PROTECTING THE DOLLAR

Evening Star, Issue 21709, 2 May 1934, Page 9

PROTECTING THE DOLLAR

THE STABILISATION FUND TREASURY DEPARTMENT’S POLICY Press Association —By Telegraph—Copyright. WASHINGTON, April 30. In a somewhat ambiguous announcement of its policy to-day, the Treasury Department revealed that a 2,000,000,OOOdol fund had been allocated to protect the value of the dollar abroad. It appears that this is merely the carrying out of th’o idea proposed when the dollar was devaluated on January 31, but not then put into effect. Of the fund 1,800,000,000d0l will come from “ profit ” on gold revaluation and the remainder will merely be placed to the credit of the Federal Reserve, which will handle the operations. It is understood thjit the fiscal authorities have no intention of using the money unless it is necessary to protect the dollar, and they are confident that the establishment of the fund will have the desired effect. It is pointed out that the original fund aimed at keeping the dollar depressed, but ns several times recently it has dropped to parity with gold standard currencies they now wish to prevent undue depreciation. Some observers interpret the creation of the fund as the first move in the establishment olt a permanent monetary policy, although Congress granted the Piesident power for two years to manipulate the dollar.