MONETARY DICTATOR

Evening Post, Volume CXV, Issue 94, 22 April 1933, Page 11

MONETARY DICTATOR

POWER TO REVERT TO GOLD

NEW YORK, April 20. The controlled inflation amendment to the Farm Bill represents a compound of many ideas, and contains the germs of many schemes that have beon advanced in and out of Congress, and' by its composite- nature- not only represents all views, but bespeaks tho support of all factions with the possiblo exception of a small minority. Its major import and tho sufficient safety valve are the fact that President Roosevelt is made monetary dictator, with discretion not only to do such exceptional things as, for instance, to bolster up Federal stocks by open market operations, but also to negotiate a wide l'auge of treaties of a political and economic .nature with foreign Governments. Today the Unitot1. States is off the gold standard, but tomorrow the President has power to revert to gold, and similarly with other steps with which the measure empowers him. Mr. Roosevelt, who, as is known, is a "second currency" advocate, is said to be basically opposed to "tinkering" with the currency. Ho does not want monetary inflation. He wishes credit inflation so tha* toe wheels of industry and production tWll start moving on a large scale with the attendant benefits. It is felt that if he finds that the experiments he is now making dp not

produce the desired credit expansion, and at that without injurious effects on the monetary system, he- will quickly abandon them.