Evening star., 1939-06-29
Morqenthou Warns of Donqer
Il Congress Lets Presidents S
DevoIuotion Authority. Lapse
Roosevelt Takes Hand
In Money Fight as
Conferees Meet
BACKGROUND


In state of filters, Roosepelt ad-
ministration sought to protect
American financial interests in
early NeU Deal days through
discretionary deualuation of gold
content of dollar and trading in
foreign moneys through S2,000,-
100000 stdbilisation fund. Au-
thorisation for both of these er-
perimentS has been ertended Sep
eral times, but Senate coalition
OF Republicans and Siluer Demo-
Gratis Doted end OF depaluation
po1Uer this ,Ueek.
By the Associated Press.
Secretary of the Treasury Nor
genthau voiced today the admins
tration's unf1inching opposition to
curtailment of President Roosevelt's
monetary powers with an assertion
that farmers, businessmen and
laborers had better start worrying
about the dollar" if devaluatiou au-
thority is not continued.
While Senate Majority Leader
Barkley and House Majority Leader
Rayburn conferred with Mr.. Roose-
welt at the White House about the
bitter congressional contest over the
Presidents emergency powers over
money, the Treasury Secretary told
his press conference:
Certainly, since 1884, no farmer,
businessman or laborer needed to
worry about the dollar, but they
had better start worrying now if
the devaluation power lapses tomor-
row night"
Apparently the main hope of the
administration in preventing that
lapse was to work out in meeting
of House and Senate conferees,
starting this afternoon, some COM
promise of Senate restrictions in
the pending monetary bill which
would split a coalition of hard
money Republicans and silver-State
Senators These groups joined to
write into the bill Treasury price
Of 77.57 cents an ounce for domestic
silver and to vote an end to the
Presidents authority to devalue the
dollar further. Further purchases
of foreign silver also were banned
by the Senate.
Deadline Midnight Tomorrow.
Little time remains. If no bill is
passed before midnight tomorrow,
the devaluation power as well as the
$4,000 000, 900 stabilization fund eX-
pire automatically.
Representative Rayburn, back
st the Capitol, predicted Congress
would complete action by tomorrow
night on the monetary bill and all
other legislation essential to get
through before the fiscal year ends.
1t was indicated he had told the
President the same thing, and this
led to speculation that he and Sen
ator Barkley MAJ have been opti-
mistic in their d1cussions over the
final outcome of the monetary fight.
It was learned that Representative
Rayburn told the President the
House never would agree to any
curtailment of his monetary power.
The President was reported by
some informed legislators to have
asked his Capitol leaders to insist,
not only on continuing his dollar de-
valuation authority, but also on ex-
tending the foreign silver purchase
policy.
Mr.. Rayburn said the $1,000, ,000,-
600 relief bill. approved by the Sem
ate in today's early hours and
swiftly sent by the House to a joint
conference as soon as the chamber
met today, also would be finished in
time to become law He added it
was the leadership's intention to
keep the House in session into to-
night if necessary to finish action
on the pending neutrality bill.
Morgenthau Sombre.
Secretary Morgenthau wore an
unusually sombre expression as re-
porters trooped into his high-ceil-
inged Office in the Treasury Building.
He lust didn't know" he said, what
would happen about gold, silver or
other monetary factors if Congress
did not pass the bill to extend ex-
piring powers by tomorrow night.
He said also, that in case the
monetary bill was delayed, he did
not know whether the Treasury
would buy any domestic silver after
tomorrow night until the bill finally
was passed.
He announced that until Congress
(See MONETARY, Page A-30