Mr. Henry Morgenthau, Secretary of the Treasury, announces that the Treasury is considering the partial sterilization of any future floods of foreign gold to America, The new policy may take the form of accumulating foreign gold in a general fund or a stabilization fund.
Mr. Morgenthau adds that last Thursday's desterilization of some $1,182,000,000 has emptied the Treasury's old "inactive gold account," which is being abolished—Reuter.
Treasury Policy Changed Washington, Apr. 18.
The Treasury Department today abandoned its deflationary sterilization programme, opening the way for sweeping increases in available credit to support President Roose-volts spending and lending pro gramme designed to break the present business recession.
Announcing the Treasury Department's reversal of policy, Mr. Henry Morgenthau, Secretary of Treasury, said in the future gold would be poured into the nation's credit arteries in accordance with the country's needs.
Similar to the action adopted by the Federal Reserve banks earlier this week, the Treasury Department change of policy is mainly psychological and designed to make cash available cheaply if business needs funds for expansion or replacements following an expected revival in trade resulting from the Government's spending programme.
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