BEFORE SENATE

Stratford Evening Post, Volume II, Issue 227, 24 April 1933, Page 5

BEFORE SENATE

j/ tt DRASTIC BILL

\ Authority Sought by

Roosevelt EXPANSION OF CREDIT AND CURRENCY Failure of Economic Conference Predicted Press Association —Copyright '¥ Washington, April 22.—The '/ drastic Bill to grant President Roosevelt authority to expand both currency and credit and de■crrase the cmld value of the do!- ■' tar was put before the Senate late r yesterday on beha'f of the Adminy istration. • The inflation amendment to the Farm :Bill as completed by the Democratic leaders would authorise the Treasury to enter into an agreement with the Federal Reserve system for the purchase of 3,000,000,000 dollars in Government obligations in addition to those already held. Thr bonds would be held in the reserve system's portfolios for agreed periods. The debate will be adjourned, if necesrsary, to kill a filibuster amendment to put a check on inflation offered by Senator McAdoo (Democrat). Senator Reed (Republican) said: "Inflation is the process by which Governments throw off responsibility and go on a jamboree." Senator Lewis (Illinois) predicted failure for the economic conference if the -European Powers insisted upon discussing W9r debts before international commercial co-operative steps. Mr. Lewis said he understood Britain and France were contemplating an effort before any concessions were made to the United States. Touching on trade that there should first be an understanding of some form of cancellation or revision of debts. If this were so the proceedings had best end now, for the American people were In no temper for such threats. The congressional fight against Mr. Thomas' inflation amendment has been so further intensified that it appears Mr. | Roosevelt could not halve the inflation if he desired it, and there was no indi- j cation of any such desire to-day. In- j stead of shewing any favour the so- j called hard-money advocated granted a j further concession to the radical infla- | tionists and agreed to an alteration to j allow the President to fix a definite par- | ity for silver and gold in any ratio he j desired, thus virtually assuring the pas- i sage of the amendment. The Democratic leadership of both I Houses is determined on early enact-j ment and holds at least the assurance | 'that such action is necessary to the | President's plans. Friends of Mr. Cordell Hull to-day de- I clared that the long-standing ambition of | the Secretary of State has now been ! fulfilled. He has long held the position ! that the depression was international and j mot national, and therefore must be.) solved through international action. That action he believes is now definitely under way.

The stock market resumed briskly today. The final tone was strong and many j issues were tip one to more than four points. British currencies follow-sd the irregular price trend, the pound closing one cent, higher at 3.81. The Speaker, Mr. Rainey, informed Press representatives to-day that the Administration's proposal to accept 100,000,000 dollars in silver on the war debts from foreign nations would result in placing silver on a sixteen-to-one basis. After rising sharply at opening the pound yesterday reacted sharply to close at 3.76 for cables, nine cents lower than Thursday's close. The Canadian dollar closed 3-8 cents lower at 87 7-8 cents. Profit-taking and a change of feeling regarding the Washington developments were responsible for the reaction. Trading on the stock market was somewhat quieter. The commodity markets became hesitant, though further firmness appeared in copper and sugar. The late tone was heavy. AUSTRALIA WATCHING POSITION Press Association.—Copyright. Sydney, April 23.—The Federal Cabinet has considered briefly the developments of the American proposal to 1 abandon the gold standard' and wi'l keep in close touch with British official information and Mr. MacDonald's conversations with President Roosevelt. Ministers admit that if the American plans prove as drastic as some quarters suggest serious problems may arise, enhancing the importance of Australian representation at the World Economic Conference, where- America's relations with the rest of the world will be finally resolved. POSITION OF U.S.A. OUTLINED

Washington, April 21.—The posi- I tion of the United States in most of the outstanding subjects to be taken up by President Roosevelt and Mr. [ MacDonald is outlined in well-informed I circles as follows: ■ War debts: The administration is defin- j itely committed against cancellation by S the Democratic platform, but is not committed against postponement or re«duction, though such action will require Congressional approval. The Administration has drawn a distinction between nations which met their payments, such as Britain, and those which did not, notably France. Il regards debts as only one factor in the world economic condition. Currency: Stabilisation internationally is regarded as fundamental to the revival of world trade. The United States is ready to join in efforts to establish a revised international standard to which national currencies will be attached at a new parity. Tariffs: The Administration is willing to reduce tariffs on condition that other nations do likewise, and favours the policy of tariff bargaining by mutually advantageous reciprocal agrements. Wheat: An agrement will be sought among other leading wheat producing nations to cut production to fit the world consumption and avoid heavy surpluses, which have beaten down prices. Silver: The Administration is willing to discuss means of improving the price by an international agrement. and would consider bimetallism if all nations adopted it. Disarmament: Heavy expenditures on armies, navies and air forces are regarded as a drag upon the world in its efforts to recover economic equilibrium, and any reasonable movements for re-

| ducing armaments or abolishing those ! designed particularly for aggression will ! be joined. ' World peace: The Administration is I committed by the Democratic platform i to new provisions for the Pact of Paris | to provide for consultation among the | signatories in the event of a threat of | a breach of its pledge against the use !of force in settling international disI pute's. It is carefully watching public ' opinion on this point, however, before | agreeing to such a consultative plan I r>z that which has been proposed by Mr. ; MacDonald at the Geneva arms conference.