Show fr I INFLATION I r. r MEASURE SPEEDED UP t i c 7 Strenuous Strenuous' Fight Looms Loos in Senate Se ate Over Gold Clause Committee Approves Program m After ter OPP f of Revaluation evaluation Lose Out by Tie Vote on Plan JL l By Dr Associated Press Fret r a-r WASHINGTON April 21 The 21 The administration credit currency expansion program won quick approval from Irom the th senate banking committee e today af alter after r Democrats had bad ac split on the provision to authorize revaluation ot of the gold dollar Pr President Roosevelt directed that the be bi speeded l to enactment with the mammoth fa farm m bill nd deba debate e Will win be shut oft off 1 if ne necessary essary to Hill a filibuster At about the same ame time Ume a hig high official of of oL the federal reserve said in inan mi mian an interview tha thas an agree agreement ent had been reached lor for the federal reserve system to support whole whole-h whole heartedly the administrations administration's Inflation program program pro program gram by purchasing government se se- The purpose would be to release the funds funds' tied up in those for other investment The banking committee approved the inflation program without a record record record rec rec- rec- rec ord vote after a motion to strike out the provision authorizing the president president dent to lower the gold content of the dollar by as much as 50 per cent had lost by a ti tie tic vote of ot 10 to 10 Four our Democrats including Chairman Chairman Chair Chair- man Fletcher Florida Glass Virginia Virginia Vir Vir- ginia McAdoo California and Gore Oklahoma and six Republicans wanted want ed the gold provision eliminated while eight Democrats and two Republicans Republicans Re Re- publicans voted to keep it in This division indicated a strenuous fight light on the over the the provision provision although some of the opponents including including including in in- Fletcher believed such power pow pow- er would not be exer exercised by the president if it granted REED OPE OPENS S FIRE FiR Another blast of r regular gular Republican can opposition came fr from m Senator Reed of Pennsylvania who sho said in ina a formal statement liTo To tamper with the currency is like lighting the fuse us of or a high explosive explosive ex ex- ex- ex plosive and standing by to see sec what happens Inflation is the process by which governments throw off of responsibility to go on a jamboree They pursue a picturesque course for a while but they wake up with witha a headache This is for the sober SODer men and women women of America to remember when inflation is js proposed There may be a temporary exhilaration but there is always a morning after The senate had flung i itself into dispute dispute dis dis- dis- dis without waiting for the banking committee formally to report the measure Senator Pittman D. D Nev New who helped frame th plan roseto rose its defense defense de de- tense in a heated debate which Senator Sen Sea ator Reed began Replying to Reeds Reed's c complaint that the proposal would raise prices only temporarily and then too high for persons persons persons per per- sons to stand Jt- Jt Pittman declared Reed could not get out of h his mind the person who has SAME IE OLD ISSUE Its Its It's the same old issue the Nevadan Ne- Ne Nevadan Nevadan vadan asserted We are thinking of the man who This has been an an issue now for four years and thank God the people woke up at the last election Senator Robinson D. D Ark hastened back to the capitol from Continued on Fate Pue Two I PRESIDENT ASKS INFLATION SPEED r Continued From Pace Page On One the White House to direct progress on the emergency measure Republicans were insisting upon consideration of the legislation separately sep from the farm bUlIt billIt billIt bill bUl It is 15 not proposed to prevent fairand fairand fair fairand and reasonable debate on this amendment amend amend- ment meat said Robinson or on amendments amend amend- ments meats that may be offered If it should develop that a filibuster 1 is in progress we believe we wc have the thc votes to make short work of or it To invoke the cloture rule takes a two-thirds two vote Undoubtedly there will be some ome delay in final disposition of the farm bill bUl he ha continued due to the amendment amendment amend amend- ment referred to but it is essential that prompt action be taken on the amendment in view of the discussions In n prospect with foreign governments on economic subjects It Is obvious that President Roosevelt Roosevelt Roose Roose- velt wants quick approval of the currency currency cur cur- rency rency bill to strengthen his hand in conversations beginning tonight with foreIgn emissaries on economics The legislation gives him authority to o lower the gold content of the do dolar dollar dol dol- Ian lar ar as much as 50 per cent WANTS STABILIZATION One of the objectives in his economic economic eco ceo negotiations is the reestablishment reestablishment reestablish reestablish- ment of a world gold standard on a J revised basis By this step Mr Roosevelt Roose Booze velt expects to attain a stabilization of currency and exchanges Asked ked by Reed if it President Roosevelt Roosevelt Roosevelt Roose velt had not at first planned to send the he bill up with no limit on mone money that could be printed Pittman replied replied re re- replied plied he had not Senator Borah R. R Ida askin asking Pittman how much inflation would he je possible was told that at least was permitted about two billion less than has las been frozen In the banks since March 4 Borah observed Commenting on provisions for federal