Evening star., 1939-04-21
BULLETIN.

BULLETIN.
The House passed and sent to
the Senate today bill extending
for two years the Presidents au-
thority to devalue the dollar
again. the Treasury's s2,OOO.OO0,-
coo stabilization fund. and its
right to pay subsidies on newly
mined domestic silver.
BY the Associated Press.
The House tentatively approved
today provision of the monetary
bill extending the Treasurys S200O,-
100000 stabilization fund until June
30, 1941.
Republicans Immediately after.
ward offered an amendment to de.
lete a section providing for a two
year extension of the Presidents
authority to devalue the dollar
further.
BY a 2-to-l margin on a strict
party vote, the Republicans went
down to defeat in their initial at
tempt to change the monetary
measure. Representative Reed, Re-
publican. Of Illinois proposed the
amendment. to require an audit Of
the stabilization fund by the Cen
eral Accounting Office. It was
bowled over by standing vote of
$50 to 81.
On the basis of an incompIete
poll, hackers of the monetary meas
ure predicted House passage TODAY
with few significant amendments.
The check-up was made by the
democratic whip" organization in
the midst of heated debate. The
group had orders to turn Demo-
Gratis out in force to override anv
opposition amendments.
Republicans were seeking to kill
two features of the bill. Pro-
visions they wanted to scrap would
extend until June 80. l941. the Treas
ury's domestic silver purchase pro.
gram and the Presidents authority
to reduce the gold content of the
dollar another per cent. The dol
lar was devalued Al per cent in 1884.
Democrats Standing Pat.
The minority was less concerned
about the Treasury's $4,000 600. 900
stabilization fund. They wanted,
however, to strip some of the secrecy
from its operations and insist that it
not be manipulated in any manner
that might involve America in war.
Democrats, for the most part,
apparently were standing pat on
the measure.
Asserting there was just as much
an emergency now as when the
powers were conferred originally.
Representative Eberharter, Demo.
crat, Of Pennsylvania told the House
yesterday:
Political and economic conditions
are more uncertain than they were
f1ve. years ago, and this Nation. to
protect itself, must have these
powers"
Representative Andersen, Repub-
lican. of Minnesota contended the
President himself wants monetary
powers because 'he says we're still
IN state Of emergency" Repre-
sentative Andersen said the Presi-
dent had kept the Nation in a
state of emergency for six years"
While the House met an hour
earlier than usual to dispose of the
monetary bill, the Senate was in
recess until Monday, when it will
tackle the Byrnes bill to merge re-
lief and public works agencies. Some
Republican Senator'S were drafting
a substitute proposal to turn admin
lStratlon OF relief back to the States.
Eccles Gives Testimony.
Testlfying before a Senate Bank
ing Subcommittee yesterday, Mar
rlner S. Eccles, chairman of the
Federal Reserve Board, urged re.
vision of the Governments silver
purchase program which has brought
a large part of the worlds silver
to this country.
He testified there was mo justi-
f1cation from a credit or monetary
standpoint" for the United States
to continue paying a premium price
Tor foreign silver.
Furthermore, he said, a continue
ance OF silver buying ordered by
the 1884 Silver Purchase Act threat
ened ito destroy the domestic sill
yer industry in this country"
The Reserve System head testi-
ned on the bill by Senator Town.
send, Republican of Delaware.
which would end purchase of both
foreign and domestic silver and
terminate all related administra-
tion monetary powers.
The House debated the monetary
measure for five hours yesterday.
At one point Representative Dirk
sen. Republican. of Illinois referred
to the bill as inflationary, and then
Representative Andersen elaborated
that idea.
With all the gold America has in
Its possession, he said, There Is a
danger Of the greatest credit infla.
ton this or any other nation has
ever seen"
Instead of increasing exports to
foreign markets. he said administra-
ton monetary policies had "stimu-
lated imports and broken down the
price level OF farm products of this
country"
Take these powers away" retort-
ed Representative Rankin, Demo-
crat, OF Mississippi "and you remove
the ability Of the Government to
help the farmers and raise prices"
From Representative Robson, Re-
publican, Of Kentucky came state
ment that in devaluing the dollar
originally, In 1894, I'VE treated our
own citizens worse than Hitler
treated the Jews Of Germany"
He asserted Hitler had put a 10
per cent tax on the wealth of Jews.
whereas devaluation, in effect.