Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-07-02
Roosevelt PLANNING
mo Surrender Over
Money, Neutrality
Leaders in Congress
Rally Shattered
Forces for Fights
By the Associated Press.

President Roosevelt was reported
yesterday to have taken a mo sur
render position in his twin battles
with a rebellious Congress over
monetary and neutrality legislation.
Friends said that apparently the
Chief Executive had no thought of
compromise on either issue. His last
public word on the monetary ques-
ton was an insistence that his DOW
ers be continued, and Secretary OF
State Hull, only yesterday reasserted
the administrations demand for
neutrality legislation of the sort
which the House turned down Friday
night.
Administration leaders had the
advantage of long holiday week
end to rally their shattered forces
in an effort to put through the
Senate next Wednesday legislation
to revive the Presidents power to
devalue the dollar and continue op-
Grafton of the 81 900 900 900 stabiliza-
ton fund.
Both sides admitted the result was
in doubt, though Senator Minton.
Democrat, of Indiana predicted that
by the time the vote was taken the
Presidents friends would be able to
count enough noses to assure adop-
ton OF a conference report already
approved by the House. On the
other hand. Senator Taft. Repub-
Ican. OF Ohio said he believed the
report might be beaten.
Issue Dead, Some Believe.
The prospect for neutrality legis-
lation along the lines desired bv the
administration was another CUES
ton. 1t was clear that administra-
ton forces would continue a fight
for it, but some opponents contended
the issue was dead for this session.
A controversy within the monetary
controversy was the contention bv
some legislators that a favorable
Senate vote Wednesday would not
revive the monetary powers which
expired Friday at midnight.
Senators Taft and Vandenbere.
Republican. of Michigan. spear
heads of the Republican attack on
the devaluation authority, asserted
yesterday that it would be necessary
Tor the Roosevelt forces to introduce
entirely new legislation. taking it
through the routine channels Of
Congress.
The pending legislation was 50
written as to extend the expiring
powers. A vote on it before the
midnight hour ended the fiscal wear
was baked by debate by Republicans
and some Democrats. which dragged
out the session to 1853 am. yes
terday.
Before adjournment, it was agreed
TO have vote at 5 pm. Wednesday.
Sees No Question of Right.
Taking issue with Senators Taft
and Vandenberg, Senator Adams.
Democrat, of Colorado, author of
Senate-approved amendment to the
bill which would have put an end to
the devalution section, said that II
the Senate approves the pending
legislation, there could be no uues-
ton as to the Presidents right to
cut an additional 9 cents of gold
value out of the dollar any time in
the next two years.
Senator Adams stood with the
two Republicans, however. on the
contention that the $4,000 900 900
Sterilization fund, set up to main
tain this country's currency on a
desired level with those of other
countries, could not be revived by
the pending legislation.
THAT two billion dollars is a part
OF the Treasury's general fund now.
and the only way that it can be
set up as stabilize ton fund is for
Congress to appropriate the money,
which the pending legislation
doesn't do Senator Adams declared.
Against this. however, administra-
ton leaders displayed an undated
letter from the Attorney General
to the President asserting his opin-
ion that adoption of the legislation
any time after the close of the fis-
cal year at midnight June 80 would
confer the same powers on the Pres
ident as would have action before
that date.
Treasury Is Silent.
With the worlds money markets
inactive for the week end, the Treas
ury also was silent on developments.
1t took no action toward fixing e
new price for domestically mined
silver, although the Presidents
proclamation setting a value of
1854 cents on the metal also expired
at midnight Friday.
Senator Adams commended a silver
amendment to the pending none
tary legislation, setting the price
at slightly more than 70 cents.
would stand on its own feet because
it was so drawn as to constitute
new legislation and not the extern
sion of any previous laws.
Support of several Senators of the
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