federal fed eral reserve action to expand the currency cur currency rency Borah said In my opinion it will be utterly impossible to get gel the board to approve inflationary moves noves My disappointment In this bill Is that hat it doesn't provide for inflation Borah concluded Pittman PUtman then turned back to Reeds Reed's argument against the program saying say say- ing ng the bond currency proposal was substitution of a bearing bond with the power of circulation CITES SOARING MARKET He cited the soaring market quotations quotations quota quota- of the last two days and said Is it a calamity that a man hasto hasto has hasto to pay a little more for lor the wheat wheal he 10 cats and the cotton he wears Yet that hat is the argument of the senator rom from Pennsylvania With dispute looming influential house Republicans agreed privately that if H the thc bill is passed by the senate senate sen sen- ate it certainly will become bec law in view of the great ity lly in the house While they were meeting Representative Rankin D D. Miss Introduced introduced intro Intro- the Thomas proposal in the house Coauthor with Senator Thomas ola ofa of ol a currency expansion bill bilt in the last congress he was one of ot th the i inflation conferees with President Roosevelt Roose Roose- velt veit yesterday at the Wh White te House We expect to accept the Thomas amendment to the farm bill Rankin said in case it is adopted by the i ithe senate But I am introducing It Inthe in the he house as a separate measure so O that we may take it up and pa pass c it Incase in incase incase case the opposition in the thc senate en tc should prevent its adoption as s an amendment to the farm bill The meeting of the house howe Republicans cans was with Ogden L. L Mills formen former for for- mer men secretary secretory of the treasury as part of the campaign announced yesterday by Senator Reed to delay the new program to arouse popular reaction The steering committee considered particularly methods of inciting objections objections ob oh- to the portion of the proposal pro authorizing the issuance of 3 3 in new new currency The general gen eral opinion was was as LS one member put it that it depends on how many conservative con Democrats there are in the sena senate te Mills expressed to the steering com corn a fear that the expansion would not be limited to but put that future authorizations would increase that amount EXPLAIN PROPOSAL Administration explained lined to the senators that the controlled inflation proposal would be initiated in practice as an expanded credit arrangement with provision for purchases purchases purchases pur pur- chases In the open market by federal fed fed- eral reserve banks of three billions of government securities If It such a n program program program pro pro- gram did not work out the pr president would be authorized to issue three billion in treasury notes or currency reduce the gold content of the dollar up to 50 per cent or accept of the war debts In silver at 50 cents an ounce As the senate committee got under underway underway underway way reports report circulated that a proposed pro posed substitute plan was under consideration consideration con con- declaring a new monetary policy under which a a. stabilization board would maintain commodity prices at the 1926 level This plan which was not expected to receive serious consideration would direct the secretary of the treasury to purchase government obligations at the rate of a week until the thc 1926 price level had been reached and to sell or purchase e after that to maintain that level WOODIN AGREES Senator Thomas left the senate committee hearing before the session was over and said Secretary Woodin had bad agreed to the bilL bUL bULWith With this bill Thomas quoted the treasury chief chie as saying sang the depression depression depres depres- sion slon is over If It administered in a businesslike way we can combat any any- thing Indicating the credit expansion provision would be used at first Thomas said there never has been beer any idea of turning inflation loose Other senators upon leaving the committee room indicated Sen Senator tor Glass Dem Va a former treasury treasury treasury treas treas- ury secretary and md a conservative on the subject of currency had been critical of several provisions In the plan Once the senate passes the farm bill with its inflation rider house leaders do not expect t to accept it with the numerous senate amendments amendments amendments amend amend- ments but rather to insist on the differences between the two branches being reconciled in conference Representative Byrns the Democratic Democratic Demo Demo- cratic leader there predicted to newspaper newspaper men that the currency expansion ex cx- proposition would be 00 accept accepted ac nc- d by a substantial house major ity HOLDS BILL NECESSARY Weve reached the point where point where we have got to have currency expansion or else else else- he said terming enactment of the farm bill necessary sary because inflation will be too slow to remove the need for lor immediate help for the farmer Byrns does not expect the ex pan pan- sIon slon plan to bring drastic inflation however The reaction we get in the next few days he said might might Im Im I'm no ro at all aU sure of that though though bring bring ua u us usa us usa a greater increase in prices than tm th expansion justifies In Iri other words word prices might rise very high soon only to drop back a little when the ea ex program has begun From Frou that point onward the rise should b bin be bein in proportion to the expansion |