The Bismarck tribune., 1934-05-17
BI.METALL|C BASE
FORU.S, CURRENCY
ISSEEN AT CAPITAL
President will Speed Message
to Congress Asking for
Quick Action
HUGE PURCHASES PLANNED
Treasury to Become Storehouss
for Vast Quantity Of
White Metal
HUGE PURCHASES PLANNED

washington. May 17.-(R-Presi-
dent Roosevelt, in agreement with the
senate silver bloc, will speed . mes
sage to congress proposing BIZ
metallic standard for United States
currency.
The chief executive set about writ
ing this new money document Thurs
day for dispatch possibly within -
hours. He was reported satisfied
with the understanding. It will mean
the purchase of q huge store Of sill
yer, estimated up to 1,800, ,O00.O 900
ounces.
Congressional leaders rearranged
their legislative calendars to make
room for action on the new admins
tration-tagged proposal before the
scheduled early June adjournment
The program in rough outline will
call for:
/. A mandatory declaration Of pol
icy that silver shall be purchased un-
til it constitutes IS per cent Of the
nations monetary backing, as against
IS per cent gold.
2. Discretionary authority as To
the time and amount OF purchases IN
world markets to bring about the de-
sired ratio.
3. Permissive authority for the na-
tionalization Of domestic stocks Of
silver condemning at q price not to
exceed so cents an ounce supply IN
this country estimated at around
250,0O0,000 ounces.
The agreement on the general prtn-
ciples OF such program was reached
at a lengthy White House conference
Wednesday night after weeks Of ne
gotiation.
Means Money Initiation
The present understanding Is that
silver would be purchased at the
market price but given the required
value of $1.29 an ounce for the issu-
ance Of dollar certificates. This
would mean some initiation.
It was understood that nationaliza-
ton, not included as mandatory,
would be undertaken only in the dis
cretion OF the president and subject
to international agreement to pro-
tect the United States from the un-
known quantities Of the white metal
lying just beyond its borders and
throughout the world.
The senators, including Wheeler Of
Montana, Pittman Of Nevada. Borah
of Idaho, and King Of Utah, were
unanimous In declaration that the
way had been found by formula Of
general principles.
The exact bill to be introduced re-
mains to be drawn.
The domestic price Of silver IS less
than half Of the proposed $40 an
ounce value to be given to certift-
Gates and the treasury is to be given
the right to cease buying and to sell
silver at any time the price over
reaches this point.
This same principle maintains In
the gold control policy with American
selling authorized whenever the world
price oversteps the domestic value
fixed by the president.
Plans Other Messages
Four other messages are understood
. to be planned by the president within
the next week. They will cover war
debts, munitions. cocoanut oil and
social legislation.
It is not expected legislation will
be sought on war debts and possibly
not on munitions.
Roosevelt will ask that the levy on
cocoanut oil, contained in the new
revenue bill, be repealed on the
ground that It Is unjust to the Phil
ippines.
In his social legislation message
the. president is expected to review
the problems Of unemployment, in
surance, old age pensions and other
labor bills. In this he also very likely
will point the way to quick adjourn
ment by congress.