Evening star., 1936-02-04
ROOSEVELT CALLS
AIDES AS CAPITOL
AWAITS TAX PLAN
President Confers With 3
Cabinet Members and Jones,
Davis and Mcdonald.
M0RGENTHAU'S CONTACT
MAN ON HILL INCLUDED
Secretary of Treasury, Wallace
and Ickes Among Group Sum-
moned to White House.
BY the Associated Press.

BY the Associated Press.
A White House conference of chiefs
of the Governments lending and COLI
lecting agencies was summoned by
President Roosevelt today as Capitol
Hill awaited more concrete word of
the administrations tax plans.
Summoned to talk with President
Roosevelt were Secretaries Morgen-
thau, Wallace and Ickes Jesse H.
Jones, chairman Of the Reconstruc.
tion Finance Corp; Stewart McDon-
aid, Federal housing administrator;
Chester Davis. farm administrator,
and Cyril Upham, one of Morgen-
thau's assistants.
Described as Periodic Check.
The White House described the
meeting as periodic check-up on
the Governments revenue and ex-
penditure position"
But vast budgetary problems im-
pended. A big supply of cash must
be raised next Spring to meet the cost
of paying the bonus. for which Mr..
Roosevelt has asked an appropriation
of 2,249,OOO, 900.
The Wrltc House has passed word
needed In taxes to finance the new
farm program, while informed sources
have projected another $3.50. 100000 to
amortize ;he bonus cost. These state
ments aItaoy have had the effect Of
spurring Initiation talk on Capitol Hill.
Still to he estimated are relief de.
mands Ia the next fiscal year. Nor
genthau once mentioned the figure Of
So, ,000, ,00d. 900.
Inclusion OF Upham in the confer
ence aroused some speculation. Dur.
ing coocl essional sessions he has
served as Morgenthau's contact man
at the Canitol
Gold Trickles Out.
Added interest in the plans for
financing farm and bonus bills was
given by Mr.. Morgenthau's announce
ment Yesterday that banks had asked
and received Treasury licenses to ship
S., SOS 900 in gold from the United
States to France and Holland.
This development. reversing a west.
ward flow which had brought $2,0O0,.
100000 of gold from Europe to the
United States in 16 months, was
linked with current demands by con-
gressional infiation;sts that the Treas.
ury print paper money to pay of the
bonus. finance farm subsidies and aid
distressed agricultural debtors.
In foreign exchange markets, it was
said that money trading apparently
had felt the effects of the drive to ex-
pand the currency rather than levy
new taxes.
May Check Movement.
Whether the comparatively tiny
shipments were the forerunner of a
sizeable outgo was a subject of guess.
ing. Experts said that often, when
such a movement starts, it tends to
gain momentum.
On the other hand. some felt that
the Treasury's readiness to meet de-
mands for export licenses might cheek
the movement. Secretary Morgen-
thau, who explained briefly that the
French franc had risen to the point
where banks could profit by exporting
gold, said that If this situation con-
tinued further shipments would be
permitted as long as present exchange
mechanisms are undisturbed.
If such licenses were refused, in
formed students of the subject said,
the United States would thereby 60 of
the present r"gold bullion" standard.
leaving the dollar without its anchor"
in gold. There was no indication any.
where that such a refusal was pos
sibility; all recent monetary develop
ments point in the other direction.
Morgenthau Is Silent.
Since inflatiorists have been point
ing to the huge supply of gold in the
country and declaring that new money
should be issued against the idle"
metal, there was discussion here as to
whether an outflow of gold might tend
to curb their campaign.
No infiaticnist leader could be
reached Immediately for comment;
neither would Government officials
(See TAXES, Page A.