Evening star., 1934-05-22
Sounds Out Foreign Nations.

cOuhuS OuL TOIcISH 1NdtIOnSs
Tie President disclosed in his mes
sage to Congress that he is already
sounding out foreign nations with a
view to international agreement en- a
stabilized, standard monetary value of
both silver and gold.
He said that concerted action by all
nations, or at least a large group of
nations, was essential if "a permanent
measure of value, including both gold
and silver, is eventually to be mace a
world standard"
To arrive at that point, we must
seek every opportunity for world
agreement said the President, al
though it may turn out that this Ma
ton will ultimately have to take such
independent action on this phase of
the matter as its interests require"
The Presidents silver message was
hailed today by members of the silver
bloc in Congress as a long step in
the right direction. They expressed
the belief that the silver legislation
would be passed without material de-
lay at the present session of Congress.
Plan to Substitute Bill.
The administration silver bill was
introduced in the Senate Immediately
following the reading of the Presidents
message by Senator Pittman of Ne
vada, who had been requested to
handle the bill by Senator Robinson
OF Arkansas, the Democratic leader.
The bill was allowed to lie on the table.
1t is understood that when the proper
time arrives for consideration of the
silver measure, motion will be made
to take up the Dies silver bill, already
on the Senate calendar and to sub
Stitute the administration bill for that
measure.
The Dies bill already has passed the
House and been reported to the Senate
from the Committee on Agriculture
with amendments In its original
form the Dies bill provided for the
exchange of agricultural surplus prod
ucts to foreign nations for silver at a
bonus value
Senator Pittman told the Senate
that the measure he introduced was
the administration silver bill, and was
the result of conferences between the
Executive and the members of the
silver bloc.
The silver bill presented today is
the result of many conferences be-
tween the President and his advisers
and members of the silver bloc in the
Senate and the House. While it lays
down a new policy with regard to
silver and declares specifically that
the silver stocks held by the United
States Government shall be brought
to ratio of 25 to IS, as compared with
its gold holdings, the President is given
discretion as to the time and circum-
stances under which he shall ma
terially increase the silver holdings
of the Government. The President
Is also left discretionary powers as to
the naturalization of silver stocks
now in the country.
Must Acquire Much Silver.
The silver Senators regard as of
very great importance the positive
declaration that the President shall
be authorized and directed" to in
crease the amount of silver holdings
to % per cent in value as compared
W IAlC SOIO uOlQulSS.
The United States Government will,
it is estimated, have to acquire a
very large quantity of silver to bring
these holdings up to 25 per cent in
value of the metallic reserves back
OF the currency. Various estimates
have been made showing that the
silver purchases might run up to g.
600, 100000 ounces, depending largely
upon the price that silver may reach.
At present the silver stocks held by
the Government are approximately
00,O00,000 ounces, including the
silver coins.
Under the new plan Of silver pur-
chaseS, the Government would issue
silver certificates for the silver. To
such an extent this would mean addi-
tional currency in circulation.
Prof. James Harvet Rogers was sent
to China to study the silver problem
a couple months ago for the admin
stration. He has been in that coun-
try several weeks and will later go to
Japan to make a study of the silver
question there, too. Mr.. Rogers has
to Secretary Morgenthau of
the Treasury on his silver studies in
China. China is one Of the great
silver using nations of the world.
The Nationalist government there has
been represented as regarding it of
prime importance that silver con-
tinue cheap In order to continue with
its economic expansion program. How
they will regard the movement in the
United States, which Is expected by
its proponents to increase the price
Of silver has yet to be divulged. The
effect on American commerce with
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