Henderson Daily Dispatch

NATIONALIZATION
OF GOLD SUPPLIES
OF NATION ASKED
Flexible Range Up to 60 Percent
in New Dollar Value
Requested by the
President
HIGHER LEVEL NOT
DESIRABLE AS YET
Roosevelt Says
He Wants
Government To
Get Any
Dollar Profit
Resulting
from Cutting of Gold Content, and Would Use That
for Foreign Buying
Washington, Jan. 15.--(AP)--President
Roosevelt today asked Congress
to nationalize the country's gold supply,
and to give him authority for a
flexible range up to 60 percent in re-
valuing the dollar.
Under the present law, he is limited
to a 50 percent reduction in any
cut of the gold content of the dollar
he deemed wise.
In his opinion, the President did not
actually devalue the dollar, saying "because
of world uncertainties I do not
believe it desirable in the public interest
that an exact value be now
fixed."
"The President is authorized by present
legislation to fix the lower limit
of permissible revaluation at 50 percent,"
he added. "Careful study leads
me to believe that any revaluation at
more than 60 percent of the present
statutory value would not be in the
public interest. I, therefore, recommend
to the Congress that it fix the
upper limit of permissible revaluation
at 60 percent."
The President said he wanted the
government to get any dollar profit
resulting from cutting the gold content,
and proposed that out of such
profits the government set up a two
billion dollar fund for purchases and
sales of gold in the foreign exchange.

Dollar Plan
Is Presented
In Congress
Arouses Conflicting
Comment in Senate
and House, But Is
Expected To Pass
Washington, Jan. 15.-(AP)- The
Roosevelt fluctuating dollar plan was
put up to Congress today with expectation
of approval.
The President in a message that
aroused conflicting comment in Senate
and House, envisioned a dollar to
range from 50 to 60 percent of the
present gold backing. The value presumably
would be shifted in accordance
with a commodity price pattern
that remains to be disclosed.
Secretary Morgenthau would have
charge of the program if the legislation
is enacted. As a prelude the
Treasury cheapened the dollar by
about two cents by promising to pay,
beginning tomorrow $34.45 an ounce
for newly mined domestic gold, as
compared with the $34.06 R. F. C.
price today.
This brought the theoretical gold
value of the dollar to within the 50-60
cents bracket mentioned by the President.
In his message he also asked Congress
to invest title in the government
to all American monetary gold.
From the over $3,500,000 profits
which would derive from slashing the
gold backing of the currency by 50
percent, a two billion dollar fund was
proposed by the President for Federal
dealings in foreign exchange and
government bonds.
Similar in some respects to the
British equalization fund that dominates
values of the pound, this would
be administered by Morgenthau.
R. F. C. foreign gold purchases to
date have approached $97,000,000.
At the White House the Treasury
secretary refused to explain detail
of what impends to reporters, saying
official explanations were being prepared.
The Treasury also set Wednesday
night as another dead line for return
of gold to the Treasury. Deliveries
of this will be paid for at the mint
price of $20.67, and not at the new
(Continued on Page Four.)
Dollar Plan Is Presented In Congress
(Continued from Page One.)
price named today for newly-mined gold, however.
Gold illegally held would be seized and the owners subject to a penalty equal to twice its value, under the tentative bill submitted to Congress by President Roosevelt to carry out his plan.
INDICATED GOLD VALUE ABOUT ROOSEVELT LIMIT
New York, Jan. 15.-(AP)-The new Treasury gold price of $34.45 an ounce, to be effective tomorrow. will give the dollar an indicated gold value of 60 percent of parity. which is the upper limit of revaluation proposed by President Roosevelt.