ROOSEVELT’S POLICY

Hokitika Guardian, 24 November 1933, Page 5

ROOSEVELT’S POLICY

BIG OPPOSITION

BY FEDERAL RESERVE BOARD.

tJiiited Press Association—By Electric

Telegraph—Copyright.)

(Received this day at 10.45 a.m.) WASHINGTON, November 23.

The most powerful attack Mr Roosevelt has yet encountered developed early to-day when it was revealed that “the advisory council” of the Federal Reserve Board lias declared opposition to the gold buying policy, and recommended the re-establishment of currency on a gold basis coupled with “safeguards to be agreed upon by international action.”

The council is composed of representatives of bankers, embracing the entile nation from the mid-western agrii cultural section to Wall Street. They have been meeting during the past several days, and adopted the resolution which, without mentioning Mr Sprague’s name, embodies the principle expressed in his resignation. Mr Roosevelt declared: “Unless there i.s monetary stabilisation, it will.be increasingly difficult for the Government to finance its large commitments for reconstruction purposes, and re-finance maturing obligations.” Mr Morgenthau announced that Mr Tom K. Smith, a- St. Louis banker, has been invited to confer with him regarding accepting the position which Mr Sprague vacated. It is assumed he will be in full agreement with Mr Roosevelt’s policy. There was word from Warm Springs that Mr Roosevelt is determined to follow his policy, and developments now indicate, according to observers here, that there will lie a titanic fight on the monetary issue. !

FURTHER OPPOSITION SHOWN,

BY ADVISOR TO ROOSEVELT

(Received this day at 11.15 a.m.) PHILADELPHIA, November 23.

Mr James P. Warburg, who has been regarded as the unofficial eco.nomic advisor to Mr Roosevelt on Wednesday night- expessed reluctant opposition to some of the methods of the President’s monetary policy. “What I reluctantly oppose,” said the New York banker, who was financial adviser to the American delegation to the World Economic Conference, “are some of the methods by which he seeks to attain his goal, some of the misconceptions that seem to becloud his purpose, and the disregard of the accumulated experience of centuries, manifested by all too many of his advisors.” Mr Warburg made his surprise address at the American Academy of Political Science in aligning himself with Mr 0. M. W. Sprague.

At the same meeting, Professor Irving Fisher, of Yale University, said in an address: “The monetary policy of Mr Roosevelt is substantially right.” Mr Warburg expressed doubt that,, as a practical matter, there can be any such thing as a dollar of constant purchasing power, which Mr Roosevelt espoused in his message to the Economic Conference last July, and revealed for the first time that he had resigned from the American delegation after the President’s message had been received in London. He did not let his resignation become known at that time, because he was still hopeful of being able to convince the President that it would be a mistake to continue his policy of monetary uncertainty and experimentation.