| Show ROOSEVELT ASKS REPEAL j OF GOLD STANDARD ACT 1 J Bill Explained ined As Lifting Handicaps Of Yellow Metal Makes Devaluation of f C Gold id D ll i cesary I V t aU Co S yi 1 11 1 U J 4 AFFECTS- AFFECTS FO FOREIGN Era DEBTS DEBTS' J J Makes MaRes Pay Payment P Possible Possible- h in Leg Legal Legai l T Tender B Br fly Pm Pits WASHINGTON May 28 Senator 26 Senator Glass Glan Dem Va said sard today the cou courts courts' woul would hold hold tb tho a administration proposal to make all contracts pa pay pat able in legal tender money unconstitutional sut if lf there thee is any integrity left leftin t tin in the cou courts Js with any regard to th the sanctity o of contracts The Virginian a former secretary of the treasury said it would be beU all allright right if the United States decided to togo go on a paper basis basis' to make m all all' aUfu fu future ture tore bonds and currency redeemable in legal tender but he he- objected to o th the phrase heretofore or here hereafter fter It would be utterly useless Glass held to enact the thel legislation with 40 per cent of the gold of the this country 3 J. J t re e W 1 Roosevelt has decided th thai t the Uie United UI ted I States should go off the gold standard by s statute tut He today requested d Chairman 1 n gall of the house house banking banking committee to 14 toj j introduce duc a resolution ti to pl place c the U IT u S. S off the st standard nd by ya law l 1 Jt The Alabama Alabam Democrat t conferred Id with the president at it the White House Howe Later he called newspaper me men en to tot his office and read a copy of the reso resolution lution which he he- said declares the United States is of off the gold goldst st stand nd ard by statute It jr repeals repeals' the gold standard act said adding that under the resolution no no bonds no obligations obligation Uon of oZ the federal government and no obligations of any form torm would have to tobe be paid in gold or or- gold currency ronCY upon the en enactment of the measure measure- He said it would be lie possible for forit forthe forthe the foreign debtors to pay the United States their w war r debts in any Jeg legal l money This bill frees the United States from the obstacles and handicaps of the gold standard he hc declared It Jt is an administration bill and anda a apart part of President Roosevelt's Roose emergency emer erner- gency relief program DEVALUATION NEEDLESS I In addition said the law lawf would m make keit it unnecessary for President Pies Pies- dent Roosevelt to devaluate the the gold dollar under the inflation provisions of the farm arm relief act acL St termed the measure one onet of the greatest steps toward stabilizing ing brig money in the United States All legal money under this act he asserted would meet all obligations ons payable in gold cold Chairman Fletcher of the senate banking cot committee ee will i introduce an identical resolution In in the senate enate Early hearings will be bec held an and andt expects action to come in both congressional bran branches hes n next week gall immediately introduced the bill in and made ade the following statement I 1 give givet it as my humble judgment that this this' bill marks a fins final definite and determinate step that wilt will bring bringa a revival of business b sinas' sinas and and anda a restoration restore restora tion lion of prosperity and happiness to the American p people The resolution solution i. i is i entitled To assure as sure uniform value to the com and d Continued on Page Pan TW T I L k 4 t 1 t tC C C s 7 e i a it a e 1 1 1 I 1 f i I 1 t 5 t t 5 S I I I 4 GOLD STANDARD REPEAL SOUGHT Continued from Pare Pue One Ont currencies of the United States an and d reads as follows TEXT OF 01 RESOLUTION Whereas the holding of ot or dealing dealin g in gold affect the public interest and andare are arc therefore subject to proper regulation regulation regu regu- lation lotion and restriction and I Whereas the existing emergency has disclosed that provisions of obligations obligations I which purport to give the obligee a right to require payment ingold in ingold ingold gold or a particular kind of coin or currency of ot the United States or In Inan inan inan an amount In monc money of the United States measured thereby obstruct the power of the congress to regulate the value of the money of the United States and are inconsistent with the declared policy of the congress to maintain at atall all times the equal power of every dollar coined or issued by the United States in the markets and andin andin i in n the payment of debts Now therefore be it Resolved by the senate and house of representatives of the United States in congress assembled that 3 a Every provision contained In Inor inor Inor or made with respect to any obligation obligation obligation obliga obliga- tion which purports to give the db db- a right to require payment ingold in ingold ingold gold or a particular kind of coin or currency or in an amount in money of the United States measured thereby thereby thereby there there- by is s declared to be against public policy and no such provision shall be contained in or made with respect to any obligation hereafter incurred PROVIDES PAYMENT Every obligation heretofore o or r hereafter Incurred whether or no not t nany any such provision Is contained therein there there- e in to or made with respect thereto shall 1 be discharged upon payment dollar for dollar doUar In any coi coin or currency which at the time of ot payment Is legal tender for public and private debts All Any such provision contained In any law authorizing obligations to be Issued by or under the authority of ot the United States Stales Is hereby repealed repealed re re- pealed but the repeal of any such provision shall shaU not invalidate any other or authority contained con con- tamed in such law I b As used wied in this resolution the thel term obligation means an obligation Including every obligation of and to I the United States excepting currency currency curren curren- cy payable in money of or the United States and the term coin or currency currency currency curren curren- cy cy means coin or currency of the United States Including federal reserve reserve reserve re re- serve notes and circulating notes of federal reserve banks and national banking associations Section 2 The last sentence of paragraph 1 of subsection b of section 43 of the act entitled An act to relieve the existing national economic emergency by increasing agricultural purchasing power to raise revenue for lor extraordinary expenses Incurred by reason of such emergency to provide provide pro pro- vide emergency relief with re respect to the agricultural indebtedness to provide for tor the orderly liquidation of of joint stock land banks and for other purposes approved May 12 1933 is