REVALUING THE DOLLAR

Evening Star, Issue 21620, 16 January 1934, Page 9

REVALUING THE DOLLAR

PRESIDENT'S MESSAGE TO CONGRESS " FLEXIBLE POWER " ASKED FOR Pres* Association—By Telegraph—Copyright % , ■ WASHINGTON, January 15. (Received January 16, at 12.10 p.m.) After a lengthy dissertation on . the Government’s historic sovereign fight to control the medium or l exchange, with the reiteration of the Administration’s desire to ‘‘ restore a fairer price level with the purpose of arriving eventually, at a ■ less variable ’ purchasing power for the .dollar, ’’ President Roosevelt,-in. his"message to Congress, requested, flexible, power in fixing the dollar value. -He would have Congress limit his power ■ not to go above 60 cents, and under the present law, which embodies the Thomas amendment, he cannot go below 50 cents, thus in effect he would, maintain the ten-point margin for “ bargaining purposes ” in international stabilisation conversations that it is assumed will eventually be undertaken. The momentous question of the issuance of “ greenbacks ” for- 1 fiat money is ignored in the recommendations to Congiess, but in a Press conference the President expressed the opinion that his message was, a powerful argument to Congress against printing press money, but it is understood that he does not completely disfavour the suggestion thpit' a “limited” amount of five and ten-dollar non-interest-carrying bonds ” might be issued to relieve the Government’s financial stringency. If such were issued, the sponsors insist, they would eventually be retired by sound currency and not constitute a permanent addition to the nation’s money.

FAVOURABLE REACTION NEW YORK, January 15. (Received* January 16, at 1.20 p.m.) All the markets soared on the President’s monetary message. Stock Exchange prices were up one to six points in avalanche buying that put the tickers minutes late in recording the prices. All bonds were strong—even Government issues—-observers interpreting the advance as an indication that Wall street was glad that the uncertainty was over. The President went no further than was anticipated. Commodities made sizeable gains. Cotton was up two dollars a bale, and wheat over three cents, a bushel. The price of gold was unchanged today, but to-morrow it will be 34.45d01. per oz, an advance of .89, making the theoretical dollar value 60 per cent. To-day on the open market the value of the dollar was nearer that point, dropping over 2 1-3 at midday trading to 61.40. ,