Evening star., 1934-10-12
PLAN TO REVALUE
DOLLAR IS DENIED
Senator Lewis Assures Pub.
lie No Initiation Move
Contemplated.
Continued From First Page)

bring to the Treasury ranged as nign
as 200 900 900 ounces. The recelptS
to date, however, are only about ga
600 600 ounces. and Treasury officials
said thev did not expect them to 60
much higher.
Though there are various conflicting
opinions as to the possible effect
Of this silver program, advocates OF
increased use of the metal in the
monetary system have contended 1t
would increase commodity prices and
property values.
Commodities Advance.
President Roosevelt feels that
somewhat higher prices are needed.
This was made clear Wednesday and
as traders studied the declaration
yesterday, attempting to gauge the
possibilities, bulliSh sentiment caused
stocks and commodities to advance.
Prof. George F. Warren visited the
White House Yesterday. He is lead
ing advocate of the theory that de-
valuing the dollar increases the price
of goods. Officially, he merely lunched
with the President to report on q
recent tour he made of Europe.
Published reports that officials are
considering plan to reduce the con-
tent of the silver dollar were secuted
In informed Treasury circles today.
Although the President has such
bower. there was said to be no indica-
.tion that he intends to use it.
Has StabiIizing Power.
Under the Thomas amendment to
the agricultural adjustment act, he is
empowered to cut the Silver's content
to any extent necessary to stabilize"
domestic prices. The gold reserve act
also conveyed authority to reduce 1t
in proportion to any decrease in the
dollars gold content, without reference
to price levels.
If this were done, and the none
tary value raised from $l.29 an ounce
to a higher figure, correspondingly
less silver would be needed to achieve
the one-to-three ratio.
Another bit of monetary news today
was a Treasury statement showing
the average person had As cents more
in his pocket on September 80 than
he did a month previous. Money In
circulation per capita was $43l0 on
the latter date
This, however. was more than 50 less
than the September, 1888, figure of
S4488.
Total money in circulation was S.
456, 1862, TAB, of which S483,23l, SIS rep
resented silver certificates.
Wholesale Prices Drop.
For the second straight week whole
sale commodity prices last week con-
tinued to decline. The Labor De-
partment yesterday reported that the
average level last week was 234 per
cent below the 1926 average, although
it stood 285 per cent above the low
point for 1893, the week ended
March f.
Foods, farm and textile products led
In the drop with the former declining
per cent from the previous week and
meat prices receding 4 per cent So
The fact that Senator Bulkley is
regarded as a conservative where cur
rency experimentation is concerned
apparently gave his observation of yes
terday especial significance. The
Ohioan said he personally felt that
further devaluation was not needed,
and that he most aSSuredly saw no
need for such step at this time.
The President devalued the gold
dollar approximately Al per cent last
January by fixing the domestic price
for gold at S35 an ounce, but under
the gold bill he may devalue as much
as so per cent. This leaves him con-
siderable leeway If he still feels that
the Warren theory had proved cor
rect.
Mr.. Roosevelt's own view is that
further currency moves are weapon
which may or may not be used in
his effort to hoist the general price
level.
Whether he has become convinced
that the time to use that weapon
will arrive in the near future is a
matter for conjecture. Many Of his
advisers have said that credit ex-
pansion is preferable. The admins
tration has attempted that and has
indicated impatience with the bank
ing fraternity in general over the
result.
The taciturn Prof. Warren told
news men that he had no comment
to make" when asked if money was
a subject during his White House
luncheon engagement. His chief in
terest, however, is gold, and it was
taken for granted that the develop
ments growing out of the admins
tration's experiments with the yellow
metal were reviewed.
Economists Differ.
Administration economists, or quite
a few Of them at least, take the posi-
ton that the results of devaluation
thus far have been favorable but
many argue that the very failure of
prices to reach the desired figure is
proof that the gold manipulation is
not a panacea. Several, who aided
Warren in his original calculations,
now express the belief that care must
be taken to prevent an overdose Of
the gold prescription
Warren apparently has never varied
from his formula that gold is a
commodity and that the way to in
crease the value of other commodities
is to decrease the value Of gold.
He told reporters that he found con-
ditions in England quite cheerful"
us France going to stay on the
gold Standard" he was asked.
S1""I wish I knew" the professor re-
piled.
~ CuTNESE SILVER SCARS