The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-08-09
Roosevelt Authorizes Step
by Executive Order
to Nation.
NOT INITIATION ACTION
Move Permits Government
to Save Money in Pur-
chase Plan.
By United Press

WASHINGTON, Aug. g.
President Roosevelt today r.
tionalized silver in a dramatic
monetary policy move which
| gives the government COM
plete ownership of gold and
silver-the precious metals
backing the nations currency.
BY executive order and proclama-
ton, all silver in the nation with
few exceptions was ordered turned
over to the minis. Gold already is
in government vaults under a SIM
! liar naturalization order.
Naturalization in brief is gov
eminent ownership of all silver
stocks in the country,
The move permits the government
to save money in its silver purchase
plan under the requirements of the
silver policy act of the last con-
gresS requiring a build up of silver
reserves to a to 3 ratio with gold.
Silver naturalization Immediate
ly was applauded by congressional
monetary leaders who warned, how
ever, that the move was in no sense
currency initiation maneuver.
MOrgenthOu Gives Explanation
BY its absolute grip on silver as
well as gold, the administration is
believed to be attempting to in
crease its monetary stocks
Treasury officials estimated that
there are between 150,000,000 and
2c2,000,000 ounces Of silver in the
United States at present, of which
45,O00,000 are in repositories rec
ognized by the silver exchange.
Silver was nationalized at 5001
cents an ounce. Treasury Secretary
Henry Morgenthau Jr. explained
that the fixed price will save the
government money by not requir-
| ing it to buy silver at rising specu-
lative market prices. Silver was
quoted at 49.5 cents an ounce IN
New York shortly before the treas
ury flashed the silver nationalist
ton order, effective today. The
market price has been rising
steadily.
Silver under the order must be
turned over to government minis
within ninety days. Payments will
be made in standard silver dollars,
silver certificates or in other cur
rency. Silver ore and fabricated
silver is exempted.
New Mined Silver Exempt
Newly mined silver also is exempt,
the treasury continuing to pay 63
cents an ounce for it.
Mr.. Morgenthau explained that
under the 1884 silver purchase act,
the treasury would be unable to pay
more than so cents an ounce and
had the quotations risen, the secre-
tary would have been unable to con-
troll the silver market.
Financial circles here attributed
the move to control silver, the same
as is already in effect for gold, as
an important step toward what
President Roosevelt termed the or
ganization of currency system that
will be sound and adequate" and
which contemplates a large issuance
Of currency which ultimately will be
based upon three -fourths gold and
one-fourth silver.
The effect of the naturalization
is to give the government absolute
control of all domestic silver stocks.
1t is aimed to prevent possible sales
by domestic sources in foreign
markets should prices have gone
above the 50-cent per ounce limit
attached to the treaSury's powers.
Thomas Lauds Move
The executive order also exempts
foreign and domestic silver coins,
ore, foreign government owned sill
yer, silver owned by foreign central
banks and manufactured silver ar
ticleS.
The minis under the order will
deduct 81 and 8-25 per cent of the
silver received for seignorage, which
is expected to give the treasury a
slight profit on the forced silver
transactions.
Mr.. Morgenthau explained that
the naturalization order, which
exempts newly mined silver, was on
the theory Of eminent domain,
which gives the government powers
to condemn it. This was regarded
as the explanation of how the
treasury was able to peg the price
at SOL cents an ounce instead Of
So the limit at which Mr. Morgen-
than said could be paid on all sill
yer.
Senator Elmer D. Thomas Dem,
Okla, inf1ationist leader, hailed the
naturalization order as "a very
necessary move to carry out the
policy outlined by congress"
Il believe it will have far-reach-
ing effect and be Of vast assistance
to the administration in adjusting
our monetary policy to regulate the
buying value Of the dollar" he
added
Mr.. Thomas recently criticised
/ Secretary Morgenthau for not pro-
ceeding vigorously with the silver
purchase policy adopted by the
seventy-third congress.
$500 Is Loot in Bank Raid
BIZ United Press
TAUNTON. MINI, Aug. 9.-Two