RAISING THE MONEY

Nelson Evening Mail, Volume LXIX, 1 February 1936, Page 7

RAISING THE MONEY

3,000,000,000 DOLLARS NEEDED (United Press Association—By Electric Telegraph—Copyright) WASHINGTON, 30tli January. A stormy discussion on means of raising approximately the 3,000,000,000 dollars necessary to meet the cost of the soldiers’ bonus and Agriculture Adjustment Administration payments contracted for farmers had as its feature to-day- a notice by Representative Patman that he is preparing a Bill to have new money issued against the Idle gold and silver reserves held by the Treasury and a demand by- Senator Thomas, noted inflationist, that the President issue that amount of new currency as “taxes, are out of the question.”

Messrs Patman and Thomas’s statements had an immediate effect on the dollar on foreign exchange where it dropped to the lowest figure against (lie franc in almost a year, the latter unit closing at O.GS 1-8 cents and sterling at 5.00 5-S dollars. Mr Morgenthau, Secretary to the Treasury, when apprised of the condition, admitted that the dollar had almost reached the gold export point and stated that the' United States would raise no obstacles against a movement of bullion to Europe. .