Evening star., 1934-05-07
PRESIDENT TAKES
Up SILVER PLANS
W|THMORCENTHAU
Program Discussed Pre-
Iiminary to Meeting With
Congress Advocates.
ROOSEVELT INSISTING
ON FREEDOM OF ACTION,
Chief Executive and Secretary
Also Will Discuss New
Revenue Bill.
BY the Associated Press.

By the Associated Press.
President Roosevelt called in Sec
retary Morgenthau today for lunch
con conference on the silver problem
preliminary to a meeting with con-
sressional advocates to determine
what, if any, legislation will be sane
toned at this session.
Uncommitted to any specific pro-
posal. the President took up the
whole subject, determined not to ap-
prove any program for mandatory
legislation.
Two or three alternative proposals
providing for presidential action IN
furthering his program for lnterna-
tional silver rehabilitation are under
consideration.
To Go Over Revenue Bill.
Moroenthau also was preparing to
60 over the new SALT 100000 revenue
bill with the Chief Executive. Mr.
Roosevelt probably will sign it as soon
as it is returned by the budget
director.
Willing to compromise, the de-
termined Senate silver group carried
a four -pronged proposal aimed at d
3O-silver to 70-gold monetary backing,
They were confident the President
would approve part, if not all. OF their
plan, provided they agree to making
the legislation permissive rather than
mandatory.
All Congress awaited the outcome OF
this latest parley. 1t may hold the
key to early adjournment.
Should an agreement result, the
Senate might turn almost lmmeolate
attention to the silver question. Inc
tentative plan of Democratic leaders
however, was to push through the
stock market control bill beforehand.
Conference Yesterday.
Mr. Roosevelt was well armed for
the conference. He had talked at
length with Secretary Morgenthau
Yesterday while en- route back 10
washington aboard the yacht Sequola
from a cruise down the Potomac.
Governor Eugene Black OF the red
eral Reserve Board. who was sent back
from Saturdays trainboard confer
ence to study the silver SITUATION hao
ready a preliminary report.
The showdown today was on a
legislative project which, roughly
would provide: o,,
law declaring favor for the back
ing of 80 per cent of the Nation
money with silver:
The naturalization of all except IN
dustrial silver, or giving the Govern
ment, control of all such metal at
market price not to exceed 90 cents
an ounce.
A permissive purchase program Tor
the gradual acquisition OF a nuge
store of silver without boosting tne
price too sharply; possible approval
of the Dies bill in permlsslVe 1orH'
having a bonus for silver received here
from abroad in exchange for surplus
agricultural products.
Insists on Free Action.
The President was represented as
being absolutely insistent upon MS
hand being left free to seek some sort
of international action on the silver
question. ;.,
He was said to feel that. with
CANADA and Mexico both silver pro-
ducers. it would be necessary to nave
some sort of agreement before going
ahead with any big-time silver alo
plan.
Despite all the talk. Treasury ex-
merits declared themselves still puz-
7led over just what 7O-30 gold-sllVer
ratio would mean.
Assuming it to refer to the NUMBER
of dollars in monetary gold and silver
respectively. it would mean increasing
the Treasurys silver supply from
$40, 900 900 to $685. 100000. The
gold assets are $7,755, 100000.
In other words. it would necesSltate
buying more silver than some experts
believe could be acquired in the world
lust now except at exorbitant prices,
Latest reports of the director OF the
mint put world monetary silver stocks
at lust above s4 900 900 900 The do
mestic production runs only 25,oOo,-
900 ounces annually.