Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1935-03-21

BUSINESS AND CURRENCY
FOR HEAVIER INCOME TAXES
NO MORE DEvALUATIoN
Last week President Roosevelt
called for regulation on public utility
holding companies in a special mes
sage to Congress, declaring that ex-
cept where absolutely necessary,
they must go. He called attention
to the propaganda" being sert out
against legislation which Is designed
to protect investors. Mr., Roosevelt
declared that the proposed action
will not destroy a penny of actual
value so far as operating companies
are concerned and that the disap-
pearance Of utility holding compan-
les. which cannot justify themselves
as necessary for the fu~nctioning Of
the operating companies, Is impera-
tive IN view Of the evils that have
been uncovered In the past.
Ordinarily. under party govern
ment, one would imagine that when.
a party secured ~undisputed control
OF the Legislative and executive
branches, the affairs OF state would
make progress and that the course of
government would be smooth. How
ever. such Is not the case at this
time, although the Democrats secur-
ed an amazing majority in Congress
last fall. Here we have Congress
ending its eleventh week with prac-
tically nothing done. OF course, Z
few measures have been passed but
legislation of the greatest import
ance to the so-called New Deal re-
mains untouched.
AS week after week rolls by with
out accomplishment, one wonders
what the outcome will be. While
some progress has been made, even
on the bonus, the social security pro-
gram, MIRA extension, the future Of
the AAA, banking reform, labor pro-
posals and other matters are ahead
OF US. The President, apparently In
different to the delay, Is no doubt
following his own ideas. Perhaps,
when the fever to adjourn begins to
work In the congressional blood, the
Administration will be able to secure
effective action along the lines that
1t deems vital.
Something like a bulls eye was
scored by the Treasury Department
when, by a stroke OF the pen, it drew
upon the Governments gold profits
to the extent Of $675, 00O, 900 to wipe
out that much OF the national debt
by retiring two issues of long-stand-
ing bonds. The move met the ap-
prevail OF Senator Elmer Thomas,
critic OF the Administrations monet
airy policy and was also loudly cheer
ed by Conservatives and Wall Street.
Two billion dollars OF gold profits re-
main In the sterilization fund.
What the Treasury did was to use
the money to call In, as Of August
LIST, a $500, 900, OO0-issue OF refunded
Spanish War bonds and a 5000, 000-
Panama Canal issue. Both have the
privilege and have been
used as backing for national bank
notes. The new move will retire
practically all the outstanding ma
tiona1 bank notes and leave three
OF paper money outstanding
Reserve notes, silver GER
tfficates and United States notes.
80
In return for the bonds, the gov
eminent will give the Federal Re-
serve banks an equal amount in gold
certificates, issued against the gold
seized in ~devaluating the dollar. The
banks can then issue Federal Re-
serve notes against the certificates.
The government, by the transaction,
saves a debtcarrying charge OF 81,
$50, 0O0, 900 annually.
Some possibility Of a currency in
crease exists because the reserve
banks can issue circulation notes to
the extent OF 1857, 500, 900 against
The certificates. This is done under
the rule that allows such banks to
circulate currency to the amount OF
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