The border vidette., 1933-04-22
SENATOR HAYDEN MAKES SUR
VEY OF SILVER SITUATION

Silver will play q vital part in
the ultimate economic recovery
Of this nation and the world at
Large, Senator Carl Hayden, OF
Arizona. told the U. S. Senate
in q documentary report he has
submitted TO that body.
! The white metal, IS q hand
maid to gold. is the best availa.
BILE key to open the door for Q
revival of information trade, Sen.
ator Hayden believes.
Arizona's junior senator made
q comprehensive world survey
Of the silver situation and found
therein startling Information for
| the guidance Of the Roosevelt
administration in its imminent
assault upon the problems OF
war debt payments and world
commerce. This work began q
year ago and was carried on
through the CO operation of the
Departments Of State and Com
nerce Recognition of the re.
port was given by the senate
when it unanimously adopted q
resolution submitted by Senator
Dill, OF Washington, providing
for it's publication as q senate
document.
Senator Haydeo's findings
show that market Of more than
q billion ounces of silver would
be opened if the 10 debtor pa
tions would use silver as . bank
ing reserve and q monetary
medium Of exchange to the
same extent that it is used at
present in America.
The wide benefits to be deriv
ed from the international silver
coinage policies advocated By
the Arizona senator are striking.
~ illustrated il detailed statisti
cal analyses included in the
report. These bring out two
facts cootributory to the pre-.
tvailing economic strees.
| First, that without realizing
the effect upon price levels, for
eign nations, il, order to gain q
temporary advantage for them.
selves. have debased or demoni.
tisea their silver coinage. They
either decreased the amount Of
silver used ia coins or else re-
duced the amount of silver coin
age. The silver these nations
removed from their currency
systems was thrown upon the
market, driving the price OF the
white metal TO the lowest point
10 all recorded time. The roper
cussions Of this practice have
been felt 10 every avenue of
trade.
| Secondly, there has been re.
duction Of more than two thirds
in the use Of silver by central
banks OF these nations as re-
serve against issues of paper
money. This contributed to the
demsnd for gold 10 trade chan
, nels, thereby abnormally in
creasiug the value OF the yellow
metal.
/ Senator Hayden found that
/ there is & direct connection be-
tween the abandonment by gov
ernments Of the use OF silver and
| the financial distresses from
which people in all parts Of the
earth are now suffering"
Common sense would indi-
cate" be continued, that q re-
versal Of this process-restora
ton Of silver to its pre.war and
pre- panic monetary uses--wiil do
more than any other one thing
to generally increase commodity
prices and thereby restore pros
perity."
The Senator explained that,
1T was my thought that in some
way the matter Of the intergov.
ernmentai debts and silver could
be linked to the advs ta9e Of alt
! concerned"
He believes that a substantial
increase in the price OF silver
throughout the world is highly
| desirable. To re establish a
greater monetary use of silver
ia Europe and the United States
is certain to raise the price of
that metal.
The acceptance OF silver by
the American government in
payment OF the foreign debts
under proper i!12;eations," be
says, is tbe quickest and most
effective way to obtain these
bene ticial results"
Il the debt payments are made
, 10 silver at tbs market price Of
the metal at the time OF the pay.
ment. it Is suggested as one