CONTROLLED INFLATION

Stratford Evening Post, Volume II, Issue 226, 22 April 1933, Page 6

CONTROLLED INFLATION

Mew Currency in U.S.A.

RAPID SWING OF PRICES

Amended Bill in Senate

Press Association.— Copyright

Washington, April 20. upon getting quick authority to direct America's policy of controlled inflation, President Roosevelt and his economic counsellors to-day collaborated with Congressional advocates of currency inflation in drafting the legislation upon which it is proposed to act without delay. The Congressional leaders were consulted in the struggle to overcome the constitutional obstacles to the proposed legislation. It is anticipated that the mc-sure will be ready for introduction late to-cb.y as an amendment to the Bill in the Senate. The Bill will give President Roosevelt authority to issue unlimited, new currency as legal tender under the old Greenback law. It would also enable the President to reduce the gold content of the dollar by international agreement or otherwise. To overcome the constitutional objections to the latter proposal it was tentatively agreed to limit this authority to a reduction of the gold content of the dollar by 50 per cent., the same principle as was involved in the President's control over the tariff rates. Reacting to the upward swing in stocks and commodity prices. Congressional leaders appear to bo standing behind President Roosevelt's campaign. Quick action is desired to get the situation fully in hand as soon as possible. "Foreign Campaign"

The Speaker. Mr. Rainey, told newspapermen to-day that President Roosevelt's monetary moves were designed to meet a "concerted and planned campaign by foreign nations to beat clown the United States commercially." Mr. Rainey said that the President's move was toward bi-rnetallism and would place the executive \ n position to meet the nations that der.i ■" d upon sterling on their own ground

"Unless thosp nations tome with us to some internal on::] stabilisation of money they are lost," he sa ; d. "There has been a concerted drive by European nations against the American dollar. They have been attempting to take al 1 our gold from us and leave us stranded and reduce us to a fourth or fifth-grade Power. The Pre-ident's action is the most statesmanlike move taken by any chief executive in my memory. A .-aft of the proposed cont-olled inflation amendment to the Farm Bill ".'-is complied by !■ s Deniocra-;: leaders later ' -ri * wr i a : •• ■ ■■: i< :■ . authorising rrr— - :;p ■>, Liuo,ooo,ooo dollars. . V • ■■'■ ■"■' ■ juIJ have power to direct u»j issj.a ui ;nc supplementary currency. Other details of the proposal are withheld pending the introduction of the measure in the Senate, but it was also understood to authorise the President to accept up to 100,000,000 dollars in silver as part-payment of the war debts and to reduce the gold content of the dollar. The leaders said it would : + be pressed to . vote to-day but would lie on the table for action to-morrow. Heavy Buying New York reports that heavy buying poured into the stock exchange at the opening, pushing prices of numerous shares one to two dollars higher. Silver soared two to three cents an ounce. Profit-taking in late trading reduced the gains by about a half after the avalanche of early buying had sent prices up one to nine points. Thousands of millions of dollars were added to the quoted values of stocks and staples. British currencies continued to skyrocket, the nominal opening quotation for sterling being 3 dollars 89 cents in United States funds and the Canadian dollar 89} cents. French francs rose approximately one-fifth of a cent to 4.44 cents. Other currencies also rose. By noon British currencies had receded slightly, the pound being quoted at 3 dollars 86 cents, four cents under the day's high level. A Winnipeg message states that wheat futures scored smashing gains of 2} cencs a bushel in a wild opening. Backed by phenomenal sales Canadian wheat for export has totalled 4,000,000 bushels in the last two days. Futures withstood profit-taking throughout an active session, closing at 11 to 1A cents higher to bring the total gains to the last two sessions to 2\ cents. The volume of the transactions was enormous.

Chicago reports that a maximum advance of s:} cents a bushel was scored in wheat futures on the opening. All other grains followed. Enormous sales of wheat by profit-takers caused prices to react somewhat, the initial gains being halved and the market generally coasting along about 2 cents above Wednesday's finish. A Washington message states that Senator McAdoo (Democrat, California) former Secretary of the Treasury, to-day introduced a Bill to authorise an issue up to 8,000,000,000 dollars in United States notes to refund the Government's short-term debts, maturing within the next five years. ,