MONETARY POLICY

Wairarapa Times-Age, 3 July 1939, Page 5

MONETARY POLICY

PRESIDENT STRIPPED OF POWERS STONEWALL BY SENATE COALITION. EXTRAORDINARY POSITION CREATED. By Telegraph—Press Association —Copyright. WASHINGTON. July 1. ' President Roosevelt, at midnight last night in. the House of Representatives was stripped of his important monetary powers by a Senate coalition of Republicans, advocating a gold dollar, and Conservative Democrats, which successfully stonewalled a Bill to extend these powers. The Bill, ’which was ;illowed to lapse with the close of I lie fiscal year, "was the President’s authority to devalue I lie gold content of I he dollar.

The Treasury’s 2,800,000,000 dollars currency stabilisation fund, which is the heart-of the tripartite monetary agreement with Britain and France, was thus killed, as was the President’s foreign and domestic silver subsidy programmes. An extraordinary situation has been created as a result.

A measure extending Mr Roosevelt’s powers was approved by the House carier in the day by 220 votes to 160, despite Republican obstruction, but it immediately encountered a stubborn filibuster in the Senate. After the defeat the Administration leaders commented tfiat the powers have merely lapsed and can be renewed as soon as an extension of the measure is adopted, regardless of the date, but Mr Roosevelt has been advised otherwise. The obstructionists contend that his powers —killed when the old law expired —were interred when the mid-night zero hour arrived. The Administration leaders in the Senate squirmed helplessly while the Republicans made a running succession of speeches. At 11.30 p.m.. tall, lantern-jawed Senator Tydings, Maryland, whom Mr Roosevelt attempted to purge in last summer’s primary elections, rose to deliver the coup-de-grace. Senator Tydings earlier asked Senator Vandenberg, the organiser of the filibuster, for the privilege of making the last speech before midnight, thus rubbing salt into the President's wounds.

Senator Tydings declared that it was ironic for Congress to be constantly criticising the foreign dictatorships and simultaneously enacting legislation bestowing dictatorial power on the President. “I think the time has come to restore the time-honoured methods of government and have the powers vested in Congress, to remain in Congress,” he said. “Jl' an emergency arises in the future and the President calls it to the attention of Congress the Congress will devalue the dollar.” The obstructionists abandoned the filibuster at 2.38 a.m. and agreed to lake a vote on the Bill at 6 p.m. on Wednesday. The Senate is in bitter disagreement as to whether this later vote if it favoured the Administration, would revive the President's powers. Neither side is attempting to forecast the result of the Senate's votes on the Monetary Bill on Wednesday. The Attorney-General has informed Mr Roosevelt that adoption of the measure will revive his monetary powers. but the Republican leaders contend that new legislation would be necessary. The fiscal year has ended with a

deficit of 3.580.000.000 dollars. The gross National Debit is approximately 40.378.000.000 dollars.