Evening star., 1939-04-22
Glass 10 Lead
Senate Fight on
Bill
Coalition Will Seek
End of RooseveIt's
Devuluution Power
BACKGROUND

BACKGROUND
In the early part OF his admin.
tstratton. President Roosevelt
sought higher commodity price
tuder for the country. TO attain
tt. he depalued the dollar. He
also sought to keep prices in this
country IN general alignment
Dtth prices abroad. He estab.
lshed the sterilization fund. His
congressional authority to de-
pdlue and to stabilize ends June
so unless 1t is reneved.
By the Associated Press.
Led by Senator Glass, Democrat,
OF Virginia, a coalition of Senate
Republicans and some Democrats
drafted strategy today for a fight
against continuance of the Presi-
dents power to devalue the gold con-
tent Of the dollar.
Extension Of this power until June
80, 1912, was approved by the House
yesterday, along with continuance
to the same date of the 81 1000 ,OOO, 900
stabilization fund and the Treas.
ury's authority to buy domestically.
mined silver for ga GA cents an ounce,
far above the world price. All these
powers are scheduled to expire June
80 this year unless Congress extends
them.
House Republicans made a Wig
orous fight against continuance Of
the devaluation authority, but were
defeated, 225 to 158. This power per-
mits the President to devalue the
gold equivalent of the dollar an.
other 8 per cent of its former
amount. Mr.. Roosevelt cut Al per
cent from the dollars gold valua-
ton on January 81, 1884.
Indicates Disapproval.
A Senatt banking subcommittee,
headed by Senator Glass, already
has conducted hearings on the
monetary bill. The Virginian and
the Republican members have been
strongly critical of the devaluation
power.
An informal poll taken by ono
member indicated continuation Of
this authority would be disapproved
by the subcommittee, perhaps on
the ground it would continue uncer.
tainty among businessmen.
Chairman Wagner of the full
Banking Committee, supporter Of
the entire monetary program, con.
ceded there would be "a real battle
over the devaluation extension.
Administration spokesmen have
argued that the full program is
necessary to defend American inter-
ests against any possible monetary
moves by other nations. They have
denied any present intention to de.
value the dollar further.
Will Follow Glass Lead.
Republican committee members
said they would follow Glass lead in
fighting the devaluation extension
and would not offer any proposal of
their own.
The $4,000, 10000 sterilization
fund which the House voted to con-
tinue was created to steady the value
of the dollar in foreign exchange and
thus facilitate the country's foreign
trade. Republicans contend that it
has been operated with unnecessary
secrecy.
From start to finish, the House
fight over the bill was one of party
against party. Republicans were
aligned solidly against the measure,
sharpshooting at it from every angle.
But the heavy Democratic majority,
once more under the control Of It's
leadership, supported the bill almost
to a man.
The minority focused its chief op-
position against the dollar devalua-
ton provision and twice went down to
defeat on amendments to strip 1t
from the bill.
The question is" said Represent
ative Luce, Republican, of Massachu-
sets. will you use at this moment
the opportunity to allay the fears of
the business world? This amend
ment will appease them. The only
problem here Is one of psychology
it's not of finance.
when business is stagnant, tho
country suffers. Here's your chance
to stifle fear and let business go
ahead"