Further Cheapening of Dollar Planned: New Silver Nationalization Plan First Stepping Stone Washington, Aug. 11.
NELATIONIST elements in congress io 1 and semi-official Government circles to-day started a drive for further cheapening of the American dollar by using the nationalization programme as their first stepping-stone.
The programme which they have outlined covers the following successive steps to be taken to alain controlled inflation of the currency:
Further devaluation of the dollar; Further issuance of Treasury notes if necessary; 8. Appointment of a presidential commission to all phases of the problem and stipulation of the exact point at which the value of the dollar should be fixed. In addition they are seeking the widest possible use of silver under the nationalization proclamation.
In a statemertt clarifying the official programme, Treasury officials announced to-day that only free silver ready held in the Treasury will bbe used for the issuance of currenc; on the basis of full legal value of $1.29 an ounce.
Currency issued against silver acquired by nationalization will be based on a purchase for the present. of 50.01 cents an ounce, at least holds 62,000,000 ounces of free silver Tasmuch og the Treasury now this announcement means that $82,- 000,000" of silver certificates "are being printed against it on the basis of $129 an ounce and will be cir culated immediately, This, admittedly, is mildly inftationary since 62,000,000 "ounces only cost the Treasury the total sum of $46,000,000. The difference is offeialregarded as seigniorage profit The Treasury Department later announced that a major portion, of sliver acquired under the nationaliza~ tion programme will be carried on the Treasury. books as Government
Text read from the printed page and cleaned; old type leaves the occasional error.