amended to read as follows DEFINES LEGAL TENDER Alt All coins and currencies of the United States including federal reserve reserve re re- reserve re- re serve notes and circulating notes notes' of federal r reserve serve banks and national banking associations heretofore or hereafter coined or issued shall be legal tender for all debts public and private public charges taxes duties and dues except that gold colas coins when below the standard weight and limit of tolerance provided by law for the single piece shall be legal tender only at valuation in proportion to th their ir actual weight The decision of the president to seek gold legislation came suddenly The first inkling was WM this morning when he talked with They conferred but briefly Later the president consulted with his economic delegation and then with Secretary Woodin who announced announced an an- he soon would explain the action It was regarded in Washington as another move to give the president an absolutely free tree hand in his eco eco- negotiations with the other world powers Of course already the United States is off the gold cold standard but by repeal repeal re re- re- re peal of the gold cold act Mr Roosevelt will be free to negotiate any standard standard standard stand stand- ard he sees fit In the joint issued after alter his conferences with representatives representatives tives of or the foreign nations the president president president dent joined with the foreign spokesmen spokes spokes- men in urging an early return to the gold standard I Secretary Woodin did say that the purpose of the move was not simply one to permit a lowering of the gold ton Content tent of the dollar doUar Congress recently recently recently re re- gave the president power to todo todo todo do that Even before made his brief but significant announcement ment to reporters reporters reporters re re- re- re porters it had been reported he would soon Introduce a very Important Important tant measure drafted with utmost se se- se- se crecy MEASURE DRAFTED said the measure had been virtually completed late last lost night but that its final text was not approved approved approved ap ap- ap- ap proved until today Questioned as to the reason why the president desired this legislation waved his hand and replied have to ask the president ident He declined to discuss discus any of the details of the formulation of the pro pro- Subsequently said he did not think thin it was necessary to hold hearings before his committee but that it would consider the resolution and report it for tor action next week Representative G Goldsborough D D. Md with during his conference conference conference con con- ference with newspaper men said this legislation was the final step needed to improve domestic conditions conditions conditions condi condi- and to start the flow of ot credit from banks This bill eliminates all of the bugaboo bugaboo bugaboo buga buga- boo about the gold standard he averred The resolution does docs not change the gold content of the dollar it was contended contended con con- tended by an administration spokesman spokes spokes- man who also aIso contended that It would not change the gold old s standard standard stand stand- nd ard situation In the least While this spokesman was an administration administration ad ad- ministration official he declared to have his name nam used saying detailed explanation was due to come later At the senate meanwhile many leaders said they understood one of the purposes was to further weaken the dollar and to that extent raise commodity levels and provide tion I Chairman Ashurst of ot the judiciary committee said he was in favor r of vf the bill This bill cancels all gold contracts of ot the government and all private gold contracts and removes the gold cold dollar as ns a monetary base said This government doesn't want to make any more contracts contract in gold cold This bill bilI clarifies our position and lets the world know that instead of gold we are arc going to give it better security than gold behind our currency This Is an m administration measure It repeals the gold standard act as ns far tar as gold contracts are concerned and in my opinion repeals the entire act Hereafter the gold in the gold old dollar is ic worth only what it will buy on the basis of its itc weight and not on any other basis It was insisted in financial circles that the present gold content of the dollar as defined in the law law law- twenty twenty- five and tenths eight grains of ot nine- nine tenths fine would fine would not be disturbed d so far as the legislation went OPPOSITION LOOMS Oppositions to the thc legislation was predicted by Senator McNary of Oregon Ore- Ore Oregon gon Son Republican leader of the senate because of its retroactive features The charge will be made that it constitutes repudiation of ot government t obligations he said I dont don't believe there will be objection to applying g it to future issues At the state department it was sat said d one effect of ot the proposed legislation n probably would be to drive the dollar dol dot lar tar down on international exchanges es and perhaps enable the United States to stabilize it at nt a lower level tha than n otherwise would be possible France for weeks has been trying t to o induce the United States State to stabilize e the dollar at a high point preferably about the value which it held as com corn oared Dared to the franc before President t Roosevelt left the dollar to find its own level by placing an embargo 0 on n nIs gold The gold embargo has been officIally official officIal- nd ly interpreted as taking the United Unite d States of off the gold standard and it Is felt Celt repeal of ot the act under which Ish h the secretary of ot the treasury ic is directed directed directed di di- to hold the dollar at parity with gold wo would ld go the rest of th the e way Chairman Fletcher said the senate senat e r 11 banking committee WOUld meet oit morrow to h consider th the Ie Ieh which he said would fa 1 ministrations ministration's campaign th a hoarding and remove a an s of charging bad faith In any ani treasury issues He made public a saying the memo legislation t was of importance because a It completely regular present de facto situation public and as to bot t private debts debt b An offering of ai treat treasury gallons must be announced obi b bl bland and issued on on June i June Jun a 15 It fa is that at no question as to the wen nt of the government be raised g with In nr this thi issue or sues future L Cc c It would greatly facility i ministration of the orders rs a again to hoarding Cd d It would eliminate certainty in business gut Ce e It places old gold new legal tender ob obligations en same footing in tb respect of 0 f It would make c anneal com the declared alae congress t o a J |
