The Washington times., 1933-12-22
BORAH BELIEVES
ACTION To Be
INADEQUATE
Others Back Him in Opinion
President "DoeS Not Go
Far Enough"
By international News Service


nation upon a program Of silver
purchase and coinage which au-
tomatically raised the price of
the metal more than 20 cents an
ounce.
The President ratified the Lon
don Economic Conference silver
agreement, and in so doing
"pegged" silver prices on the un-
der side at 64.5 cents an ounce.
Most congressional leaders OBJ
served today that the step was
4 welcome one, but did not go far
enough.
Under the cement, the
United States will hold Oft the
world market-that is, coin or
place in Treasury vaults-24,412,-
11O ounces of silver annually for
four years, virtually this nations
entire output.
Opinions in Conflict
The price fixed was arrived at
by proclamation that the newly
mined silver would be coined at
the legal rate of $1.29 an ounce
with the Government keeping
80 per cent of the metal for coin
age. Actually, then the owner
will be paid at the rate Of GAS
cents an ounce. That figure is a
little more than 81 cents above
the world market for silver as Of
yesterday.
Congressional opinion differed
sharply upon the efficacy of the
silver program, which the Presi-
dent specifically said he expected
to stabilize domestic prices, but
nearly every leader said the
move did not go far enough.
( Borah, Cummings Comment
Senator Borah (R) of Idaho
was blunt in his comment. He
said:
Insofar as it goes, the step
was . welc ONE one, but it
doesn't solve the problem Of
restoration of silver by . great
deal"
Others, including Representative
Cummings CD of Colorado, q
member of the silver bloc in the
House, appeared to agree with
Borah in substance. Cummings
said:
81 am still for 16 to 1. The
Presidents confirmation Is =
step in the right direction"
=, Senator Dickinson (R0 Of Iowa
remarked:
= "It will create an impetus In
the silver market, but / do not
think it will satisfy the out
spoken advocates Of remOneti-
nation Of silver"
:. President Roosevelt'S action
marked this nations adherence
to the first international none
tary agreement.
Ratified By India
India has already ratified the
pact, and will limit silver sales
for the next four years to thirty
five million ounces annually. China
whose representatives at London
agreed to the pact, but which has
not yet formally ratified, will sell
no silver for four years. SPAIN
another producing country. Will
limit also to five million ounces
during that period.
:. Accomplishment Of the silver
agreement will bring, at the end
81 the four-year period, effective
0neration bv 66 nations which
signed at London
Proposed by Pittman
Proposed by Senator Key Pitt
man D), of Navada, leader OF
the silver bloc. and signed by 66
, nations conditioned upon ratifica-
ton of silver sales limitations for
four years among eight nations,
the agreement provides at the end
Of that time:
i. Abandonment of the pol
icy of melting up or debasing
silver coins.
= 2. Replacement of low value
paper currency with silver.
! 3. Prohibition Of legislation
that will depreciate the value OF
ssilver.
President Roosevelt apparently
nut off American ratification OF
The agreement pending action by
india, which with vast silver stores
constituted the greatest dumping
menace"
Fletcher Sees Benefit
= Senator Fletcher CD Of Flor
Ida, chairman of the Senate Bank
ing, and Currency Committee,
hailed the action as beneficial. He
said:
!. 81 am inclined to think it is
an excellent move. cannot
tell whether it will accomplish
1what is desired. but it is . move
An the right direction"
+ Senator Pat Harrison CDO Of
Mississippi, chairman Of the Sen
Gte Finance Committee, indorSed
khe silver program, but was doubt
eul, like others, that the program
would eliminate a fight for direct
Initiation when Congress convenes.
z Senator Connally CD Of
Texas, who led the Senate fight
0hSt spring in behalf of the gold
devaluation program later author
1zed In the initiation amendment
% the farm act, declared the
Silver purchase plan would be
3 boon to the West.