The New Zealand Railways Magazine, Volume 8, Issue 3 (July 1, 1933)
Too Many Weapons
Too Many Weapons.
In its earlier legislation Congress gave the President power to reduce the gold content of the dollar by 50 per cent., and to inject into banking three bullion dollars of reserves (with enormous multiple expansion of credit). Either of these powers, if fully enforced, would cause an inflation which, in banking opinion, would lead to a complete flight from the dollar. But these powers, and others, are permissive. Congress trusts the President's discretion. In real truth, Congress threw all kinds of weapons to the President because Congress did not know what to do. Does the President himself know what to do? And if he does not know exactly how the dollar will behave within the United States, is he able to frame an international policy? To that question, some people reply: “Yes, but he will proceed by tariff reduction, rather than by monetary action.” But already the American delegation in London is reported to be split on a Washington suggestion for a mere 10 per cent. duty reduction.