Evening star., 1939-06-18
WASHINGTON, c. JUNE 49, 1sse-pARr ONE
Deva|uation Authority
Is Opposed by Bloc
Headed by Glass
Fight Against Power
Of President to Reuch
Floor Tomorrow

BY the Associated Press.
Headed by Senator Glass, Demo-
crat, of Virginia the Senate's often
effective coalition of Republicans
and Democrats opposed to admins
tration fiscal policies has organized
for a vigorous battle to strip Presi-
dent Roosevelt of his powers to de-
value the dollar.
mo country in the world ever
benefited by cheapening its money"
Senator Glass, one-time Treasury
Secretary, told reporters. Its un-
sound for any administration to
have that power"
The fight against the devaluation
authority will come to the floor
tomorrow when the Senate considers
House-approved measure to con-
tinue the presidential power for two
years from its June 80 expiration
date.
The bill also would continue for
two years the Treasury's authority
to maintain the $4,000 900 900 stabi-
lization fund and to buy domesti-
cally mined silver at prices above
the world market.
Move by Westerners.
Concurrently, there was an effort
afoot to change the monetary law
in an entirely different manner
Two Western Senators-Thomas
Democrat, of Oklahoma and Nc
Carran, Democrat, of Nevada-let
the Senate know they would de-
mand a measure to provide:
That until 194l all domestically
mined silver purchased by the Gov
ernment for monetary purposes be
at price of $lN an ounce; that
the Government acquire no foreign
silver except when it is offered
in exchange or payment for Amer
ican-produced agricultural COM
modities for export
The present price for domestic
silver is 64.64 cents. fixed by presi-
dental proclamation which expires
June 80.
Senator Thomas said he would
ask Congress to direct adjustment of
the value of the dollar to it's 1925
level and issue $4,000, 900 900 in ad-
ditional currency.
Adams Optimistic
Senator Glass told reporters the
fight against the devaluation power
was probably futile but Senator
Adams, Democrat. of Colorado pre-
dicted I'VE will get at least 40 votes
to eliminate it."
When all the Senate. except the
Vice President, votes, 40 votes are
a majority.
Mr.. Roosevelt already has cut the
dollar to SO per cent of its former
gold weight. and the devaluation
| power permits a further cut of 8
per cent.
Senator Adams asserted a policy
Of devaluation "is inevitably disas-
trous to the country indulging in it. u
He said that if the administration
should reduce the gold value of the
dollar another per cent, it would
realize paper profit Of about ST.
400 900 900 on its $4,000 900 900 gold
hoard
IT'S Cents Reported Urged
I'm just afraid they might take
notion to cut the dollar again so
they could get al THAT money and
spend it," he remarked
Some Western Senators were re-
ported authoritatively to be urging
Secretary of the Treasury Morgen-
thau to fix a price Of IT'S cents an
| ounce for silver for period of ls
months. Secretary Morgenthau was
said to have received these sugges-
tions coolly, and to have indicated a
continuance Of the present price was
the most silver-State representa-
tives could expect.
! Unles the emergency power to pay
above-market prices for silver is
continued, domestic producers will
get only what their product will
bring from private buyers after
June 80.