The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1922-09-29


Rumors that have become current
tends to stop purchase Of silver under
the Pittman act. and that congress
intends to repeal this law have In
duced Senator Pittman to prepare an
article disavowing the rumors. and
setting forth the facts concerning pur-
chases OF silver by the government.
This article, as carried in the Con-
gressional Record, in part. follows:
I'VE 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 he 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. am con-
firmed in this statement by numerous
reports from silver mine operators
throughout the country.
"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 for
American-produced silver?
''The act provides that the govern
ment shall purchase upon presenta-
Nf ~ ~
duced silver and pay therefor 81 until
the silver dollars that were melted
up and sold to India have been re-
placed in the treasury from the pur-
chase of American silver.
1.-THE government, under the act,
melted up and sold 272,OOO,000 of
silver dollars. This is equivalent to
about 100000 ounces. The gov
eminent has purchased under the act
for recoinage and replacement Of sill
yer dollars 124.O00,O00 ounces.
Therefore, there is remaining 49,
100000 ounces that must be pur-
chased from American silver mine
operators at 81 an ounce when pre-
sented to the government. The act
authorizes the sale of 350,000,000 Of
dollars. There are still 100000 of
dollars the government may sell. If
1t should sell these 100000, then
there would be total of approxim-
ately 145.000,000 ounces to replace.
About Twenty Months
How long will this take? The
answer depends upon the amount of
silver produced annually in the
United States, and whether it is sold
to the government or elsewhere. In
1920 the total production of Amer
lean silver was 100000 ounces. In
1921 it was 100000 ounces. In
1922 it will be approximately 49,
100000 ounces. I am, of course,
using round numbers. So, if the gov
eminent continues to purchase Amer
lean silver under the act, it will prob
ably require about 20 months to re-
place the silver dollars already sold
and year longer if the additional
$8o,000,000 are sold or disposed of.
"But there are conditions that may
continue this act in effect Indefinite
ly; that is, the government may never
purchase sufficient amount of silver
to replace these dollars, in which case
there would always be a fund for the
purchase of American silver if the
market price dropped below 81 an
ounce. What are these conditions?
When silver goes above 81 an ounce
the silver producer does not present
his silver to the United States gov
eminent but sells it to outside pur-
chasers in the open market. For in
stance, the Pittman act became a law
on the I'D day of April, 1918, and
yet the government purchased no sill
yer under the act until June, 1920.
Why? Because silver during that
period of time was selling in the open
market of the world at above 81 an
ounce and therefore the American
silver producers did not present their
silver to the government for purchase
under the act.
This leads US to the natural in
quiry as to the probability of silver
going above 81 an ounce before the
government has purchased sufficient
silver under the Pittman act.
No Unlimited Quantity
This problem is governed by the
supply and demand for silver
throughout the world and the ability
S~ S>~~0S ~oSAAAA6 SAASCA " A4uV Tue
means with which to purchase it.
There is now. and always has been,
q general impression that there is an
unlimited quantity of silver in the
world ready for mining. Engineers,
biologists and prospectors. backed by
unlimited capital, for a great many
years have been scraping the face Of
the earth in search Of paying silver
mines.
"And yet Notwithstanding this
great effort there has been very little
increase in the production of silver
during the last 20 years. For in
stance, the worlds production in 1900
was 173,000,000 ounces, while in
1918, being the latest authentic re-
port. the production was only 1877
100000 ounces. The United States
Is the greatest silver-producing coun-
try in the world, Mexico second and
Canada third. These three countries
produce nearly all the silver in the
world.
LET US see what has been the pro-
dNcf3ON NJ Silvop ~ tho YYni<ol c<nAn.