Evening star., 1923-08-05

TIME silver producers Of the
country and the government
are ION the outs. 1t could
almost he called Il fight. this
difference of opinion over the admin
istration of the Pittman silver act.
And if the silver producers from the
west succeed in their present efforts
TO find some legal basis for a suit
against the Treasury Department
there may be an even livelier tilt at
the bar of justice than has taken
place already in correspondence and
congressional investigation. But the
Treasury now stands pat
1t all happens because the silver
producers are convinced the govern
ment ought to buy from them some
10. 900. 900 to 10000 600 ounces more
of silver at the Pittman silver act
price of 81 an ounce. The Treasury
contents just as earnestly that under
the law it has contracted to buy all
the silver it is forced to buy at the
higher than market price" demand
ed by the Pittman act The market
price of silver now f1uctuates from 81
to 65 cents an ounce.
Variance of View shown.
You are violating the law and we
hope to hale you into court for dis
eliminating against a great industry
in spite of the expressed intent of
Congress-" declare the silver men.
We have bought all the silver we
need and are forced to buy" replies
the Treasury. standing on a decision
by Controller General McCarl; and
furthermore, if you producers. who
already have received bonus of S62,-
100000 above market price for the
you would be simply delivering $1,000
900 more money from the public
treasury to promote the special inter-
ests Of the silver industry"
To this charge of bonus the
producers strenuously object. claim
ing the s5,ooo,Ooo actually belongs to
the silver men under thF Pittman act
The actual transaction by the
Treasury over which the discussion
arises was technical procedure.
claimed by the Treasury to be wholly
within the law. by the producers to
be wholly in violation of the law.
and not at all understood by the aver
age man in the street.
Reams of Testimony Taken.
Reams of testimony over the mat
ter have been taken by the subcom
mittee of the commission of gold and
silver inquiry of the United States
Senate. the subcommittee consisting
of one man, Senator Pittman, demo-
crat. of Nevada, and author of the
Pittman act He is strongly opposed
to the action of the republican admin
istration. which would prevent the
purchase of millions of dollars worth
of silver at 81 an ounce from the
silver producers of the country-of
Nevada.
The Pittman act. approved April %,
1918, provided that the Treasury
could melt silver dollars up to $780,
| 100000 and sell them, provided the
silver was all replaced by purchase
from the mines of the United States
at the dollar price.
This was for the purpose, accord
ing to the language of the act, of
conserving the gold supply. of the
United States; ito permit the settle
ment in silver of trade balances ad-
verse to the United States; to pro-
vide silver for subsidiary coinage and
for commercial use; to assist foreign
governments at war with the enemies
of the United States, and for the
above purposes to stabilize the price
and encourage the production of sill
YER"
Sales Made to Britain.
The Treasury melted up and sold to
the British government for use in
India 259,000,000 silver dollars, to re-
place which it is estimated by the
Treasury it will require the purchase