Evening star., 1934-11-25
SENATE MONETARY
BLOC IS DIVIDED
CoughIin Conferences Re-
veal Leaders Disagree on
Currency Programs.
BY the Associated Press.

By the Associated Press.
Divergent views on the way to get
more money into circulation showed
the Senate monetary bloc" split in
several directions yesterday after con-
ferences with Rev. Father Charles S.
Coughlin of Detroit.
Interviews with the three Senators
who conferred with Father Coughlin
disclosed that each had his own idea
for dealing with the situation, but
that none was very enthusiastic about
the plans of the others.
They were generally agreed on only
two thingS-that money is too valu
able and should be regulated by the
Government
All took issue with Senator King,
Democrat. of Utah. head of the silver
bloc at the last session, who recently
expressed the view that the money
situation was satisfactory" and that
no new legislation was needed.
Three Offer Own Plans.
Senator Wheeler. Democrat, of Mon
tana. one of the three who conferred
with the Detroit priest, reiteratd his
demand for free coinage of silver at
16-to-1 ratio. Senator Thomas,
Democrat, of Oklahoma, proposed
further devalution of the gold dollar
Senator McCarran. Democrat, of Ne
vada. offered a plan for paying of
all tax-exempt Federal bonds through
the issuance of new money, backed
by the gold and silver in the Treasury.
I'VE are on the road to recovery
and a long way out" Thomas said.
Our progress is due in the main to
the administration monetary adjust
ment program. 1t has worked salts
factorily. but it hasn't gone far
enough.
The next step is to still further
cheaper the dollar which will raise
prices correSpondingly.''
Three Agree on Silver.
Broadly, all three Senators agreed
on the theory of remonetizing silver
through free coinage.
But Wheeler stood for free coinage
at Is to l with gold, McCarran said
silver should be coined free at the ex-
iSting statutory price OF $l.29 an
ounce, which at the present price of
gold would be about 81 to l. Thomas
proper ratio" but added he did not
believe it should be l6 to |.
Referring to McCarran's plan,
Thomas said he had never advo-
Gated" the plan for issuing new money
to retire outstanding bonds, explain
ing that he was trying to avoid in
fation."
I'VE are headed for imitation" he
said, speaking of the Governments
spending policies. The policy of the
administration will result inevitably
in uncontrolled imitation. We are
borrowing about five billion dollars a
year. The banks are putting their
money into Government bonds. The
time will come when they won't have
any more money to put into them
Then we will have a bond crash like
We had stock crash in 1929.
Would Avert Effect.
"I am trying to avert that by
getting more money into circulation,
wholly controlled"
Wheeler, suggesting a central bank.
said the Government should control
the credit and currency instead Of
leaving it in the hands of the big
banking crowd
Thomas agreed. but suggested this
could be accomplished by the Gov
ernment taking over the Federal Re-
serve system.
The Federal Reserve crowd"
Thomas said, lis just waiting to get
that gold back (taken by the Treas
ury under Naturalization. Unless
We take control from that crowd they
will undo all that's been done and
take the gold back with profit"