AMERICA’S ACTION

Waikato Times, Volume 113, Issue 18927, 22 April 1933, Page 5

AMERICA’S ACTION

MOVED FROM GOLD.

TO SAVE THE DOLLAR. ASTONISHMENT IN BRITAIN. APPREHENSION IN FRANCE. The announcement that the United States had moved from the gold basis has caused astonishment In Britain and apprehension In France. British bankers do not consider there was Justification for the move, which Is -regarded In America as having been taken to proteot the currency against an antl-dollar drive. QUICK ACTION TAKEN. TO CONTROL INFLATION. United Press Assn. —Elec. Tel. Copyright. " WASHINGTON, April 20. Intent upon getting quick authority tc direct, controlled inflation, Mr Roosevelt and his economic counsellors to-day collaborated with the Congressional advocates of currency inflation in drafting legislation upon whioh it is proposed to act without delay.

The Congressional leaders were consulted in the struggle to overcome ■constitutional obstacles to the proposed legislation. It is anticipated that the measure will ‘be ready for Introduction late today, as an amendment to the Farm Bill in the Senate.

The bill would give Mr Roosevelt authority to issue unlimited new currency as legal tender under the old greenback law, and would also enable the President to reduce the gold content of the dollar, by international agreement or otherwise. To overcome 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 Involved in his control over the tariff rates, reacting to the skyward swing in stooks and commodity prices. The Congressional leaders appear to be standing behind Mr Roosevelt’s campaign. Quick action is desired to get the situation fully in band as soon as possible. The Draft Prepared.

The draft of the proposed amendment to the Farming BUI Control Inflation was completed toy the Democratic leaders late to-day.

With the provision for authorising new currency up to 3,000,000,000 dollars the President would have power to direct the issue of the supplemental currency. Other details of the proposal arc withheld pending the introduction of the measure in the Senate, hut it was understood to authorise the President to accept up to 100,000,000 dollars in silver as part payment of war debts and lo reduce the gold confont of the -dollar. The leaders said the hill would not toe pressed 'to a vote to-day, tout it will toe on the table for action to-morrow.

DRIVE AGAINST THE DOLLAR. MEETING PLANNED CAMPAIGN. STABILISATION OF CURRENCY. United Press Assn. —Elec. Tel. Copyright. WASHINGTON, April 20. The Speaker of the House of Representatives, Mr Rainey, told newspapermen to-day that Mr Roosevelt’s monetary moves were designed to meet "the concerted and planned campaign by foreign nations to beat down the United States commercially.” Mr Rainey said the President’s move was toward bimetallism, and would plaoe the executive In a position to meet the nations that depend the pound sterling on their own ground.

"Unless those nations come with us to some international stabilisation of money they are lost,” he said. "There lias been a concerted drive by Hie European nations against the American dollar. They have been attempting to take all our gold from us, leave us stranded, and reduce us to a fourth or fifth-class power. The President’s action is the most statesmanlike move taken by any chief executive in my memory." DTISEUbL

THE VILLAIN OF THE PIECE. AMERICA’S JUDGMENT OF BRITAIN ' AN INTERNATIONAL PROBLEM. United Press Assn. —Elec. Te). Copyright. LONDON, April 20. The Evening Standard’s financial writer says tho significance of the American decision on the eve of Mr Ramsay MacDonald’s arrival cannot he exaggerated. Britain with her depreciated currency and exchange equalisation fund is regarded by tho United States as the villain of the piece.

The Daily Herald says America’s move demands international action to provide for world Inflation, not inflation by one or two countries, and thus increase tlie purchasing power of tho whole world.