Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-06-20
AMERICAN MINER
GIVEN HIGH PRICE
Pittman Act Stin Applies to
Home Production
ket Otherwise.

From tse wan Street Journal
In response to requests from silver
dealers the Treasury will modify the
regulations under which it win pur-
chase silver at tho fixed price of 81
an ounce under the T1ttman act.
The new regulations, it is under
stood. allow of the offer of mixed sill
yer to the minis under the PittmaE
act, provided the vendor furnish affi-
davits giving clear aud unecuiyocal
proof of what proportion of the prod
uct is American mined silver and
what proportion represents the reduc-
tlon OF foreign ores. This is expected
10 simplify handling of silver under
the P1ttman act and would result in
the mint paying the vendor two prices
for the silver sold: that is. the mint
would pay 81 an ounce for American
silver and the quoted market price
for the foreign silver.
Up to this time the Treasury issued
regulations directing that the vendor
or silver under the Pittman act should
furnish an affidavit attesting that it
was the product of mines and reduc-
ton works situated in the United
states. supported by similar afTidavits
from both the reduction works and
mining company. Because of these
regulations and the fact that the out
put of most shelters is a mixed prod
uct no tenders of silver have been
made to the government at s. an
ounce, although silver has been quot
ed in the market as low as 81 cents an
ounce; From this low point the price
rallied to 80 cents. and on Tuesday il
declined cents to 81 cents.
Reducing Costs.
In order to facilitate operations and
reduce costs the smelters mix many
cres in the process of reduction, while
under the original regulations of the
Treasury the reduction works would
have to handle American silver by it
SELF. Several weeks ago the Treasury
announced that it was prepared to pur-
chase 207.o00.000 ounces of silver at
81 an ounce under the Pittman act
American Smelling and Refining
company says: The mint officials in
Washington Tuesday concluded with
representatives of the smelters and
ref1ners the method under which
silver produced and reduced in the
United States from ores sold to
smelters will be received by the mint
under the Pittman act at 81 per
ounce, which amount, less an adjust
of 1000 fine as against the COM
mercial 999 fine and the cost of trans
portation to the mint, the two ap-
proximating three-eights of l cent,
will be paid to the miners.
90 SIS Per Ounce for American.
The American miner will, therefore.
at once get for his silver 994s cents
per ounce.
It is understood that under this
arrangement the smelling and re-
fining companies will be enabled to
offer to the government within
few days several million ounces OF
silver purchased by them during the
last four months. Four months has
been agreed upon as being the aver
age time it takes between the receipt
by the smelter of the ore and the
time when the silver is finally re-
fined and ready for the market.
The result of this arrangement will
mean that all silver produced from
American mines since the price fell
below 81 will be reliquidated to the
mine on the basis of 81, with the
above deductions. and that from this
time an all American silver, as fast
as it is produced by the mines, will
be settled for at 99ss cents.
All the advantages of the Pittman
act are thus made to inure to the
benefit Of the American mine and the
American miner. and become at once
available.