VALUATION OF THE DOLLAR

Press, Volume LXXI, Issue 21420, 12 March 1935, Page 11

VALUATION OF THE DOLLAR

L TO USE THE I profit AMERICA'S DEBT aI VICAL" INFLATIONARY | It EFFECT ;1 iisgi' a ~v j 3 March 1L 3 - 20 P- nU ''".nsidered to be the first J c f the "mechanical' 111e ffect of t ' ie decrease in pjctent of the dollar was ' -- ♦he announcement L\, uie 1 "...jjight that 675,000,000 i profit from the dc- -- / J t he dollar will now * U'be used to reduce the There wa? a profit M« j rjoO dollars nom the y*\n, but there ha.: been a ft; allotment of all but j |j dollars to other pur- §? ' c h a.-", f ! r instance, 1 'S dollars to the stabilisaalong with the ex--•estion to concentrate the $ ,j currency in tiie Treasf r e deral reserve system by f<- ; the removal from cirail notes hitherto issued T -_ssal banks will save the nearly 13.500,000 dolinterest charges, and !' 1 ' possible the rKnsion of currency and -sure is considered one ot Important of a financial •-«naken by tne adminisT«jg gross public debt on vtes 28,554.000,000 dollars, •cation of a relatively 'psn o! the gold profit to sent of the national debt ~ its face, b:- considered p_".g cancellation of an by means of tampering currency, which has been if since the gold content j yjar was materially re- j -t s it nevertheless is a can- %. | skis of Reserve Bank -,-er, although it is denied f JlyC; is contemplated any fur- i Planting of the currency, ; :Jby which the 075,000,000 , tt:r.!l be used for the retire|p:the existing national .bank I #-ie issuance by the Federal j f,'bank of gold certificates. | 'ill tum will be used to retire uteonsols and bonds, and under (User cent, gold coverage pro-s-itbe Federal reserve could 17,500.000 dollars in curJicates only too clearly the and even more dangerous 7 possibilities of the new j rent issued by the Under::f the Treasury, Mr John :s significant. "I would ap does not represent in»puts the gold profit to 3 not like the word inflate step makes it possible rre money into use. The $ ■" of the action is to ren 'i'ional debt, and provide 7uniform currency." Jrjt lobbying groups in who had hoped to see fl P 1 " usec ' ' n iJpiCiose inflationary scheme fc "erests, for instance the ■i s Bonus group, to-night exdisappointment at the ' method" of the Trea■■j?' observers are I®;® to wait and see whether Ip.irect utilisation of the Ibe followed by Iff ~- sat ' ons before concur--11" option that the ■ : ;™T methods are conservative. I - j