Evening star., 1941-01-02
Monetary
Continued From First Page)

Reserve Board, but of the II Federal
Reserve banks and the Federal Ad-
visory Council representing the 1000
individual banks in the Federal Re-
serve System.
The first effect the Eccles program
had on Mr.. Morgenthau's operations
was to make indefinite for him the
time when he would appear before
Congress and press for approval of
his own carefully developed fiscal
program, which he has made public
at press conferences during the last
six weeks. The Secretary said he
had mo definite plans" for con-
ferring with Congress or his pro-
gram, although it has financing
features which are vital in the
development of the defense drive.
Eccles Plan Revolutionary.
In part the Eccles program in
cludes the Morgenthau program, but
that inclusion is not considered an
effective deadener of Mr.. Morgen-
thaus opposition to plan which
calls for scrapping a great reservoir
of fiscal authority which the Presi-
dent has possessed for almost the
whole life of the administration.
The Eccles plan is almost as revolu-
tionary today as the New Deal
monetary program of 1888 was
revolutionary.
Mr.. Morgenthau said that he was
"going ahead" with submission to
the Senate Banking Committee OF
an answer to an elaborate question
naire sent to him early last year in
order to draw from him thorough
statement of the policies which ami
mate his administration of the
Treasury. The early issuance of the
QUESTIONABLE answers probably
would bring out in clear detail the
present financial opinions of Mr..
Morgenthau and supply an exact
measure of how far he is willing to
go along with the Federal Reserve
Board.
The points of agreement between
Mr.. Eccles and Mr.. Morgenthau are
these:
Raise the public debt limit.
No more taX-eXempt Government
securities.
Finance defense as much as pos
sible through taxation rather than
borrowing.
Public Debt Scars.
Mr.. Morgenthau has spoken Of a
desire to increase the debt limit tc
at least $65, 900 100000. Today it is
$49000,0 100000, and the Treasury re-
ported that the size of the debt it.
self now is $45,00l ,757 ,537. SO, which
is almost $2,000,000 above the former
limit of $45,000, 100000 The size OF
the debt went above the old limit
several days ago, Treasury officials
said but it did not show on the
books Immediately because of delay
in reporting baby bond sales at dis
tant post offices.
The Eccles program, if Congress
enacted it into law, would NEAR
the wiping out of the most unusua
monetary authority ever enjoyed by
an American President, and it /.
here that Mr.. Eccles and Mr.. Nor.
genthau are not, at once, in perfect
accord. Gone would be the power
enjoyed by the President of devalu
ing the dollar by changing its golc
content; the Treasury power to issu
$3,000000,000 in greenbacks agains
the Government credit, and th
power to issue S129 worth of cur
rency for each ounce of foreign silve
the Treasury purchases.
The greenback and the silver au
thorities have been dormant. UndeI
his gold authority, the Presiden
could create nearly $4,000, 900 900 il
new money by raising the Govern
ment price of gold from S35 to SAL 3.
an ounce. Besides withdrawing tn,
presidential power to change tn,
dollars gold content, Mr.. Eccle
would neutralize the credit effects o
imported gold-the steps to accom-
plish which Mr.. Eccles did not Sc
forth.
Whether this plan Is adopted O.