Show I Inflation Plans 7 k- k Of Loom as Issue Foes Expected to Assail 1 Treasury Secretary's Plan to U Use s Gold Profits for Paring New Deal Deficit to i S BT By Associated Press frets WASHINGTON Aug 29 Secretary 29 views that the the cost of the New Deal in Its first 16 months may run as low as Is expected to be a talking point In the fall taU campaigns There appeared no doubt that the figuring the treasury head didIn did didIn didIn In his address last night would be acclaimed by friends and assailed by at least some foes Estimates of New Deal costs by the two camps have bave been billions of dollars dollar apart s statement that the profit proUt the government government govern govern- ment reaped by its gold policy eventually eventually even would be applied to reducing the national debt also aroused much Interest Word from Wall street was vu that this was was regarded as IS re reassuring and likely to bolster the government bond market Observers hold th that lt when the treasury pays out gold certificates s 3 backed by this profit it Jt will mean meana a currency inflation of But made clear that for forthe forthe fortne the present the government would continue to ke keep p the under lock and key So there ther is no saying when the currency will be Issued by Six Billions Secretary said that from March 4 1933 to June de e 30 1934 the gross public debt Increased about Some observers he said have concluded that it also represents the cost of the new deal during that p period pe pa nod dod in so tar far as as' such cost is reflected reflected re re- rc- rc in a growth of the public debt This assumption is easily made but it i ignores nores the important all fact that while w wa we have havo increased d q our r d debt bt w we have also increased sed our ur a. a assets as- as sets many of ot them j Iff realizable form orm By this I 1 mean assets asset which in duo due time the government will turn Into cash ash thereby making them available for reduction of th the na national Io al debt Cites Cite Federal Assets Making Maki g an inventory an of assets for his fils listeners he said that aga against this gross increase we can cart offset either now or ultimately the following follow follow- tag ing ass assets ts 1 An Increase in the treasury's cash balance of 2 The profit of resulting from the reduction in the gold content of the dollar 3 The increase in the net assets of the agencies wholly owned and financed by the government amounting amounting amount amount- ing on June 30 1934 to 1095 1005 Although did not carry car carry ry this exposition to its conclusion it would leave a net deficit of ot Thus on the basis of Mor- Mor theory this sum would be be Continued 1 on g Two ISSUE LOOMS S ON INFLATION Mor Deficit Paring ParingS S by Gold Cold Profit Expected to Rouse Foes Continued tram from Page Pace One the ot the new deal so far as asIt asU asit it U L Is r rejected too In the Increase in debt Used in Stabilization Fund Fond 0 Of Of the which which the government profited when It seized nil aU gold and arid then devalued the dollar dol lar lar has been put aside for lor or a stabilization stabilisation fund und to keep for for- exchange at a leyel consI considered ered suitable The law Jaw says the lir life o of this fund hall shall expire in January 1936 unless President Roosevelt prolongs it another another an an- other year pointed out that the government Is remaining well within the line of expenditures outlined by President Roosevelt except that the unforeseen drouth made an additional addition addition- al III l appropriation of ar gary fary declared that because some of our plans moved Into action more slowly than had nad been anticipated ed Cd the deficit for January 1934 to June was only about three b billion Ion d dollars instead of six Whether we shall actually spend the remaining three billions as well as s the additional funds which the president estimated would result in ina a deficit of two billion dollars In the I fiscal year car ending June 30 1935 will depend upon developments which cannot be foreseen at this time he said Roosevelt Smiles at Talk Of Immediate Inflation HYDE P PARK RK N. N Y Aug 29 IP- IP ff President Roosevelt emphasized today today today to to- day at his regular press conference here that it is only the ultimate Intention intention in In- of the government to use the gold profit from devaluation of the dollar and he laughed away inquiries of inflation by immediate use of this fund The president spoke in response