AMERICAN CURRENCY

Otago Daily Times, Issue 22063, 20 September 1933, Page 7

AMERICAN CURRENCY

QUESTION OF INFLATION THE PRESIDENT SILENT (United Press Association.) (By Electric Telegraph—Copyright.) WASHINGTON, September 18. President Roosevelt placed another 150,000,000 dollars behind the United States Credit expansion programme today as southern* Congressional spokesmen rallied for straight-out currency inflation. The new funds are to assist in' the immediate refinancing of farm mortgages held by the banks, whose operations have been restricted by heavy holdings of such paper. Mr J. H. Jones (chairman of the Reconstruction Finance Corporation) announced the plan as a drive for currency inflation. President Roosevelt, to whom inflation requests have been carried by a number of party leaders recently, was silent about any plans that he might have on the subject. Senator Thomas announced that he had received over 100 telegrams from members of Congress in response to his query. Only 5 per cent, opposed inflation. “At this rate,” he said, “ the indications are that members of Congress are overwhelmingly in favour of inflation as a means of raising the price of farm products. The recent advance in prices of the things that the farmers have to buy are almost 42 per cent, greater than the prices of things they have to sell.” Mr Wanamaker (president of the American Cotton Association) asked the cotton fanners to-day to atop ginning and the sale of cotton until they receive at. least 15 cents per pound for short staple middling grades, and advocated the immediate inflation of the currency.