Letter on the Stabilization Fund and Fixing the Metallic Content of the Dollar.

My dear Mr. Speaker:

The powers conferred by Section 10 of the Gold Reserve Act of 1934, as amended, dealing with the stabilization fund, and the powers specified in paragraph (b) (2) of Section 43, Title III, of the Act approved May 12, 1933, as amended, relating to the fixing of the metallic content of the dollar, will expire on June 30, 1939.

The existence of these powers has enabled us to safeguard the nation's interest and to carry forward international monetary and economic cooperation. It is obvious, however, that the international monetary and economic situation is still such that it would not be safe to permit such powers to be terminated. I believe the sound and wise policy to pursue under the circumstances is to extend these powers until January 15, 1941.

The Secretary of the Treasury and other representatives of the Treasury Department will be available to discuss with the appropriate committees of Congress the problems relating to such legislation.

Very truly yours,

Hon. Wm. B. Bankhead,

Speaker of the House of Representatives.