Evening star., 1934-08-09
Leak ON News
Charged by
Thomas.
MUCH OF METAL
TO BE EXEMPT
President Employs
Right of Domain
Under Law.
ny the ANsoeiated Preas.

ny the Associated Press.
President Roosevelt today national
tied the Nations store OF silver and
called for It's delivery TO the United
States mints within 90 days at a
price Of 50.0i cents an ounce.
The action was taken by executive
order under authority granted by Con-
gress In the silver purchase act passed
last session. Secretary Of the Treasury
Morgenthau made public the order
and an accompanying presidential
proclamation at press conference.
In taking over the silver. Morgen-
ttau told reporters, the Government
was exercising the right Of eminent do
main.
II am very much relieved that It's
over" was the siecretary's only COM
ment on his announcement.
Coins Net Withdrawn.
The naturalization of silver followed
by little more than year some
what similar action with regard to
gold, although In the case Of silver the
Government viii not withdraw coins
from circulation.
Eewly-mined silver, which is regu-
1arly being purchased at 64is cents
m ounce under the Presidents procla-
nation Of December 81, 1888, is ex-
empted from the order, and win be
bought DIS heretofore.
Also exempted in addition to United
States coins are foreign coins, ore,
silver owned by foreign governments
and foreign central banks and silver
In fabricated articles.
First to comment ON the admins
fration's action was Senator Thomas,
Democrat, Of Oklahoma, a Senate
silver bloc leader, who hailed 1t as
the overthrow Of the worldwide gold
bloc
He said the world would have to
follow the saTaA Bbufse and thus lead
TO n new international monetary sys-
tenn. He also forecast 1t would bring
an international agreement on money
which win be the beginning Of new
era Of prosperity.
Thomas Charges Leak.
while he appIauded the move,
Thomas said there had been q leak
on 1t, pointing to the sharp rise in
the price of silver during the past
week.
Somebody on the outside got a
tip" he said. The fact 1t went up
from 46.40 ON August 3 to a high of
4s last night shows that somebody
got q leak"
First hints OF naturalization were
given last night, when Morgenthau
ordered that each 500 worth of silver
or more, imported from abroad must
be accompanied by consular invoice
Exempted from this order were bullion
already In transit, that imported for
re-export and the crude metal.
The Treasury has been buying silver
In the markets of the world under
authority OF the silver purchase act
over q period Of months, but the
amount acquired has been kept an
ofacial secret, Various estimates have
placed 1t around 100, 0,0oo, 900 ounces.
The Treasury holds approximately
So .000. 600 ounces of silver acquired
from other sources. and the new order
viii bring in, officials said, at least
poSitories recognized by the exchanges
on which the metal is traded.
Lets Industries AIene.
From now on. manufacturers using
silver for fabricated articles win have
TO obtain the metal on license from
the Government, although Morgen-
thau emphasized that no interference
would be placed in the way Of legiti-
mate Industrial use.
Senator Thomas said that from the
standpoint of imitation or as a step
toward establishing a 25-to-75 ratio
between silver and gold as q monetary
stock, the naturalization move was
not important. He said the Govern
ment still would need TO purchase q
billion ounces of silver to meet the
ratio which has been set by Congress
He contended the importance Of
the move was "a declaration Of policy
that we need silver to add TO our gold
aS money"
"It is a declaration there is not
enough gold in the world to satisfy the
demands for money" Thomas added.
EFT is a return to silver.
1T means the strongest and rich
est nation has decided to make q
wider use Of silver as money. This
will cause other nations to dopt a
similar policy.
1T is the initiation of new policy
that is destined TO be worldwide. 1t
marks the beginning Of a new world
monetary system"
He estimated that, under the pro-
gram, the Government would take
over 2oo, ,ooo. 900 ounces of silver Es-
Inmates OF the amount subject TO
naturalization. he said. ranged from
1880 900 70 225. 900 900 ounces.