of the Treasury is prepared to sub
NIT information concerning such
changes to the appropriate commit
tees of the Congress.
The foregoing recommendations
relate chiefly to gold. The other
principal precious metalEsilver-has
also been used from time imme-
mortal as q metallic base for cur
rencies as well as for actual cur
rency itself. It Is used as such by
probably half the population of the
world. 1t constitutes a very impor-
tant part of our own monetary
structure. 1t is such crucial
factor in much Of the worlds in
ternational trade that it cannot be
neglected.
On December 81, 1888, I issued a
proclamation providing for the
coinage Of our newly mined silver
and for increasing our reserves of
silver bullion. thereby putting us
among the first nations to carry
out the silver agreement entered
into by Sc governments at the
London Conference. This agreement
is distinctly step in the right di-
rection and we are proceeding to
perform our part of it.
All of the 66 nations agreed to
refrain from melting or debasing
their silver coins, to replace paper
currency of small denominations
with silver coins and to refrain from
legislation that would depreciate the
value Of silver in the world mar.
kets. Those nations producing large
quantities of silver agreed to take
specified amounts from their domes-
tic production and those holding
and using large quantities agreed
to restrict the amount they would
sell during the four years covered
by the agreement.
If all these undertakings are car
ried out by the. governments con-
cerned, there will be a marked in
crease in the use and value of silver.
Governments can well, as they
have in the past, employ silver as
basis for currency, and look for
greatly, increased use. I am, how
ever. withholding any recommenda-
ton to the Congress looking to fur
ther extension of the monetary use
OF silver because I believe that we
should gain more knowledge of the
results of the London agreement and
of our other monetary measures.
Permit me once more to stress two
principles. Our national currency
must be maintained as a sound cur
rency which. in so far as possible,
will have fairly constant standard
of purchasing power and be adequate
for the purposes of daily use and the
es Ablishment of credit.
The other principle is the inherent
right of Government to issue cur
rency and to be the sole custodian
and owner of the base or reserve Of
precious metals underlying that cur
rency. With this goes the perogative
of Government to determine from
time to time the extent and nature
of the metallic reserve. I am conf
dent that the Nation will well realize
the definite purpose of the Govern
ment to maintain the credit of that
Government and. at the same time,
to provide a sound medium of eX-
change which will serve the needs Of
our people.
FRANKLIN D. ROOSEVELT.