Profit into Action

When the dollar was devalued last January, a $2,800,000,000 "profit" from gold was left in the U. S. Treasury. Later Congress gave the Secretary of the Treasury $2,000,000,000 of that profit to use as he saw fit in stabilization of dollar exchange. Promptly he told the Press that he would never say a word about the operations of the fund. The "gold increment" of devaluation remained as such on the Treasury's balance sheets until last week, when $2,000,000,000 suddenly dropped out of that figure and a new item cropped up, a liability of $1,800,000,000 to the Exchange Stabilization Fund. The other $200,000,000 had presumably been transferred to the Fund's credit with the New York Federal Reserve Bank. Only inference from the changed bookkeeping was that Secretary Morgenthau was getting ready to put his stabilization fund into action, buying and selling foreign exchange to keep the U. S. dollar at its 59-c--- level. Newshawks rushed to him eagerly. Said he: "I have no comment whatever to make." Then he grinned: "It's lucky I went on the record with respect to that some weeks ago."

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