Every evening, Wilmington daily commercial., 1918-04-09
S25O,OOO,OOO FOR
MELTING POT, IN
SENATE MEASURE
Would Liberate Idle Silver for
War, Stabilize Price and En-
courage Production.
MADOO FAVORS MEASURE
b >ssocia'ed press % Every Evening

Bz 4ssocfated press 70 Every Evening
Washington. April 9- Melting INTO
bullion of moi more than 250G0000O ,H-
yer dollars now in the treasury for safe
and export ro pav trade balances and
repurcha-e 1f silver 81 81 an ounce. Il
proposed in al administration bill intro
dlced by Senator Pittman as an nner-
gencv var measure Silver certificates
would hc withdrawn from circulation AZ
the dollars are taken from the Treasury
and Federal Reserve bank notes u new
8 and - denominations substituted
IF enacted the measure virtually would
fix a standard price for silver at 81 an
ounce. several cents above the present
market and stabilize the world market
since the United states produces almost
half oi the total. The bill also il intended
TO stimulate silver production, and to use
the Treasury reserve stocks Of that metal.
instead of gold to settle this country
commercial trade balances IN the orient
and elsewhere.
In anticipation Of action by Congress,
Raymond T. Baker, director Of the mint,
has formulated an agreement with SILVER
producers and dealers To sell 70 the govern
ment at the 81 rate.
SILVER NOT LESS rHAS- DOLLAR
The bill would permit the secretary e
the treasury To fix the selling price 81 the
government silver. but 1t Is assumed tins
would be not ess nan 81 India. China
and Japan need silver most -or coinage,
and quantities also might be exported 70
South American countrfe. ana European
neutrals whose trade balances tre against
the United states India requirements
would be negotiated through Great Brit
AIN.
The treasury now holds 4ql.000000
silver dollars, containing aboul $1,000
600 ounces Cf silver In withdrawing
silver certificates based 0n mis- com. af-
for7 probably would BE- made -o -aSe bills
Of denominations Il s. and more leaving
the 81 aud s. hills which now are u
great demand To guard against con
tracing circulation however Senator
Plttman's bill would provide t9r ISSUANCE
II Federal Reserve Bans notes. * which
onlv l16z0.006 are Iu circulation, IN
smaller denominations lan the present s.
minimum
Federal Reserve Bans notes vrluaIy
are the same aS national bank notes. bur
he special notes would nave 3 slightly
different basis, consisting gi Treasury
certificates Of indebtedness or one YEAR
gold notes
Arrangements Voajd be m,ae .oT the
Federal Reserve Board 70 force withdraw 3l
Of these when the silver Is replaced in he
treasury. No more could BE- issued o, any
trne than the face value Of silver ,skeu
from the treasury
Nj spoo APPROVES MEASURE
Secretary McAdoo wrote b Senate.
Pullman supporting the hlI is a Var
measure, although hc suggested there
might be Njdc difference II opinion uu
The best method of replacing oi silver
certificates with other currency
IN this WAY The secretary explained
the large mass o. SILVER which l~ serving
40 useful active purpose. new rsu b,
made available fOr ,lrect war purpose
There is no intention ol making any
ncrmaueut change ln fhc st4tu~ Of ~,
SILVER certincatg> The proposition IS u
brief IL retire silver certificates ro borrow
from he treasury the silver for use for
W1r purposes. and then D, SILVER from
tlme 10 time Ia the future comes on the
market 10 replace rhe silver -u borrow I'd
bl purchase ln the market at the tiXeG
price q 81 per tine ounce and to replace
the borrowed silver bN coming the new
standard silver dollars There IS nl
llmtt IN whIch thu, must hc donc
>o DOLLARS ColNEu -r>,t 1905
~ silver dollars have been come.
since 1901 For hall dollars. quarter,
and dunes the government this wear
needs about 2l,000 600 ounces of silver
Determination on the pM 81 tre,gsur,
officials to urge the fixing Of silver price
resulted from the cuatir HucWahon,
0f thr silver market