The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-04-09
Quarter of a Billion "Bucks' in
Treasury Now.
Use Bullion To Pay Our Trade
Balances Abroad.
SUBSTITUTE RESERVE NOTES
This Would Fix Standard Price
Silver 81 an Ounce.
jewelers. and Manufacturers
Also i'm Need of Coinage.

Washington, April 9--Melung into
bullion of not more than 100000, 900
silver dollars now in the treasury for
sale and export to pay trade balances
and re-purchase of silver at 81 an
ounce. is proposed in an administra-
ton bill introduced today by Senator
Pittman as an emergency war meas
ure. Silver certificates would be
Withdrawn from circulation as the dol
lars are taken from the treasury and
federal reserve bank notes OF new 81
and 81 denominations substituted
If enacted the measure virtually
would fix standard price for silver
Ct 81 an ounce several cents above
the present market, and stabilize the
whole market, since the United states
produces almost half of the total. Tho
bill also is intended to stimulate silver
production and to use the treasury re-
serve stock of that metal instead Of
gold. to settle this country's CONNER
cial trade balances in the orient and
elsewhere.
Agree With Producers.
In anticipation of action by con-
sress Raymond T. Baker, director of
the mint has formulated an agree
ment with silver producers and deal
ers to sell tic the government at the II
rate. The probable result would 6e
for the government to absorb the
100000 ounces last year Officials
have stated they would make arrange
ments to supply quantities of silver to
jewellers and manufacturers requiring
it.
The bill would permit the secretary
of the treasury TO fix the selling price
of the government silver but 1t Is as
sumed this would not be less than 81
India. China and Japan need silver
most for coinage, and quantities also
i 4 -Tfsslyl
countries and European neutrals
whose trade balances are against the
United States. India's requirements
would be negotiated thru Great Brit
ain
Hold 491 900, 900 Dollars.
The treasury now holds 491, 900 900
silver dollars, containing about S76,-
100000 ounces of silver. In with
drawing silver certificates based on
this coin, effort probably would be
made to take bills of denominations of
IS and more. leaving the 81 and 81
bills which are now in great demand.
To guard against contracting circula-
ton, Senator Pittman's bill would pro-
vide for issuance of federal reserve
bank notes. of which only $11.670, 900
are in circulation in smaller denomina-
lions than the present IS minimum.
Federal reserve bank notes are vir-
tUally the same as national bank notes
but the special notes would have a
slightly different basis. consisting of
treasury certificates of Indebtedness or
one year gold notes. Arrangements
would be made for the federal reserve
board to force withdrawal of these
when the silver is replaced in the
treasury No more could be issued at
any time than the face value of silver
taken from the treasury.
McAdoO Favors II.
Secretary McAdoo wrote to Senator
Pittman supporting the bill as a war
measure, dItho he suggested there
might be a wide difference of opinion
of the best method of replacing OF
silver certificates with other currency
Determination on the part of treas
ury officials to urge the fixing of a
silver price resulted from the erratic
fluctuations of the silver market A
conference of western senators, silver
producers and treasury officials
recently discussed the subject at length
with the idea of 81 an ounce as a fail