Arizona republican., 1918-04-10
MEASURE WOULD FIX PRICE FUR SILVER BULLION
Senator Pittman Presents Administration War Bill
 Which Would Be Vitally| Interesting to Miners
[Renubllean A. ?. Leased Wirel


 WASHINGTON, April 9.-Melting into bullion of not more than 25ooOo'- 900 silver dollars now in the treasury for sale and export to pay trade bal ances and re- purchase of silver at Sl an ounce, is proposed in an admins tration bill introduced today by Sen ator Pittman as an emergency war measure. Silver certificates would be withdrawn from circulation as the dol lars are taken from the treasury and federal reserve bank notes of new $1 and g. denominations sustituted. -asmeas-g R?tohr-hol .Allrh.fissthe
 Would Fix Silver Price
 If enacted, the measure virtually would fix a standard price for silver at S1 an ounce, several cents above ;he present market and stabilize the world market. since the United States pro- duces almost half of the total. The bill also is intended to stimulate silver production, and to use the treasurys reserve stock of that metal, instead of gold, to settle this country's commer- cial trade balances in the Orient and elsewhere.
 Government May Buy All
 In anticipation of action of congress Raymond T. Baker, director of the mint, has formulated an agreement with silver producers and dealers to sell to the government at the $1 rate. The probable result would be for the government to absorb the country's en- tire output, about 74,000, 900 ounces last year. Officials have stated they would make arrangements to supply quanti- ties of silver to jewellers and manufac- turors requiring it.
 Orient Demands Metal
 The bill would permit the secretary of the treasury to fix the selling price fthe governments silver. but it is as- sumed this would be not less than $1. India, China and Japan need silver most for coinage. and quantities also might be exported to South American countries and European neutrals whose trade balances are against the United States. lndia's requirements would be negotiated through Great Britain.
 Small Bills In Demand
 The treasury now holds 491 900 900 silver dollars, containing about 376,- 000, 900 unces of silver. In withdrawing silver certificates based on this coin, efrfort probably would be made to take nlllS or Ot0O1nlDallOHS Ol 20 anu lliOl Si eaving the $t and & bills which are now in great demand. To guard against contracting circulation. however. Sen ltor Pittman's bill would provide for ssuance of federal reserve bank notes # which only $11,67O, 900 are in circu- ation. in smaller denominations thar he present S5 minimum.
 Federal Reserve Notes
 Federal reserve bank notes arc vir- ually the same as national bank notes put the special notes would have q slightly different basis, consisting ot treasury certificates of indebtedness ol )ne year gold notes. Arrangement: Tould be made for the federal reserve board to force withdrawal of thes, when the silver is replaced in th' treasury. No more could be issued a any time than the face value of silve alSen from the treasury.
 Secretary McAdoo wrote to Senate oittman supporting the bill as a wa measure although he suggested ther night be a wide difference of opinion )n the best method of replacing of sil Ter certificates with other currency.