Evening star., 1934-01-13
PRESIDENT READY
TO |MPOUND GOLD
OF RESERVE BANKS
Step Seen Preliminary to
Permanent RevaIuation
of Dollar.
INTENDS TO MANAGE
OWN MONEY PROGRAM
Power Claimed Under Thomas
Amendment to Call in Metal to
Insure New Moves.
BY the Associated Press.

President Roosevelt was prepared to-
day to take over the Nations largest
heap of outstanding gold-that held by
| the Federal Reserve System-as a pre-
liminary to eventual permanent de-
valuation of the dollar.
He is believed to want all of this
basic monetary commodity in the Treas
ury. along with a proper proportion of
silver, to insure the power of new moves
effeCting the Nations monetary policy.
Just when the next step In the ma
tional-managed currency program will
come, Mr., Roosevelt is very carefully
keeping to himself. One thing is cer-
tain. however, he intends to manage the
new money program himself
Arguments as to whether the admin
istration could call in the Reserve Sys-
TENS gold we're answered calmly by
the President late yesterday with the
declaration that he had the power,
under the Thomas amendment, to order
the entire S3,6O0.00O 900 held into the
Treasury's vaults.
Regarded AS Necessary.
This step is regarded as necessary by
most monetary experts to insure that
no outside profit would result from per-
manent devaluation of the dollar. This.
OF course, would result in an increased
price for all the gold outstanding
A burst of reportorial questions yes
terday as to when and if he would call
in the Federal Reserve gold and when
he would announce his next dollar
move, merely caused the President to
smile and leave the queries answered
only by a wave of his hand.
At his regular semiweekly newspaper
interview, however, he did say he had
no speeches IN mind for the near fu-
ture and indicated the same would hold
for any further personal appearances
before Congress.
He made it plain that he regarded the
complex monetary problem as one out
side Of public discussion. AT the same
time, little or no interest was manifest
at the White House over the several
moves on Capitol Hill for hearings and
discussions about this problem.
Meanwhile, both Senate and House
chambers remained quiet due to a week
end recess. Then the Senate will take
up the controverted ST. Lawrence pact
again and the House will turn to tax
matters.
Mr. Roosevelt considers that Congress
already has given him virtually all the
power he needs over the monetary Sit
uation, but beyond knowledge that his
ultimate goal is a price level for COM
modities equal to that of 1926 and a
dollar that will pay off debts at the
price then bargained for, even favored
monetary experts appear not to know
what his future moves will be.
This holds good also for the interna-
tional exchange side of the picture. al
though Mr.. Roosevelt has indicated he
does not think the time is right for
stabilizing the dollar permanently WI
the British pound and the Frer. q
franc
The President described Thursdays
talk with Secretary of the Treasury
Morgenthau, Attorney General Cum
mingS and Gov. Black of the Federal
Reserve Board as a continuation of the
usual conversations checking up on the
progress of the new monetary policy.
The White House evinced no particu-
lar interest in the hearings to begin
Monday before the House Coinage Com
mittee, where the advocates of various
money policies will be heard.
Those who have agreed to testify
include Irving Fisher, Yale professor
Father Charles E. Coughlin Of Detroit,
Paul Warburg. critic of the admins
tration's money policy: Frank A. Van
derlip, New York economist. and Prof.
o. M. w. Sprague, who recently re-
signed as a Treasury adviser in pro-
test against the Roosevelt monetary
policy.
There is no doubt that the President
intends to keep his own grip on his
monetary program.
Central Bank Secuted.
incidentally. he brushed aside re-
ports of the creation of central bank
as a bad guess. The remark was made
that this would be taking a course just
the opposite from that of President
Andrew Jackson, who abolished a CEN
trail bank
Chairman Somers of the House
Coinage Committee said yesterday that
after his monetary hearing begins he
will advise the President OF that fact
so an administration official may be
| DESIGNATED to testify if the Chief EX-
ecutive feels such course to be ad-
visable.
The whole situation is clouded, not
only in this country, but throughout
the world" Somers said. Members
of Congress have difficulty figuring it
out and each nation distrusts every
other nation. We hope to remove
some of the clouds"
Gold Price Unchanged.
| Meanwhile the Governments gold
price was unchanged today at S34 o6
an ounce. This offer for neWly-mlned
! domestic metal was posted Tor tne
! twentieth successive business day as the
administration continued the longest
record for a steady figure since buying
| began October 25.
lTR PILOT NAMED