Evening star., 1943-04-17
Senate Kills Authority
OF President 10 Lower
Gold Content Of Dollar
Passes Bill Extending
Two Billion Currency
Solicitation Fund
BY the Associated Press.

BY the Associated Press.
Legislation authorizing con-
tinuation of the $4,000, 900, 900
currency stabilization fund con-
frcnted the House today after a
determined bloc of Senate Re
publicans, with Democratic aid,
amputated a provision to extend
President Roosevelt's power to
dcvaluate the dollar.
Senate passage of the abbreviated
measure was preceded by an ex-
pressed understanding" that neither
the Treasury nor the Senate Bank
ing Committee would bring up the
controversial dollar devaluation pro-
posai at the present session of Con-
gresS.
Repeatedly pressed to a speedy
vote in the interest of the current
$4,000, 100000 War bond drive. the
bill was snatched out of committee
and thrust to the Senate floor yes
terday few hours after Secretary
Morgenthau urged retention of the
devaluation clause.
Morgenthau Asked Extension.
MI Morgenthau contended that
the provision. first granted the
PRESIDENT In 1884 and expiring June
50 was needed as defensive
weapon" to combat any devaluatio
operation of a foreign nation.
Mr.. MorgenthaG told the COM
mlttee 1T would be helpulo tn can
'lrfue the power, but it isn't a mat
Ter OF lie and death" The Presi-
cent has held the power in high
trust, Mr. Morgenthau observed.
using 1t only once in the midst of
deep depression That was on
january 81. 1884, when Mr., Roose-
Veit reduced the gold content to so
cents, IN terms OF the old dollar
ondef present law he has authority
10 cut 1t cents more.
Senator Taft, Republican, of Ohio
spearhead OF an opposition that in
ciaoed some Democratic committee
members, declared that the Consti-
tutlon gave Congress. not the Presi-
cent, the right to regulate money
HE ADDED that no better advertise
ing could be given the current bond
sale than to assure purchasers the
value of the bonds they buv could
not be deprecated by further de-
valuation of the dollar.
Mr.. Morgenthau expressed hone
that Senator Tafts remark would
not be misunderstood and hurt
the BOND drive. To remove any such
mlsapprehension, the authoritative
sources on the committee said. it was
determlned to act upon the measure
as quickly as possible
Differ on Value of Move.
While Chairman Wagner said he
didn't think erasure of the devalu-
alton clause would have ANY very
important result other Senators
said they agreed with a statement
OF Senator Maloney, Democrat, of
Connecticut. that the discontinue
ance would have very good effect
on the country"
Senator Vandenberg, Republican,
OF Michigan, asked assurance, before
agreeing to immediate action on the
bill, that the devaluation contro-
versy would not appear again at the
present session of Congress.
Senator Wagner declared he did
not propose to bring it up and Sen
etor George, Democrat, of Georgia,
also remarked he did not believe the
Treasury would ask further con-
sideration
Objection to any such understand
ing, however, came from Senator
Murdock, Democrat, of Utah, who
cautioned the Senate that he would
not be surprised If the President
Is not forced by international con-
ditions to ask for continuation of
tt,oco r>ou-orc