Stabilization of the Dollar

September 5, 1933

Report Outline
Price Raising Program of Roosevelt Administration
Stabilization of Purchasing Power of Dollar
Stabilization of Exchange Value of the Dollar
Special Focus

Price Raising Program of Roosevelt Administration

Under present conditions, with the United States off the gold standard both internally and externally, “stabilization of the dollar” has two aspects: (1) Stabilization of the purchasing power of the dollar in the domestic market, and (2) stabilization of the exchange value of the dollar in terms of foreign currencies. Ultimately the administration at Washington will give attention to both aspects of the problem, but for the present its effort is being directed principally to a restoration of the 1926 level of commodity prices in the United States as a condition precedent to stabilization.

President Roosevelt said in his radio address of May 7, 1933:

The administration has the definite objective of raising commodity prices to such an extent that those who have borrowed money will, on the average, he able to repay that money in the same kind of dollars which they borrowed. In other words, we seek to correct a wrong and not to create a wrong in the opposite direction. That is why powers are being given to the administration to provide, if necessary, for an enlargement of credit, in order to correct the existing wrong. These powers will be used when, as, and if it may be necessary to accomplish the purpose.

ISSUE TRACKER for Related Reports
U.S. Dollar and Inflation
Oct. 2008  The Troubled Dollar
Feb. 13, 1998  Deflation Fears
Mar. 13, 1987  Dollar Diplomacy
Oct. 14, 1983  Strong Dollar's Return
Jul. 11, 1980  Coping with Inflation
May 16, 1980  Measuring Inflation
Dec. 07, 1979  Federal Reserve's Inflation Fight
Jun. 09, 1978  Dollar Problems Abroad
Sep. 20, 1974  Inflation and Job Security
Feb. 26, 1969  Money Supply in Inflation
Feb. 14, 1968  Gold Policies and Production
Dec. 15, 1965  Anti-Inflation Policies in America and Britain
Mar. 15, 1965  World Monetary Reform
Dec. 02, 1964  Silver and the Coin Shortage
Oct. 17, 1962  Gold Stock and the Balance of Payments
Dec. 15, 1960  Gold and the Dollar
Oct. 10, 1956  Old-Age Annuities in Time of Inflation
Jan. 17, 1951  Credit Control in Inflation
Aug. 10, 1949  Dollar Shortage
Oct. 04, 1943  Stabilization of Exchanges
Jan. 21, 1941  Safeguards Against Monetary Inflation
Mar. 25, 1940  United States Gold in International Relations
Dec. 14, 1937  Four Years of the Silver Program
Oct. 04, 1934  Inflation in Europe and the United States
Jan. 30, 1934  Dollar Depreciation and Devaluation
Sep. 05, 1933  Stabilization of the Dollar
May 29, 1933  Invalidation of the Gold Clause
Mar. 15, 1933  Inflation of the Currency
Oct. 25, 1924  Bank Rate and Credit Control Federal Reserve Policies and the Defaltion Issue
BROWSE RELATED TOPICS:
Currency
Economic Crises
Inflation