Evening star., 1940-01-27
Townsend Sees
Gold Purchases
Aiding Russia
U. S. Help Far Beyond
That Given Firms,
Senator Charges


helping Russia more than this coun-
try has been able to aid Finland,
Senator Townsend of Delaware,
ranking Republican on the Senate
Banking Committee, contended to-
day. He made the assertion in q
speech prepared for delivery at a
luncheon of the Del-Mar-Va Press
Association at Wilmington.
Certainly there is queer incon-
sistency between our ardent desire
to give embattled Finland every pos
slble assistance and our continuous
purchase of any or all gold mined
In Russia, which is now the worlds
second largest gold-producing coun-
try, the Delaware Senator said.
Meanwhile, the Senate Foreign
Relations Committee is expected to
meet early next week to review the
bill for additional financial aid to
Finland for military purposes,
which the Banking Committee ap-
proved, 18 to 2, Wednesday. The
measure merely increases the credit
OF the Export t-Import Bank, and,
without referring specifically to
Finland, would give that agency
discretionary power to make an ad-
ditional loan of $40 200, 900 to the
Firms.
Attack on Buying Policy.
senator ToWnsend's speech today
was primarily an attack on the ad-
ministration's policy of buying for
elgn gold and silver, and he urged
Congress to give serious considera-
ton to its effects.
Since Russia mines about $l75,-
100000 of gold year, our policy
helps Russia many times as much
as we have been able to help Fin.
land he continued.
Surely our purchasing of gold
and silver from Japan is not har-
monious with our s25 900 900 loan
to China or with our japanese
policy" he added.
| Something is definitely screwy
about such careless philanthropy.
| The Senator declared this coun.
try's payments for bullion imports
in 1899 were greater than the $780,
10000 Of merchandise exports, and
added:
Just picture it, more than 1900
ships and 100000 freight cars
could not carry away enough Amer
lean wealth to pay for the useless
gold and silver this country last year
alone bought and paid for without
a whimper."
Senator Townsend admitted that
the purchase program may create
jobs for American exporters now,
but inquired if the future sale Of
the bullion would not "unmaks
jobs"
Byrd Hits Bank Plan.
Senator Byrd, Democrat, of Vir.
ginia, took the position today that
the pending proposal to increase
the lending ability of the Export
Import Bank by slOO, 900 900 is incon-
sistent with the Presidents budget
effort to avoid raising the national
debt limit.
Although the bill adds that much
to the banks credit, only S20,000,-
900 of it could be loaned to Fin
land. and Senator Byrd said that,
while he favorS loan to the Firms
for military purposes, he ques-
tions the wisdom of making other
loans.
He suggested that the 500 900 900
increase for the Export-Import
Bank may partly offset the plan
to have other Government-con-
trolled corporations put s7O0 900, 900
OF their capital back in the Treas
ury. This step, coupled with a
$3.50 900 900 tax program, was out
lined in the Presidents budget
message as a means of staying with.
in the present debt limit.
Barkley Disagrees.
| Senate Majority Leader Barkley
took issue with the Virginian's
view. expressing the belief that the
need for the type of loans the bank
makes to help finance American
exports outweighs purely fiscal con-
siderationS.
Although an effort is expected to
be made in the Senate next week
to reduce the 100000 900 authori-
cation, all indications are the Sem
ate will leave the bank free to make
the additional s20,00O,0 900 credit to
Finland.
Senator Townsend said he realized
many Americans do not favor look
ing into the policy of purchasing
foreign bullion, because 'our gold
buying is helping the allies"
MY interest in this problem, how
ever, antedates the European war"
he continued "It is not connected
with the war. Almost year ago
I called for a Congressional study
of this question. And have called
attention to the silver fiasco repeat
edly.
Fortnight Way to Help.
IF we want to help the allies
that is separate matter and 1t
should be fully understood and de-
cided on its merits, openly. A forth
right way to help the allies would
be to repeal the johnson Act. In
calling attention to this fact, how
ever, wish to make it clear that
I am expressing no opinion on the
desirability or undesirability of re-
peal of the johnson Act" CThe act
prohibits loans to nations that have
defaulted on their war loans.)
Senator Townsend raised the ques-
ton that, if nations no longer base
the domestic value of their cur
rencies on bullion, "how long will 1t
be before they will decide to perma-
nently discontinue accepting gold
in settlement of international debts?
And then what will become of the
value Of our colossal gold hoard?"