Show TREASURY A AID I 0 QUITS FLAYS GOLD POLICY P Declares Present Money Activities Activities Ac Ac- Are Threat to Federal Credit Credit WARNS OF IN INFLATION F LA TION Says Dollar Depreciation Wont Won't Be Beneficial W WASHINGTON Nov 21 UP UP Dr O. O M M. W. W Sprague in a letter of ot criticism cism of the administrations administration's monetary program am today resigned his position as financial and executive assistant to the secretary of the treasury Sprague said he had hOld reached the conclusion that There is no defense from a drift into unrestrained inflation lion ion other than an aroused and organized organized or or- public opinion Sprague said that the m ions ion's present policy threatens a complete complete com corn breakdown of the credit of ot the government His letter said Some six months ago at your urgent request 1 I le left lef t I London and accepted the post of financial financial financial fi fi- fi- fi and executive assistant to the secretary of the treasury I accepted thIs his positron position because I believed at that tha time ime I in agreement with you on monetary matters to be beable beable beable able to render some service in the in-the the working out of policies desi designed to bring about a tr trade de recovery recovery recovery- In Disagreement Unhappily I now find lind that I am in n such fundamental disagreement with the monetary policies which have been recently adopted that I have decided decided de de- to resign my post in the treas trans ury Sprague was in a jovial mood when he le called newspaper men into his of of- lice ice this afternoon in violation of rules laid aid down by Acting Secretary tary of Treasury forbidding treasury from speaking directly directly di- di with newspaper men Sprague said that he had presented his resignation to President Roosevelt Roosevelt Roosevelt Roose Roose- velt on Thursday but had withheld the he Information until today I am opposed he said further in hIS ils letter of resignation to the present pres pres- ent eat policy of depreciating the dollar through gold purchases purchases' in foreign markets for two reasons I 1 am that this policy Ineffective lJ in lii securing a rise teady-rise in not not not-bC- cause ause of any inability to o the he dollar When a government announces announces an an- I ounces its determination to d preci- preci ate te its own currency it c can n certainly accomplish that result and without I the necessity of acquiring any Olny considerable considerable con con- amounts amounts' o of gold in other countries since no sensible person will desire in such circumstances to toa a acquire more of the currency Cites Reasons But mere depreciation of ot the currency currency currency cur cur- rency in relation to the curren currencies ics of other countries will not bring about a general rise of ot prices in the absence absence ab ab- sence of widespread distrust of the currency at a time when there is a large excess plant capacity and millions mil roil lions of unemployed wage earners uA An advance in prices that has lias any promise of being maintained requires s the thc development of oI conditions that will wUl permit a sustained d demand for lor lormore more labor and more materials with resultant increase in the production In the goods and services and the higher standard of ot living Jiving There is nothing in the depreciation of the dollar to induce this increased demand demand de mand for materials and labor A few prices will rise particularly those of commodities such as cotton which are arc ire exported in large amounts Similarly prices of such imports as rubber and coffee coHee will rise A few other commodities com corn that are not exported but are arc subject to speculative transactions in organized markets may advance advance- in price somewhat but the advance will rest on n an unstable foundation since there is nothing in the depreciation of the dollar to increase domestic con con- Doubtless given time lime a depreciated dollar or a devalued dollar will yield a higher price level But this will only come when the desired trade recovery has been realized Our immediate im ira- mediate concern is to extricate ourselves ourselves ourselves our our- selves from flom the depression rather than with th the course of ot prices after alter the happy event N |