The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1920-06-12
GOVERNMENT BACKS
DOLLAR SILVER
Treasury to Insist Settlements
By Smelters Shall Be at
Price Paid by Mint

KEY PITTMAN IN RENO GAZETTE
Washington, June s10.-The Uni
ted States mints are not declining to
accept American silver from snelters
or anyone else at one dollar an ounce.
This assertion may be made in reply
to the numerous inquiries made here
regarding the silver situation. About
forty per cent of the smelters' refin-
ing is foreign silver and is inter-
mingled with domestic silver.
TREASURY rs WILLING
The treasury department is willing
to do this IL the legal officers of the
comptroller advises that such trans
actions are legal. In my opinion 1t is
possible for refineries to keep separ-
ate the American silver from foreign
silver. IL this is done the smelters
will have no trouble and the Govern
ment will accept such silver under
the Pittman act and pay dollar an
ounce for 1t.
1t may cost the refineries some
thing to segregate the silver but they
will not hesitate to do it If they can
get a dollar an ounce from the Gov
ernment by such act instead of the
eighty-seven cents an ounce or pos
sibly less IL they do not segregate it.
FULL PRICE FOR MINERS
have been discussing the matter
with treasury officials to-day. The
department will insist, however, that
the smelters settle with miners on the
basis of dollar an ounce for silver
that is sold to the Government; name
ly, American silver. The necessity
for the Government being assured
that silver presented under terms of
the of the Pittman act is American
silver is accentuated by present con-
ditions.
Owing to the condition of exchange
in European and Oriental countries
and the great depreciation in foreign
moneys purchasing power, such coun-
tries as France, China and Japan
have been compelled and are now
melting up their silver coin into bull
lion and using it as purchasing
medium in foreign countries.
GERMANY MELTs COIN
Germany has arleady melted up
and thrown on the market practically
all of her silver coin. 1t is the only
thing these countries have that is
worth anything near par except gold
and they have an insufficient guam
tity of that to secure their paper
money.
India, for the first time in history,
for the same reason is melting up its
silver coin and using bullion with
which to purchase in foreign coun-
tries. This supply will eventually be
absorbed but before that takes place
it may drive silver down to an even
lower price in the general market.
AMERICAN SILVER SAFE
American silver and American
mines alone are safe from the effect |
of this destructive condition. In the |
United States there are two markets |
and two prices in silver. Foreign |
silver IL being sold to the trade to-
day at 81 cents. American silver at
the same time is being sold to the
Government under the Pittman act
for one dollar. This is perfectly fair
to the Government because the Gov
ernment sold the same amount of the
metal for dollar an ounce plus all
costs of the transaction.
The Government loses nothing by
American silver under the |
Pittman act. The market price for |
American silver is one dollar and the
smelters will be compelled to settle
upon such basis for all American sill |
yer purchased by them and resold to |
the Government. Treasury officials |
will insist upon this.