Pitting U.S. Against Axis; Greater Aid

Northern Advocate, 3 January 1941, Page 3

Pitting U.S. Against Axis; Greater Aid

WASHINGTON, January 1. President Roosevelt is preparing a message to Congress definitely pitting the United States against the aims of ihe Axis and expanding on the necessity of aid to Britain. Mr. Roosevelt will appear before Congress personally on January 6. It is expected that he will outline (he new loan or lease plan, under which the United States will help Britain, Greece and China. Changes in Policies. The Federal Reserve Board, in a special report to Congress, the first in its history, has asked for a drastic increase in its monetary powers at the expense of the treasury and urged that the President’s power to devalue the dollar be allowed to expire, in June.

The report stated that broad changes in fiscal policies, monetary and t machinery, are needed, .because, in view of defence spending, it may be necessary to take steps “to prevent inflationary tendencies attributable to defects in the machinery of credit control.” Repeal Recommendation. The board recommended in addition: The immediate repeal of the treasury’s power to issue silver certificates against the seigniorage of silver (the difference between the purchase price of 77 cents an ounce and the established value of 1 dollar 29 cents, which amounted to 1,500,000,000 dollars on previous purchases). Repeal of the treasury’s power to issue currency against foreign silver. Use of the treasury's stabilisation fund, heretofore reserved for stabilising the dollar in relation) to foreign currencies, to absorb and control the excess reserves of United States banks.