Show BIMETALLISM SOUGHT Issue of Currency on A t p 7 5 c. c 1 S Silver Gold Base MayBe May 7 b Be Called For in n Plan Pla 3 Congressional te ders Work on Legislation to Give President Wide Powers Over Monetary System B Br By Associated Press Prell WASHINGTON April 20 20 Intent Intent upon getting quick authority authority authority au au- au- au to direct a controlled inflation President Roosevelt Roosevelt Roose Roose- Roose-j Roose velt and his economic counselors collaborated with congressional congressional congressional advocates of currency expansion today in the drafting drafting drafting draft draft- ing of legislation slated to be acted on without delay Congressional leaders struggled to overcome constitutional constitutional st stumbling blocks in the proposed legislation to empower empower empower em em- power the president to direct a controlled inflation There appeared to be in the Roosevelt Roosevelt Roosevelt Roose Roose- velt program a definite idea for lor some form of bimetallism It was made emp emphatic that whatever whatever whatever what what- ever new paper is issued will be backed by precious metals It was assumed this would mean both gold and silver However the president wants first to o work out an international agreement agreement agree agree- ment for bimetallism and that is definitely definitely del i in mind in his imminent world economic cono lc conversations CAN DELEGATE POWER Congress has the power to delegate dele dele- gate ate to the president authority to hange change the gold content according to he the flexible tari tariff provisions which were vere sustained by the supreme court Senator Pittman D. D Nev said There will have to be some limits put in In this case it very probably will be limited to 50 per pcr cent Under the silver section the pres president president dent would be authorized to accept up to in silver from an any country as part payment on the total tota war debt from all countries with a limit of 50 cents an ounce on th the silver There will be checks checks' and safeguards safeguards safe sale guards in the plan said the Nevadan adding it would seek to use the instrumentality in in of the existing banking banking banking bank bank- ing setup and silver sliver certificates could be issued against the metal received receive by the treasury on war debts Speaker Ra Rainey Dey told reporters th the administration inflation tactics s were directed to meet assaults on American Amer Arneri can commerce by foreign nations The presidents president's move was toward bimetallism he lIe said and would place Continued en Page Pace Two ROOSEVELT AIMS AT BIMETALLISM I Continued Tram From p Page Fate ce One the executive in a position to meet be the the nations nation that depend upon the pound sterling on their own ground MUST l COOPERATE Unless those nations come com with us to some ome international stabilization of money they ar are lost Rainey said there had been concerted concerted concerted con drive by European nations against the American dollar and that hat they had been attempting to take all of our gold awn away from us to leave us stranded and reduce us uso to o a fourth or fifth filth class power power He c called the presidents president's action the most statesmanlike move taken by any my chief chic executive in my memA memo mem- or ory A draft of at the proposed amendment to o the farm bill was completed by democratic leaders late today with a provision for authorizing new cur currency currency rency up to S The bill bill as it st stood od after repeated White WhiteHouse House and capitol conferences would grant the executive broad power pow pow- er to Issue currency or treasury notes with provisions ons for a fund set up by congressional appropriations for their redemption Lower the gold content of at I the doliar dol dol- either his hL own own motion or by I international agreement looking to a return to the gold standard by leading lead ing jag nations and a harmonizing of ot domestic domestic do domestic and foreign currencies Accept up to In silver as part payment of at the total war debts with the silver value limited to 50 cents an ounce Currency could be issued against the silver thus received re reo re- re by the treasury The measure eliminates that part of the old Thomas plan providing another alternative alternative tree free coin coinage ge of silver liver at a ratio with gold to be fixed by y the president The treasury note provision w would uld amend the old greenback law of at 1862 and allow unlimited issue of ot this currency cur rency which would be legal tender for tor or payment of all all public and private debts S Appropriations for the redemption fund Cund would be used to retire the notes In this way Th The government would bu buy up outstanding outstanding outstanding out out- standing government bo bonds cl and appropriate appropriate ap ap- appropriate monc money to pay the Interest I but ut the bonds would be he destroyed as ashey they hey were bought s so o. o the a. a lons could be used to retire the notes themselves The bill wo would ld give to Mr Roosevelt Roosevelt Roosevelt Roose Roose- velt authority to Issue unlimited new currency as le legal al tender under the theold theold theold old greenback lawIt law law- It has been asserted asserted repeatedly however that Mr Roosevelt is set against any printing press unsecured unsecured cured currency The new legislation also would enable en enable en- en able the president to r reduce uce the gold content of the dollar by international agreement or otherwise AGREE ON LIMIT To overcome constitutional ions to the latter proposal it was agreed tentatively to limit this authority author author- ity ty to a reduction of ot the gold content of the dollar by 50 per cent the cent the same principle as is is involved in his control con con- rol over tariff rates Reacting to the thc skyward sky swing of stocks and com commodity i prices congressional congressional con con- gressional le leaders ders appeared to be bc standing behind Mr Roosevelt's cam cam- aign But quick action was desired by y those in m authority to get the situation situation situation sit sit- fully in his hands as soon as possible