The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1920-06-17

NNftE DROG III the price Oh silver
continues to be a matter OF
concern to the silver producers
of the west, who until the sud
den cut came had felt secure in the
protection given by the Pittman act
which requires the government to
purchase American silver at the fixed
price of 81 per ounce. The Miner re-
ferred to this provision last week and
stated that it seemed incredible that
American silver could be subjected to
the reduced price in view of plain and
specific provision of the law requir-
ing it's purchase by the secretary of
the treasury to replace the silver dol
lars melted and withdrawn from the
treasury during the war. But most
anything seems possible under the
present administration. 1t now ap-
pears that the secretary of the treas
ury has authorized the purchase of all
silver offered at the minis at 81 per
ounce, but the form of proof that the
silver so offered is the product of
American mines and has been reduced
by American smelters and refneries
is so complicated that American sill
yer producers find it practically i'm
possible to comply with it. Shelter
men and others have protested, but
whether the secretary has simplified
the form of proof is not known.
dispatch from Washington yesterday
quoted the assistant secretary as say
ing that the government is willing
to purchase silver provided the terms
of the Pittman act are complied with"
It is not a question of whether the
is willing" to purchase
silver; it is rather a question of whe
Their the secretary of the treasury is
willing to obey the plain provision of
the law.
A Smelterman's View.
The Boston News Bureau has the
comment on the drop in the
price of silver from James J. Phelan,
director of the United States Smelt-
ing. Refining & Mining company:
lowing to the adverse financial
conditions in Japan, China and India,
these countries, that were ordinarily
large buyers of silver have practical
ly ceased buying for the time being
Under the Pittman act, the United
States is obligated to buy over 2O7.-
900, 900 ounces of silver, and this
should now be operating. but because !
of treasury finances. etc, it would ap-
pear that every obstacle possible is |
being put in the way at Washington |
so that this buying will not be opera
tive at once.
However. the law calls for pur-
chase of this silver and there seems I
to be little doubt in the minds of the
best authorities that it will become /
operative very shortly
American production last year was
only 55,2S5,000 ounces so that here is
an outlet for all we can turn out at
81 an ounce.
present conditions therefore would
appear and are believed to be but tenn
Dorary, and the market should within
a rea sonably short time work back to
81 or better. This is certain to be the
case as regards American produced
silver, and for that period that it will
take American miners to produce
enough silver to fulfill the conditions
If the Pittman act. Apparently on
the basis of present production this
would take several years.
1.-THE pity of the thing is that the
production. or control of production,
being so largely American, the market
should be left to the whims and spec
Native tactics of the English specu-
ator. In this respect it is time for
he American producer and owners OF
silver mines to wake up and command
L better control of the market for
heir goods in the same way that the
copper producers have controlled the
foreign market under the Webb act
Maintain Price at 81.
Further discussing the silver situa-
ion, the News Bureau says: For the
lime being, the silver market has ex-
oerienced full force of selling press
ire from all over the world. There is
no question in minds of bullion deal
srs that later when the treasury is
operating freely under the Pittman
law. silver will be maintain
ID near the dollar mark for some
-ime even If there may be two mar
Sets and two prices. on domestic and
'oreign production"