The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1922-09-09

W h0k08A taA8 t8W 49,
ator Key Pittman to prepare an ar
ticle disavowing the rumors and set
ting forth the facts concerning pur-
chases of silver by the Government.
This article as carried In the Con-
gressional Record In part follows:
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 q dollar an ounce Our mines
would all be closed down II we could
only receive the present world mar
ket price Of silver. The killing of
this great industry would les pow
erty and distress In hundreds Of To-
calities throughout the west and the
great diminution of the commercial
power Of the whole country. l am
confirmed in this statement by mum
reports from silver mine oper-
ators 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 a dollar an ounce for
American-produced silver?
To Replace Metal Sold
THE Act provides that the Gov
eminent shall purchase upon presen-
tation every ounce of American-pro-
duced silver and pay therefor 81 un-
til 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.
The Government, under the Act,
melted up and sold 272,000.0 0 Of
silver dollars. This is equivalent to
about 20s, 100000 ounces. The Gov
eminent has purchased under the
Act for recoinage and replacement of
silver dollars 124,O0O,OO0 ounces.
Therefore, there is remaining 49,
100000 ounces that must be pur-
chased from American silver produc-
ers at 81 an ounce when presented
to the Government. The Act auth
orizes the sale Of 35O.00O,000 of dol
lars the Government may sell. If
1t should sell these $4,000, 900. then
there would be a total of approx
mately 145, 0OO. 900 ounces to replace.
Will Require Twenty Months
How long will this take? The
answer depends upon the amount of
silver produced annually in the Unit
ed States, and whether 1t Is sold to
the Government or elsewhere. In
1920 the total production of Amer
lean silver was 55,000,000 ounces.
In 1921 1t was 5s,000,0 900 unces. In
1922 1t will be approximately ST.
100000 nee l am. of course,
using round numbers. So, II the Gov
eminent continues to purchase Amer
lean silver under the Act. it will
probably require about 20 months to
replace the silver dollars already sold
and q year longer II the additional
100000 are sold or disposed OF.
But there are conditions that may
continue this Act in effect indefinite
ly; that is, the Government may new
or purchase a sufficient amount of
silver to replace these dollars, in
which case there would always be a
fund for the purchase of American
silver II the market price dropped
below 81 an ounce. What are these
conditions? When silver goes above
a dollar an ounce the silver producer
does not present his silver to the
United States government. but sells
to outside purchasers in the open
market. For instance. the Pittman
Act became a law on the 23rd day of
April. 1918, and yet the Government
purchased no silver 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 a dollar an ounce.
and therefore the American silver
producers did not present their silver
to the Government for purchase un-
der the Act.
Supply Is Limited
his icduS US " tho udtuEoi IN
quiry as to the probability of silver
going above 81 an ounce before the
| Government has purchased sufficient
silver under the Pittman Act.
This problem is governed by the
supply and demand for silver through
out the world, and the ability of
those desiring silver to find the
| with which to purchase It. There is
now. and always has been. a general
impression that there Is an unlimited
quantity Of silver In the world ready
for mining. The fact Is just the con-
trary. Engineers. biologists and
prospectors. backed by unlimited cap
ital. for a great many years have
been scraping the face Of the earth
in search of paying silver mines.
"And yet. Notwithstanding this