The Waterbury Democrat., 1934-08-09
Dramatic Change
 m Siluer Standing
(Continued from Page D

United States at present. of which 45,OO0,o00 are in Repositories rec ognized by the silver exchange.
 Silver was nationalized at 50.01 cents an ounce. Secretary of Treasury Henry Morgenthau, Jr., explained that the fixed price will save the government money by not requiring it to buy silver at rising speculative market prices. Silver was qutoed at 49.5 cents per ounce in New York shortly before the treasury flashed the sil. yer naturalization order, effec- tive today. The market price has been rising steadily.
 90 Days The Limit
 Silver under the order must be turned over to government hints within 90 days. Payments will be made in standard silver dollars silver certificates or in other cur rency. Silver ore and fabricated silver is exempted.
 Newly mined silver also is eX- empt, the treasury continuing to pay 63 cents an ounce for it.
 Morgenthau explained that un- der the 1884 silver purchase act, the treasury would be unable to pay more than 50 cents per ounce and had the quotations risen, the secretary would have been unable to control the silver market.
 Financial circles here attributed the move to control silver, the same as is already in effect fol geld, as an important step toward what President Roosevelt termed the organization of q currency sys. tenn that will be sound and ade. quate," and which contemplates g large issuance of currency which ultimately will be based upor three-fourths gold and one fourtl silver.
 The effect of the nationalizatior is to give the government absolute control of all domestic silver sticks It is aimed to prevent possible sales by domestic sources in foreign markets should prices have gone above the 50 per cent per ounce limit attached to the treasury's powers.
 Some Exemptions
 The executive order also eXempts foreign and domestic silver coins ore, foreign government owned sil. yer, silver owned by foreign cen. tral banks and manufactured sil. yer articles such as table ware and jewelry.
 The hints under the order vii deduct 61 and S-25 per cent o the silver received for seiginorag, (cost of coining) which is expected to give the treasury a slight profi on the forced silver transactions. Morgenthau explained that tn, order, which eXempts newly mined silver, was on the theory of emin ent domain, which gives the gov ernment powers to condemn it This was regarded as the eXplana tion of how the treasury was abl, to peg the price at 50.01 cents pc ounce instead of at 50, the limi which Morgenthau said could b. paid on all silver.
 Sen Elmer D. Thomas, d., Okla inflationist leader, hailed the ma tionalization order as "a yer, necessary move to carry out tn policy outlined by congress"
 q believe it will have ia reaching effect and be of vast as sistance to the administration il adjusting our monetary policy t regulate the buying value of tn dollar," he added.
 Thomas recently criticized Sec retary Morgenthau and not pro ceeding vigorously with the silve purchase policy adopted by tn 73rd congress.
 Silver Sidelights
 Washington, Aug 9-(UP)-. note of drama crept into Secretar of Treasury Henry Morgenthau' announcement today of the nation alization of silver.
 Reports of impending national ization had been revived with issu ance last night of instructions tha hereafter consular invoices will b required on all shipments of siI yer into the United States exceed ing $100.
 Reporters, eager for clarificatioi were beaten to the draw" by Mol genthau.
 After carefully closing the door in his air-cooled office suite, Mor genthau exacted a promise fror the newsmen that nobody wi leave the room until they ha heard his story"
 Then he calmly explained tn situation and facetiously remarked If there are any questions yo might return later and I think yo may be in a hurry to dispatch thi story"
 Financial circles commented UT on a strange coincidence in the is suance of the edict.
 As the president was making hi much Green Bay, Wi speech, Mogenthau, broke" th story.
 He also gave out copies of th presidents proclamation and exc cutive orders, which gave rise | the belief that the treasury ha planned the step for sometime an had been empowered to take tn move whenever silver quotation hit 49.5 cents per ounce. It wa believed. however, that Morger thau telephoned the chief execr tive for final instructions befor acting.
 Farmers Can Pay Debts
 Washington, Aug. 9.-(UP).- Naturalization of silver will hel farmers pay off their debts, Sel Elmer D. Thomas. democrat, Okls homa. one of the foremost silvt men. 1did today.
 Nnswering the debt question Thomas said:
 "The answer is yes in box ca letters. Silver Is now primar