Evening star., 1933-12-22
SILVER PLAN SEEN
AS INITIATION BAR
Presidents Action Regarded
as ForestaIIing Bi-MetaIIic
Money Policy.
Continued From First Page.)

tCOnIlnueQ fTOm flTSG rd6cJ
legislation will depend upon the State
of the country; upon the return Of busi-
ness and employment and the ability OF
the Government to meet its obligations.
If under the Presidents present gold
and silver programs business and en-
ployment increases and revenue flows
into the Federal Treasury, the demand
for free silver and a bi-metalic system
with a fixed ratio between gold and
silver, is not likely to be pressed SO ac-
lively. If these gold and silver pro-
grams are not accompanied by a return
of business and prosperity then there
will be demand for something else"
The purchase of 24,0Oo,oOO ounces
of silver annually for the next four
years from the American mines at a
net price of 645 cents an ounce, GER
tainly will prove benefit to the silver
miners. 1t will be. in effect. a bonus
to them. The statutory price of sill
yer, which Is $i29 an ounce, does not
change. The miners bring their new
silver to the mints and receive $1.29
an ounce, but the Government pays icr
only half of the bullion and holds the
rest as "seignorage." Seignorage is
the charge or toll (above braSsage) de-
Quoted from bullion brought to mint
to be coined and retained by the Gov
ernment The effect is to give the
miners 64.5 cents an ounce for their
silver, which is about 81 cents above
the present market price for the COM
modify
Senator Wheeler's contention is that
silver is still left as wheat, cotton or
any other commodity, whose value the
Government is seeking to stabilize. II
the United States should adopt BIZ
metallic monetary system and other ma
tions should follow suit, then, indeed,
silver would be stabilized as money"
This, he contends, would add very
greatly 10 the trade OF the United States
with other nations, particularly with
the countries which rely upon silver as
their standard money, the Orient, Mexi-
co, etc.
Could Force Others.
"If the United States adopted BIZ
metalhsm," Senator Wheeler predicted,
Great Britain would have to follow
suit"
Whether the fixing of the price of
silver in this country at 645 cents an
ounce will increase materially the price
in the world market remains to be seen.
II 1t does not, then. 1t is feared the
hoped for extension of trade of America
with the silver nations is not likely
TO follow.
The additional coinage of silver under
the Presidents proclamation is a de-
cided help in the opinion of Senator
Hayden Of Arizona. He pointed out
that to the extent of this increased
coinage In America, and to the extent
that silver goes into the coinage of the
other nations included in the London
agreement, so much will the use Of
silver as currency be increased.
Hayden Praises Pittman.
Senator Hayden paid high tribute to
Senator Pittnlan OF Nevada for his work
as a delegate to the London Economic
Conference resulting in the interna-
tional agreement regarding silver.
Senator Pittman Is greatly to be con-
graduated" he said, this Is the first
time the nations of the world have
agreed to act in concert on silver, and
in a manner favorable to silver. Silver
has always been treated as the step
child by the nations, each Of which has
struck a blow at silver when it felt
that such a blow was to its own ad
vantage.
"The action of the President un-
doubtedly will enhance the value of
silver in the world market, and will
thus tend to increase our trade with
the silver nations 1t is quite clear that
If the Mexican silver dollar goes up in
value, then the Mexicans can purchase
more American goods. The same is true
With respect to the Chinese and other
nations which use silver as money"
Metal Long Monetised.
Senator Hayden said that for CEN
turies the nations used both gold and
silver as money. The British, after the
Napoleonic wars, decided 1t was to the
interest to adopt a gold standard. and
in the first half of the last century,
did so. Other nations clung to the BIZ
metallic standard until after the Franco
Prussian wa-, when Germany de-
manded and took a billion dollars in
gold from France, and decided to kick
silver overheard. The other nations
including the United States, abandoned
bi-metalism and adopted the gold
standard.
Senator Hayden pointed out that If
the net price of 64.5 cents an ounce
did not bring the marekt value of silver
high enough, he was at liberty to fix a
still higher price and to manipulate the
price as he has been doing in respect
to gold
Senator Pittman said the ratification
Of the pact for which he had worked
was his Christmas present" and that
he never took part in any legislation
that gave me more satisfaction and
happiness"
Between frequent interruptions Of
those who telephoned to congratulate
him for the success of his efforts, Pitt
man told what he believed the treaty
meant.
Sees Others Following Suit.
"The action Of the United States un-
doubtedly will be followed by Canada,
Australia, Mexico and Peru. which con-
stitute the great silver producing coun-
tries of the world" Pittman said.
"It undoubtedly will stabilize the
price Of silver throughout the world at
64l5 cents an ounce until some other
action is taken to raise 1t to higher
price.
This price will increase the ex-
change value OF the money paid The
increase in the value of silver will in
crease the exchange value of the money
Of those countries to the same extent.
1T will increase their buying ca
pacity in the United States and will
enormously increase our export trade
to these countries"
Representative Smith, Democrat. of
washington said that as "a member
of the delegation which urged the
President to do something about silver,
I am particularly elated and am con-
fident his action will be approved by
the Nation"
Smith, like Pittman and others. con-
sidered the silver agreement ratiflca-
ton Of prime value in establishing
trade.
Sees Exports Benefited.
"The restoration of silver" he said
means that the purchasing powers Of
the Asiatic, South American countries
and Australia for the lumber and
products of our Pacific Northwest will
be greatly increased"
Senator King of Utah, while praising
Mr. Roosevelt's move held that it did
not go far enough and again urged free
coinage of silver He said: