Evening star., 1923-08-05
SILVER PRODUCERS OFU.S.
ANDCOVERNMENT AT ODDS
Legal Fight Likely Over Interpretation
of Pittman Act Regulating Pur-
chases of Precious Metal.

of about POO. 500 600 ounces pure sill
in the form of accepted tenders ap-
proXimately that amount of silver.
1t has to all intents and purposes,
and under contract. bought that sill
yer. some of which is still to be deliv-
cred.
There is also involved the question
Of mctallurGical losses. which the sill
Yer producers say amount to 13.000.000
or 10000 900 ounces. but which the
Treasury contends is not to he con-
sidercd under the law.
Senator Pittman is in Nevada.
where he will confer with silver pro-
ducers. and where on September 4
there will be held a conference of the
silver producers of America. Although
called largely to consider the posi-.
bilitics of forming a silver export as
sociation. similar to the Copper Ex-
port Association, the convention will
take UP. ii is known. the fight with
the government over purchase of Pitt
man silver.
Counsel for the silver men are study
ing the possibility of instituting man
damus proceedings against Treasury
officials. There has been some talk
of attempting additional legislation
to carry out what the silver men con-
tend is the intent OF the law.
:. Parker Gilbert, undersecretary of
the Treasury, has carried on a
voluminous correspondence with Sena-
tor Pittman over the matter.
, Summed up in sharp sentences on
both sides. from the roluminous cor
respondence. the conflict, which prom
iseS TO be prolonged, perhaps either
into the courts or the next Congress.
is as follows:
Undersecretary Gilbert: THE Treas
n h.
interests of the people as whole.
and not merely the special interests
of the silver producers. and it would
be manfestly improper for it to
throw an additional burden of $4,000
! 600 or more on the taxpayers of the
country in order to help producers
of silver by making purchases of
silver at the artificial price of 81 per
ounce. 1000 fine. beyond what is need
ed under the act
of silver for subsidiary coinage" it
is stated, means a saving to the peo-
pie of the United States or. in other
words, to the whole body of taXpayers
of over s5,oo0,o00. representing in part
the saving realized through not hav-
ing to purchase over IA 500. 900 ounces
of silver at price averaging about
80 cents an ounce over the regular
market price, and in part saving of
interest resulting from making avail
standard silver dollars. bullion, which
would otherwise be kept as dead
asset in the subsidiary silver bullion
account until such later time as fur
ther silver might be needed for sub
sidiary coinage"
Senator Pittman's Views.
Senator Pittman: THE act au-
thorized the sale by the Treasury De-
partment of such silver dollars to the
director of the mint for subsidiary
: coinage. The sales were complete ed
The act expressly provided how such
silver dollars so broken up and sold
for subsidiary coinage should be re-
placed. namely. by purchase of Amer
lean produced and reduced silver
There is no other way in which such
! silver dollars can be replaced
You seem to desire to construe
the act so that the government may
have won either way. AS long as
silver was above a dollar an ounce
1T was a sale even for period of
three years. and when silver goes
down below a dollar an ounce il is
not a sale. No such position could
be maintained by an individual under
the law. Why should such practices s
be attempted by departments of the
government?
Irrespective of the legal question
involved, 1t must be obvious to the
Treasury Department that it has Vio-
lated the spirit of the law and has
| thereby deceived the producers of
silver in the United States to their
] Iirreparable damage"