CONCERTED DRIVE

Northern Advocate, 21 April 1933, Page 5

CONCERTED DRIVE

AIMED AGAINST DOLLAR TJ.S.A. COUNTER MOVEMENT. EMERGENCY PROPOSALS. COXTPOT. OVER INFLATION. (United Press Association —By Electric Telegraph.—Copyright.) (Received 11 a.in.), WASHINGTON, April 20.

The Speaker of the House of TJepvosematives, Mr H. T. Rainey, told the newspaper men that President Roosevelt’s monetary moves wore designed to meet the '‘concerted and planned” campaign by foreign nations to beat down the United .States commercially. “The President’s move is toward bimetallism,” -Mr -Rainey said, “and would place the Executive’ in a posi--1 ion In meet, on their own ground, the nations that depend upon the pound sterling. Unless. these nations accord with ns on some international stabilisation of money they are lost.” Mr Rainey said there had been a. concerted drive by European nations against the American dollar. “They have been attempting to .take all our gold from ns, leave ns stranded, and reduce ns to a fourth or lifth-class power. ’ ’ He called the President’s action “the most statesmanlike move taken by any executive chief in my memory. ’ ’ Senator MeAdoo (Democrat, California) former Secretary to the Treasury, today introduced a bill to authorise the—issuance.. of up to 8,000,000,000 dollars in United States notes to refund the Government’s short-term debts maturing in the next five years. ’ Without Delay. Owing to the rapid rising of the turbulent reaction to the inflationary movement,■’President Roosevelt hastened today to gain control of the upward swing, lost it gets out of bounds. He called in Congressional leaders to work out a constitutional "snag” in his emergency proposals to give him control over inflation.

Intent upon seizing quick authority to direct controlled inflation, President Roosevelt and his economic counsellors collaborated with the Congressional advocates of currency expansion today in drafting legislation intended to be acted upon without delay. The Congressional leaders struggled to overcome consitntional blocks in the proposed legislation, and the predictions came from Capitol Hill that the measure would be ready and introduced late today as an amendment to the Farm Bill in the Senate.

The bill, it is said, would give President Roosevelt authority to issue unlimited new currency as legal tender under the old greenback law, and would also enable the President to reduce the gold content of the dollar by international agreement, or otherwise to overcome constitutional objection.

The latter proposal, it was tentatively agreed, would limit this authority 5 to reduction of the gold content of the dollar by 1"). per cent, the same principle as. was involved in his control oyer, tariff rates, reacting to a skywalr.d. swing in stocks and commodity prices. ■ The Congressional leaders appeared to ibc standing behind the President in his campaign, but quick action is desired to get the situation fully on hand as soon as possible. ' ’ Draft Completed.

Tlio draft of tiio proposed controlled inflation amendment to the Farm Bill was completed by the Democrat leaders late tonight. With provision for authorising new currency up to 3,000,000 dollars, President Roosevelt would have power to direct the issuance of supple-’ moutnry currency.

Other details of the proposal are withheld pending its introduction in the Senate, hut it was also understood to authorise the President to accept up to 1,000,000,000 dollars in silver as part ■payment of war debts and to reduce the gold content of the dollar.

The loaders said that it would not be pressed to a vote today, but would; lie on the table for action on Friday. GERMAN VIEWPOINTS. MAI NTEN’ANCE NEAR PARITY. HOLLAND KEEPS OX STANDARD. (Received 1.30 p.m.) HEREIN, April 20. Financiers associated with the Reichstag consider that the fluctuations of the dollar cannot touch the dollar exchange in the long run. America is the world’s greatest creditor, and the continuous demand for dollars will maintain Die dollar quotations near parity. America’s action was necessary D» prevent irregular withdrawals of gold. It is unlikely that it will affect German currency, which the stocks in foreign currency adequately protect.

However, a lasting depreciation of the dollar will decrease German exports, and possibly will necessitate a moratorium.

A. dispatch from the Hague states that Holland is not likely to abandon the gold standard.

CANADIAN CHANCE. :rcctproctty plans. . (Received 1 p.m.) OTTAWA, April 20. With the exchange stumbling-block largely removed, Mr B. B. Bennett, Prime Minister, is reported to be drafting definite reciprocity proposals

to lie made to America at the .Washington Conference* .• ; The close of the Canadian market on Tuesday brought an - optimistic picture "with rises right down -the., zt line and nothing to discredit. The general opinion in financial and industrial circles '..i? ...that * 'Cana4(£ 'Trill b e the gainer by the United States gold action. " ; Montreal reported wide ’gains in stocks, though ' the , close, found prices below the day’s top, but in. To- ? ronto the general list closed near the dajS? top after the most exciting day* ■ in four years. . • . A Winnipeg message says that, - backed by ' phenomenal sales of Can- ■ adian wheat for export totalling, 4,000,000 bushels in the last two days, wheat futures withstood profit-taking '> throughout the active session, closing at 1:1 to li cents higher, to bring - the total gains in the last two sessions to 2£ cents. The volume of transactions was enormous.