Immediate Inflation Not Likely

Manawatu Times, Volume LIV, Issue 7271, 26 September 1933, Page 7

Immediate Inflation Not Likely

United States Plans to Reinforce Credit Structure

PUTTING IDLE MONEY INTO CIRCULATION

United Press Association—By Electric Telegraph—Copyright. Received Monday, 7.5 p.m. WASHINGTON, Sept. 24.

President Roosevelt and the Government’s financial leaders mapped out a programme for credit expansion in a conference at White House that centred on tho release of funds in closed banks. It was emphasised, both by the President and the conferees, that no now moves, other than reinforcing the country’s credit structure, were in contemplation. This is accepted generally as definitely eliminating at this time any inflation of United States currency. It means that the Government is going to use every power to put into circulation money now lying idle in banks’ tills and funds locked up in closed banks. Mr. Roosevelt is primarily interested in co-ordinating all Government financial agencies to assure full support of agriculture and business in his pricelifting recovory programme. Secretary Wallace said in an address to-night that unless world trade was restored, 40,000,000 acres of United States land must bo taken out in cultivation.

“Mr. Roosevelt, Mr. George Peek and all of us in tho Agricultural Adjustment Administration,” he said, “are convinced that this dilemma of bursting warehouses and starving mullitures must bo solved.”