The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-11-09
GOVERNMENT CREDIT TO
PRODUCERS OF SILVER
ASK ASSISTANCE SIMILAR TO
THAT NOW GIVEN TO AGRI-
CULTURAL INTERESTS.

IL. ~ Lawrie, managing director OF
the American Gold and Silver insu-
, tute. has addressed a letter to the
house committee on banking and cur
j rency. in which he suggests that the
, government aid the silver miners in
a manner similar to that provided
farmers under the federal loan system
and points out what be believes would
be the far reaching advantages that
would be gained. Mr.. Lawrie says in
part.
Pittman Act Purchases.
The extension of the federal farm
loan system to include producers of
silver probably will be urged by the
American Gold and Silver institute be-
fore the next meeting of the congress
sional committee on banking and cur
rency. The arguments in favor OF the
plan are given in a recent letter by
H. n. Lawrie, managing director OF
the institute, to Congressman McFad-
den. Excerpts from his letter follows:
IAN estimate made by the institute
indicates that the 2OS,0O0 600 ounces of
silver which was sold to Great Britain
for delivery in India during the war
period will have been replaced by the
mint through the purchase of domes-
tically produced silver by about No
vember. 1923. When these purchases
by the mint expire the domestic pro-
duction of new silver will be forced to
compete in the international market.
Though the international price of sill
yer has been recently in the neighbor-
hood of zoe per ounce, it is quite
evident that when our annual produc-
ton. in excess OF 5O,OOO.OOO o., is
thrown upon the market it will have
a depressing effect upon the price.
Producers to Organize.
Producers of silver are now giving
consideration to the organization of
anan American silver export associa-
ton to provide for an orderly market
ing of their product when open market
conditions again prevail They are now
forced to almost Immediately liquidate
their product in order to meet their
operating costs. Under such n sys-
tenn the buyer of silver has every ad-
vantage in regulating the price.
"tI is estimated that 80 per cent of
the silver production of the world is
controlled by American capital in
vested largely in the United tSates,
Canada, Mexico, and South America.
The chief buyers of silver are in
Europe and in the orient, where prac-
tically no silver is produced The
buyers substantially dictate the ex-
change value of silver by manipula-
ton. The buying season in the orient
is most active between September and
May, and during the remainder of the
year the market is less active. AL
though the monthly production of sill
yer is fairly uniform the marketing
conditions are as seasonal as those
governing the marketing of wheat
Improve Silver Market.
"The extension of credit by the war
finance corporation to wheat growers
provided, at a critical moment. the
means for a more orderly marketing
nf that product, and ] understand that
it is now proposed. in n bill before
the banking and currency committee,
TO expand the credit facilities Of the
federal farm loan system to include
The extension of credit, based upon
agricultural products at low govern
nent rates of interest. The silver pro-
iucer is more dependent upon the
oreign market than the wheat grow
,r and he should be accorded the same
preferred credit facilities by the gov
.rnment for the marketing of silver as
he producer of agricultural products
Jpon the low cost of government
.redit extended the producer Of silver
depends the success of any organized
ffort to stabilize the exchange value
" silver at satisfactory level.
World Shortage of Silver.
There is a shortage of newly pro-
Iuced silver to satisfy normal de-
hands while in the case of some agri-
cultural products there frequently Oc-
urs an overproductiOn and a keen
with growers in foreign
ountries For these reasons silver is
commodity which should be regard
d as a preferred credit risk upon
which the extension OF government
redit on even more favorable terms
han those proposed for agricultural
roducts may properly be based
1T should also be pointed out that a
ow exchange value for silver means
low Indian and Chinese purchasing
over in our market The English
of cotton, for instance,
an not sell as much goods to India
nd China when the exchange value
f silver is low as when it is high, and.
cotton growers of this
ountry can not sell as much raw cot
on to English manufacturers. When
he exchange value of silver is low it
nables all countries to purchase at
sss cost the wheat grown in India,
hereby reducing the demand for and