Show S. S HOLDS L TION THREAT OVER BUSINESS Powers toBe toBe toBe to to- Be Used if Upturn K Begins to Weaken Administration Keeps ee s Hands Free Fres by Rejection of Stabilization Plan 4 I 1 By RICHARD L. L GRIDLEY Press Financial Correspondent WASHINGTON ASHINGTON June 26 The 26 The ad ad- tion will make further use usei if i it iti inflation on powers if it more than L temporary interruption occurs ine Iness' Iness in e ess' ess current forward movement he e United Press learned in official today The flie mere possibility of ot currency or 5 I inflation so far has helped bolter bol bolo ter iter prices rices and promote more norsal nor nor- sal buying The administration is to tomake make any actual exten exten- ive VI o Inflationary move as long as busies busi SW es ess carries along without the tie shot In b th the arm V A hIgh government official however howver how how- ever ver said Well trot out the tomas ThonaS as amendment if it business goes into ito I slump The h. Thomas inflation amendment to the farm act gave President Roose- Roose s elt authority to reduce the gold content content con- con tent sit of the dollar by as much as 50 percent er cent authority to Issue 50 la In United States notes to bu buy gov gov- securities permission to accept up to in silver in payment of war debts and authorized Ute ie federal reserve banks to purchase liP p to in governmental to ease credit small use has been made of he inflation powers so far tar fA fA A number of steps for credit and curi cur cur- i reney inflation however however- have been beer f In varying degrees all of which bae been factors In promoting price i advances tt These Include abandonment of the tio gold old d standard Issuance s of In government bond backed fed fed- teal bral reserve bank notes to replace a aie Me ie amount of gold backed money the public works pro- pro pam purchase of approximately in government securities b b i tile tiie federal reserve banks and the fending coinage o of In new I elver ver money on the proceeds of metal received in payment pa-ment of the June 15 Tar ur debts I J Abandonment ot of the gold standard while not In Itself inflation had hac somewhat the same effect as issuance of of paper money as it resulted in a of nearly 20 per cent in the j value of the American dollar doUar in world markets jf f Refusal of the United States to en en- to into any temporary monetary sta sta- sta agreement a at atthe the world cc economIc eco cco- conference leaves the admin admin- free to adopt more inflation liry measures to prevent a possible k in iR n American business l y while the program to spread em em- Is getting Into full swing p By refusing to stabilize the dollar the Uie administration hopes millions of of purchasing power in the Ionn of cash and credit may be leaned PUShed Into purchasing channels and thereby help to promote greater business busi- busi ZI ness activity |