The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-10-05
Senator Pittman on the Price of Silver


closely watched by silver producers,
most of whom are apprehensive that
the price will drop to less than 81 per
ounce upon the completion of the pur-
chases authorized by the act Sena-
tor Pittman, however, is not disturbed
lover the situation and as he is high
Authority on silver. his analysis OF
the situation should have great weight.
1t is his opinion that before the gov
lernment purchases are completed, the
price of silver will have advanced
above 81 per ounce and that the gov
eminent purchases will therefore au-
tomatically stop. as naturally in that
situation no silver will be offered at
81 per ounce The silver situation is
discussed by the Nevada senator in a
statement recently printed in the Con-
gressional Record, in which he says;
Importance Of Silver.
1--WE of the silver producing states
have an additional interest in the
preservation of this act. Our mines
could not operate with silver at less
than a dollar an ounce. Our mines
would all be closed down if we could
only receive the present world market
price of silver The killing of this
great industry would mean poverty
and distress in hundreds of localities
Throughout the west and the great
diminution of the commercial power of
the whole country. I am confirmed in
this statement by numerous reports
from silver mine operators throughout
the country.
How Long?
"a question of vital Importance to
those interested in the production OF
silver is the length of time that this
act will be operative, or in other
words how long will the government
continue to pay dollar an ounce Tor
American produced silver?
1.-THE act provides that the govern
ment shall purchase upon presenta-
ton every ounce of American produc-
ed silver and pay therefor 81 until the
silver dollars that were melted up and
sold to India have been replaced in
the treasury from the purchase of
American silver.
Accomplished Facts.
1.-THE government, under the act,
melted up and sold 272,OOO,OOO of sill
yer dollars This is equivalent to
about 2O9,OOO,OOO ounces. The gov
eminent has purchased under the act
for recoinage and replacement of sill
yer $4,000, 600 ounces. Therefore, |
there is remaining S5.OOO,O0O ounces
that must be purchased from Ameri-
can silver at 81 an ounce when pre-
scented to the government. The act
authorizes the sale of S5O,0O0,000 of |
dollars. There are still SO.OOO.OOO OF
dollars the government may sell. If it |
should sell these SO,OO0,O0O, then there |
would be a total of approximately |
145. 600 600 ounces to replace.
"How long will this take? The an
swer depends upon the amount of sill /
yer produced annually in the United
States, and whether it is sold to the
government or elsewhere. In 1920 the
total production of American silver
was 55,OOO,OOO ounces. In 1921 it was
So. 600. 900 ounces. In 1922 it will be
100000 ounces. I am,
of course. using round numbers. So,
if the government continues to pur-
chase American silver under the act
it will probably require about 20
months to replace the silver dollars
sold and a year longer if the
additional SO,OOO,OOO are sold or dis
posed of.
May Continue Indefinitely.
But there are conditions that may
continue this act in effect indefinitely
that is the government may never
a sufficient amount of sill
yer to replace these dollars. in which
ease there would always be fund for
The purchase of American silver if the
market price dropped below 81 an
ounce What are these conditions?
When silver does go above a dollar an
ounce the silver producer does not 5
present his silver to the United States S
government, but sells it to outside q
in the open market. For @
Instance the Pittman act became a q
aw on the 23rd day of April, 1918, 5
nd yet the government purchased no S
liver under the act until June, 1920. v
Why? Because silver during that per- n
Cd of time was selling in the open
market OF the world at above dollar
n ounce. and therefore the American Il
liver producers did not present their o.
liver to the government for purchase i,
nder the act. c.
This leads us to the natural in Il
uiry as to the probability of silver a
ding above a dollar an ounce before Il
he government has purchased suffi- OF
lent silver under the Pittman act p
Popular Belief Wrong. T
This problem is governed by the C;
upply and demand for silver through
ut the world, and the ability of those d;
esiring silver to find the means with al
hitch to purchase it. There is now, st
nd always has been a general i'm T
ression that there is an unlimited 81
uantity of silver in the world ready
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