Evening star., 1934-05-09
P|TTMAN HURR|ES
SILVER BILL FOR
WHITE HOUSE OK,
Draft Gives Roosevelt Right
to Decide Method of
Action.
PRESIDENT WITHHOLDS
JUDGMENT FOR STUDY
Measure Would Direct Mainte.
nance of Is Per Cent Metallic
Reserve With Gold.
BY the Associated Press.

By the Associated Press.
Excellent progress" in framing sill
yer legislation was reported today by
Senator Pittman. Democrat, of Ne
vada, after a Treasury conference
with Herman Oliphant, counsel to
Secretary Morgenthau
Meanwhile, President Roosevelt
favorably canvassed the desirability
of Matchmaking silver, but withheld
final Judgment until legislation de-
sired by silver Senators was drafted
Pittman indicated to reporters he
thought a bill should be ready for
White House study before the week
end.
Oliphant Sees Bill.
The Nevada Senator, who negoti-
ated the London silver agreement,
submitted a proposed draft to Oil
phant for his consideration.
Pittman's idea, If adopted by the
Treasury, would authorize and di-
rect the Secretary of the Treasury
to establish and maintain a metallic
prising 25 per cent.
the plan would further authorize
and direct" the Secretary of the
Treasury to make silver a primary"
monetary basis.
Pittman said such a statement
would express as the policy of Con-
gress three points:
That silver should be acquired TO
build up the desired Is per cent re-
serve with gold.
That this reserve should be MAIN
tanned.
That silver should henceforth be a
primary basis Of currency
This policy declaration was under
stood to be the mandatory feature of
the proposed legislation referred to by
the White House. The method of
carrying out the policy would be left
to President Roosevelt. and to that
extent the bill would be permissive,
Pittman said.
II would assume that such declara- =
ton of policy would be carried out, -
he added.
No Final Agreement.
The plan discussed by Pittman and
ollRlldIlG ClIlRO"Cl 4lCdS-
ury to sell silver If the world price
were forced above s129 or if the 25
per cent reserve was exceeded.
Pittman emphasized there was no
final agreement. but that interested
persons were seeking to work out a
bill
For acquiring the 250,000 900 float
ing silver stocks, a fixed price of so
cents an ounce has been suggested
with a heavy excess profits tax to
limit the profits of spectators who
have bought the metal for as low as
40 cents.
He regards the bi-metallic proposal
put forward yesterday at the White
House conference as both permissive
and directory legislation and. appar-
emily, is willing to go that far.
In other words, a declaration of
policy by Congress for 25 per cent
silver backing for the monetary sys-
tenn will be regarded as a mandatory
declaration of policy, but the Presi-
dent feels the time when it shall be
put in effect must be left to him.
Theory Not New.
1t is regarded at the White House as
nothing new to have a silver backing
for currency. 1t was said that an even
larger percentage than the proposed 25
prevailed during me administrations
Of Presidents Mckinley and Theodore
Roosevelt.
Approximately II per cent was said
to prevail now, but the President is
willing to 60 up to 25 as proposed
at the London Economic Conference
For the Government to take over
the silver stocks of the Nation. as was
done in the case of gold, he feels
legislative authority is necessary.
The President emphasized that in
Matchmaking silver. the Government
would take over only bullion, permit
ting the people to keep their silver
dollars and other silver coins.