to questions questions' about the speeches last night by Secretary stating stat stat- lag ing the purpose to employ the 2 2 I gold profit eventually for retirement of the public debt Sitting in his small study room at atthe atthe atthe the family Jamn home Mr Roosevelt smiled broadly at the suggestion that this opened the way to inflation by byway byway byway way of an nit additional currency base He called attention to the word ultimately and said that meant a a time pretty far in the future The gold cold profit fund he added is a n nest t tegg egg and would be so o regarded Thomas Sees Further Further Devaluation of Dollar Donar MEDICINE PARK Okla Okia Aug 29 UP The UP-The The federal government will soon take new profits of approximately approximately approximately from further devaluation devaluation devaluation de de- de- de valuation of the gold dollar and silver sil silO ver vcr purchases Senator Elmer Thomas ThomasD D D. Okla Okia said comm commenting upon Secretary address address ad ad- dress last night Senator Thomas Thomis construed the secretary secretary sec see of the treasury's talk as indicative indicative indica indica- tive of the of future monetary monetary mone mone- tary policy of or the national adminis adminis- Before the relief program is completed com corn the government will be forced to devaluate the gold content of the dollar doUar to 50 cents This would result In a profit of almost a billion billion bile bil bil- bil lion dollars he said Thomas said the government would also profit approximately 1000 by buying silver at 50 cents an ounce and issuing dollars doHar at an ounce British Writers See No Inflation in fn Plan i LONDON Aug 29 P Financial W Financial London discussed with interest today the Washington speech last night nieM of Secretary of the Treasury Morgen Morgen- thau and c could uld find no signs of Inflation inflation in In- in details of the address Cabled cabled ca Ca- bled here Financial writers stressed the point that If gold profits are to be used t to write of off Indebtedness that Is the reverse of Inflation Paris Fears Further Further- Slash Dollar Drops PARIS Aug ug 29 Frances France's PJ C Frances France's fear of a S kent 50 dollar grew today following following following fol fol- fol- fol lowing the thc speech of Henry Morgen Morgen- thau American secretary of the treasury which was nervously Interpreted interpreted interpreted inter inter- here as forecasting further in in- nation The dollar weakened here but a major part of pf the g gloom oom was caused by belief that the pound was likely to follow New Deals Deal's Deficit Nearly Five Billions I WASHINGTON Aug ug 29 UP UP- UP Total of money spent by the ROOsevelt Roosevelt Roosevelt Roose ROOse- velt administration in the 16 months o June 30 1934 amounted to treasury figures showed to to- day Offsetting these expenditures was wasa a government income in this period from Tom all aU sources amounting to leav leaving ng a deficit for lor the period period pe pe- pe- pe nod of f Capital Sets Inflation I Limit at WASHINGTON Aug 29 a Eventual maximum inflation pos- pos of und under r the present financial structure of ot the gov- gov were counted In capital cirdes cir cir- les cles des today following Secretary Nor Mor- speech of last night Should such a policy be applied to the he treasury's silver program as well whereby its would l likewise like like- k wise vise be applied to the national debt then hen an additional would be e the maximum Inflationary This figure however could be reached cached only if the price of silver purchased under the silver purchase c act ct remained at 50 cents an ounce a possibility considered remote in vI view w wot ot of f the fact that it is officially estimated estimated esti esti- mated purchases under the act will total otal approximately ounces Should it remain at 50 cents however howver how how- ever ver the treasury's would how I be x 79 cents an ounce Dickinson Assails New Yew Deal for Farmers ROCKFORD Ill m Aug 29 P Sentor Sen- Sen titor ator tor L L. J. J Dickinson of or Iowa a memer mem- mem ber er of the Republican senatorial cam cam- committee attacked the new deal cal in general and th the agricultural administration in particular toda today He spoke at the Trask bridge picnic at al t a site 11 miles mUes from Irom Rockford The senator termed the A AA A A allotment al ale plans the dreams of Impractical Im- Im practical theorists and qu questioned the he constitutionality of the pr processing tax ax |