The circle banner. [volume] (Circle, Mont.) 1914-1939, 1922-09-22
PlTTMAM SILVER ACT NOT TO
b REPEALED UNTIL MINT
REPLACES WITHDRAWALS

tends to stop purchase of silver unde
the Pittman act, and that congress
intends to repeal this law have in
duced Senator Pittman to prepare al
article disavowing the rumors, ant
setting forth the facts concerning pur
chases of silver by the government
This article, as carried in the Con
gressional Record, in part, follows:
1--WE of the silver-producing state:
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. 1 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-
ton every ounce of American-pro-
duced silver and pay therefor 81 until
the silver dollars that were melted
up and sold to India have been re-
III IL, hn f1sno fro he
chase of American silver.
1.-THE government, under the act,
melted up and sold 272,000,000 of
silver dollars. This is equivalent to
about 209, 100000 ounces. The gov
eminent has purchased under the act
for recoinage and replacement of sill
yer dollars 124,0O0,000 ounces.
Therefore, there is remaining $751;
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 100000 of
dollars. There are still 100000 of
dollars the government may SELL If |
it should sell these 100000, then |
there would be a total of approxim- |
ately 145, 100000 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 55,000,000 ounces. In
1921 it was 100000 ounces. In
1922 it will be approximately 3d.
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
100000 are sold or disposed of.
But there are conditions that may
continue this act in effect indefinite S
y; that is, the government may never {
purchase sufficient amount of silver Y
o replace these dollars, in which case {
here would always be a fund for the {
purchase of American silver if the i
market price dropped below 81 an {
unce. What are these conditions?
he silver producer does not present
lis silver to the United States gov
rnment but sells it to outside pur- C
hasers in the open market For in s
lance, the Pittman act became a law
N the I'D day of April, 1918, and
ct the government purchased no sill
er under the act until June, 1920. c
Why? Because silver during that T
eriod of time was selling in the open 4
market of the world at above 81 an
unce and therefore the American I
liver producers did not present their u
liver to the government for purchase 6
nder the act.
This leads us to the natural in
uiry as to the probability of silver
DING above 81 an ounce before the 0
overnment has purchased sufficient Il
liver under the Pittman act. )
No Unlimited Quantity :,
This problem is governed by the :
1pply and demand for silver q
throughout the world and the ability II
I those desiring silver to find the o
leans with which to purchase it, n
here is now, and always has been. #
general impression that there is an
nlimited quantity of silver in the c.
orld ready for mining. Engineers,
biologists and prospectors, backed by d
nlimited capital, for a great many =
ears have been scraping the face of :"
le earth in search of paying silver 5,
ines.
''And yet Notwithstanding this Il
-eat effort there has been very little
crease in the production of silver q
lring the last 20 years. For in g
ance, the worlds production in 1900 81
az 173, 100000 ounces, while in p
,18, being the latest authentic re- a
'rt, the production was only 1877 e
10000 ounces. The United States q
the greatest silver-producing coun- o.
y in the world, Mexico second and o
anada third. These three countries u
oduce nearly all the silver in the a
1rld. II
Let US see what has been the pro- 81
Iction of silver in the United States nj
ice 1906. In 1906 the production
IS 100000 ounces. 1t steadily eei
creased until 1916, when it reached II
900, 900 ounces. Since that time tf
has decreased to 100000 ounces &C
1921. m