Enthused over results of the movement move move- me meat ment t. t congressional argued argued ar are ar- ar gued in Interviews that the net result would be he to make unnecessary the Roosevelt proposals for refinancing o of farm arm and home mortgages Easier Easler money conditions conditions would make this unnecessary they contended con con- tended ended While the president worked with his advisers at the White House to smooth out constitutional difficulties Senator Thomas D D. Okla Okia at the capitol revealed his view that the impending proposal would solve every ev cv- ery cry problem so far as the money question is concerned and be of tremendous tree tre- tre benefit to bargain with for for- eign powers for uniform money 1 te ems Careful no note was being taken 01 or orthe the rising markets and to what was happening to the dollar in letting it seek k its own level on foreign ex cx- changes At the treasury meanwhile intensive intensive sive study of at how closed banks of the nation n can be aided in re reopening reopen reopen- penin pen pen- in ing ng was carried on by Secretary Woodin and governors o of the tw twelve lve federal reserve banks The governors had reported business business busi busi- ness throughout the co country n try improved in in nearly all lines recently They also discussed the governments government's gold old embargo and its effect upon bustness busi bust ness Secretary Woodin and Lewis W. W Douglas budget dirc director tor met today with the president and Senator Robinson Robinson Rob Rob- inson of Arkansas the party leader at the White WhiteHouse House The objectives sought ought apparently are satisfactory t to congress but the method of at accomplishment Is proving a little difficult Although the proposal would empower empower em era- power presidential issuance of new currency it was reemphasized in administration administration ad ad- ministration circles today that there is no intention of turning on the printing presses presseL O ON GOLD AT HOME IE It also s o was stated that while America Amer ica leafs is of off the g gold ld standard in international international trade as a r result of Roosevelt's withdrawal of gold support of the dollar dollar dol dol- lar in foreign exchange th the United States is technically on oct the gold standard domestically In Itt seeking eking the authority proposed by congress it is the too idea of Mr Roos Roosevelt velt to k keep p a firm control over the Inflationary process He wants a anew anew anew new price level and a greater exchange ex cx- change of money but he wants to b bable be beable beable able to stop the inflation within bounds Enthusing over the bill In the draftIng draft draft- ing lug of which he has had a part Senator Senator Sena Sena- tor tar Thomas told reporters It will put value back into commodities com corn and real estate and there will be no necessity to refinance farm mortgages It is is also a bank relief bill as it will put value back into the collateral as basis for lor approximately of frozen deposits It will put value into every se ur ity in the banks and be the salvation of every bank In America Thomas said the fourfold program would give the president authority to issue treasury notes under the old greenback law of 1862 1802 but In greater amounts and to make them legal tender for lor both public and private debts It also would authorize the priA It A dent In his discretion to reduce the gold content of the dollar either independently independently in in- dependently or under an international agreement returning foreign nations to o the gold standard and with a domestic domes domes- tic tie content in harmony with other currencies Further provisions provision would permit the acceptance of silver in part payment pay ment of war debts and authorize the secretary of at the treasury to prepare rules and md regulations with approval of the president for administration of the law There would be no limit on the amount of tr treasury notes the government govern ment could Issue Thomas said One feature would be a redemption fund to retire the not notes which would work this way The government would use u-se the notes to buy up outstanding government government govern govern- ment bonds and then destroy the bonds Then from time to time congress congress con con- gress would be asked to appropriate money to pay the interest on the bonds but as the bonds would have been destroyed the money would be put in a fund to retire the no notes paid out for the bonds S jS 4 Roosevelt lt Q Cold d f Order Is Issued c t cWASHINGTON 1 WASHINGTON April 20 1 President Roosevelt's executive order forbidding the export of gold except in m a few instances and authorizing the secretary of the treasury to regulate regulate regulate regu regu- late foreign exchange was wu issued from the treasury this afternoon The order prohibits the earmarking earmark earmark- ing lag for foreign account and the export ex cx- port of gold coin gold bullion or gold certificates from the United States or any place pIece subject to its jurisdiction except that the secretary of the treasury treasury trea trea- sury may issue licenses for lot the exp export rt of the gold coin or bullion earmarked or oz or held in trust for a recognized foreign foreign for for- eign government or foreign central bank or for the Bank of International I Settlements He may permit export of ot the metal imported for or or gold in reasonable rea rca amounts for tor usual trade requirements requirements re re- of at refiners Importing gold bearing materials under agreement agreement agree agree- ment to export gold old gold actually required required required re re- re- re for the fulfillment of ot any contract contract con con- tract entered into prior to the date of the order by an applicant who in obedience to the executive order ol of April 5 has delivered gold coin gold bullion bumon or gold certificates to the gov Jov With the approval of the president he may permit export of at gold for transactions which he may deem necessary necessary necessary essary to promote the public Inter Inter- est eat The order authorizes the secretary to regulate any transactions in for for- foreign eign exchange |