Evening star., 1935-02-21
Glass and ConnaIIy Engage
in Hot Debate on Floor
of Senate.
CHEAT AND REPUTATION,
VIRGINIAN TERMS BILLS
Texan Argues Currency Already
Is on Metal Standard-Mor-
genthau Satisfied"
BY the Associated Press.

By the Associated Press.
Former President Hoover's pro-
posal for an immediate return to the
gold standard stirred up a hot debate
among Senate Democrats today, in
which Senator Connally, Democrat.
Texas, contended the Government
was already on a gold standard, but
Senator Glass, Democrat, Virginia, as
serted. I'VE are on a fiat currency
basis"
The controversy f1arred shortly
after Secretary Morgenthau, the ad-
ministration's financial spokesman,
said he was satisfied" with the pres
ent program and saw no reason to
change, though the policy still was
on a day-to-day basis.
Connally, a Texas Democrat who
was one of the first to advocate de-
valuation OF the dollar, started the
Senate discussion by contending Mr..
Hoover was proposing to return to
the system that brought his admin
iStration tumbling to ruin about him.
Challenges Texan.
Glass. a conservative Virginia DEM
ocrat who has been critical of New
Deal monetary policies, listened in
silence at first. but finally leaped to
his feet to challenge the Texan and
charge:
We are on a fat currency basis
and following the decision of the
Supreme Court on a fiat bond basis"
Connally said the Supreme Court
had answered Glass.
NO, 1t hasn't answered me-" Glass
retorted. The court said that what
was written on those notes was
cheat and reputation and has said
that in spite Of this cheat and repudia-
ton if holder of a note undertakes
to get what is due him he can 60 to
hell"
While he debate waged warmly on
the floor. Democrats in their COM
ments outside the chamber contended
Mr.. Hoover's proposal was "impos-
sible," while Republicans mostly we're
silent.
Referring to Connally,s statement
that holders of gold clause Govern
ment bonds might go before the
Court of Claims or some other
agency ION the theory they may have
suffered damage" Senator Thomas,
Democrat, of Oklahoma. entered the
floor discussion by suggesting that
Congress itself wes always available
to persons wishing to file claims and
it would be willing to hear them.
Connally agreed and said the more
speedily the doubt" was removed as
result of the court decision the
quicker it would help stabilize the
currency and encourage business"
Hoover's Statement Admitted.
Senator Austin, Republican, OF Ver-
mont obtained consent to have
HOover's statement printed in the
Congressional Record behind Con-
nally's speech, which drew this COM
ment from the Texan:
That's all right. The more he
talks, the better off We are on this
side Of he aisle"
Thomas agreed with Connally that
the United States is on the gold
standard today" saying the dollar to-
day contains Is grains plus of gold.
After Thomas finished. Glass rose
from his chair to ask how any one
could redeem his gold dollar.
He can't go and get gold" Con-
nally agreed. But why does he want
it? Can he eat it? No, he can't eat
it. Can he wear it? No, he can't,
unless he reverts to barbaric customs.
Gold Demonetized.'
mo. he can't eat it," Glass inter-
rupted hotly. He can't wear it. And
he can't get it. In other words, gold
has been demonetized. We are not
on a gold standard"
Connaly insisted that gold was "a
yardstick" and that you don't con-
sumo it."
You don't get it." Glass inter-
rupted again Indignantly.
NO" Connally agreed, you don't
have to get it. Gold ought to be the
Governments property and not the
property of those who seek merely to
use it to hold up the Government and,
as the Chief Justice said, to enrich
themselves
Glass interrupted again to say that
Connally had passed the amusing
part of his speech and gotten to the
rhetorical part"
Then, waving paper bill before
the Senate, Glass shouted:
II hope the Senator will agree that
when the Government has control
over our money it will not break its
word and not swindle the people and
write a lie on every note it issues.
The Senator knows lie is printed
on the face of this BILL
Glass then read from the bill the
statement that it could be redeemed
in gold at the Treasury.
Senator Lewis of Illinois, Demo-
crat, got into the debate with a
reference to report that gold bloc
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