Show SOLON URGES FREE COINAGE FOR SILVER Wheeler Says Debt tion Threatens Unless ss V Money Units G Gain Cain in ASKS THAWING OF CREDIT Unlimited Minting of White Metal Seen as Solution B By Associated Press WASHINGTON March 30 30 Repudiation of or debt is threatened Senator Wheeler D D. Mont told the senate agriculture committee e Friday unless unless there Is an increase in circulation of monetary units or thawing of ot credit credi During testimony on the Dies silver silo sil sil- sil vcr ver b bill U he urged opening the mints mint to the free and unlimited coinage of silver on a ratio to tg be established by bylaw bylaw bylaw law as a solution of the Th senator and E. E A. A were r repeatedly at odds on the use of silver Mr iser r director of research and statistics for the federal fed fed- eral c reserve board continued his dis discussion dis- dis of the monetary system Sena Senator Sen a ator tor Wheeler said aid the trouble with the monetary system in tim times s o of depressIon depression de de- de- de was that bank credits ti tighten and when prices increase there is a 1 flow of credit In Panics i When w we are in a panic state tate is the bank credits should expand he hes d. d I Frank former president of the National City bank 0 of New NewYork NewYork York told the committee the depression depres depres- sio sion was ra conri connected ed I with ith so something et quite wron wrong v the banking z tem tern He d exchange o ot surplus surplus sur sur- plus agriculture products for silver as set forth in the Dies bill might DU lC handled by the contemplated bank oi of foreign relations rather than the ex ex- officio board of cabinet members pr provided provided pro pro- vided in the bill 1 He urged segregation o of communal banking and banks for capital purposes pur pur- poses Effect on Prices Seen SeenI SeenI I I I 1 believe e over over a long Jong period pe the gold content of oC the dollar will effect prices on an approximate ratio with the amount of gold he said Mr said aid the introduction of silver must be considered on a basis basu of oC whether it is a method o of redemption tion or to be bl used as money He said so far as silver would expand ex cx- the currency he believed it would raise prices In this he was in disagreement with Mr I China Would Get Gel Less Lus Mr ser claimed an increase increase in in- crease in silver would not increase China trade because China imports silver and exports export goods He said ald China would have to pay more for silver and would receive less for fol her exports He admitted tinder under questioning by Senator Wheeler that China manufacturers have had a boom under low I silver prices and that a rise in m silver prices would cause a decrease in China manufacturing I Urges Purchase Plan nan I Mr said he believed re- re o of silver would be approached approached ap approached in steps probably through a purchase plan I IA A silver purchase bill is sponsored by Senator Wheeler m in the senate and Representative Fiesinger r in the hous house M Mr said he believed I Continued on ge e Two Tw 1 I WHEELER URGES SILVER COIN COINAGE AGE Debt Repudiation Threatens Unless Money Units Gain Solon Says Continued from Pan One the United States State could stabilize silver silo sil sil- sil ver yer through a permanent plan but not through a temporary purchase program Mr said there was no hope of reestablishing the gold goldstand stand standard ard with gold concentrated as it is 15 s now Mr said a favorable distribution was necessary to a favorable favor avor able trade balance and with a favorable favorable favor favor- able trade balance the standard could be maintained Senator Smith said extension of credit has plunged us into ever every recurring recurring re panic and we must most establish a currency responsive to the increase and decrease in wealth and not to the manipulations of a few in control of the monetary base and I beli this believe congress w will do it Money Experts Study Gold Bloc Breakdown NEW YORK March 3 30 With JP-With With signs of a possible breakdown of the gold bloc multiplying monetary experts ex ex- ex perth are trying to calculate probable repercussions on the rest of the world Most informed circles in Wall street are Inclined to the opinion that abandonment abandonment aban aban- of the old fashioned gold standard by France and her financial satellites might be momentarily disturbing disturbing dis dis- here but doubt that it would have a deflationary effect upon Amerlean Amer Amer- lean ican can price levels It is pointed out that American price levels have given decisive Indications Indi of oC sensitiveness to the ratio of the he dollar with the pound sterling and md the sterling group of currencies but ut little if any is seen between French Trench price levels and ours While a sharp drop in the pound sterling might tend to de depress ress American Ameri Amen can price levels owing to the Importance tance ance of ot the sterling bloc of ot currencies curren curren- cies des in world trade some economists are jre inclined to the view that a drop I in the franc might be almost Ignored A drop In the gold bloc currencies would of course tend to remove the advantage which American exporters have had In selling their goo goods in those countries since the dollar was devalued and to that thai extent might be considered deflationary any |