The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-04-11
BLOC
ADDS SILVER TO
RECOVERY PLAN
$780, 900, 900 Farm Subsidy
involved; Roosevelt
Opposed.
BY HERBERT LITTLE
Times Special Writer

dDlo W agree OH pan 10 remedy
their economic ailments, are uni
flying their forces to slam silver into
the recovery program, whether
President Roosevelt wants it or not
The indications are that the Presi-
dent doesn't want it.
In the background Senator Key
Pittman, Democratic leader and an
administration spokesman on for
eign affairs, is awaiting an oppor-
tune time to recruit soldier bonus
advocates in favor of a plan to buy
silver and issue money on it to pay
off the World war adjusted compen-
sation certificates.
A combination farm surplus and
silver producers subsidy bill intro
duced by Representative Martin
Dies, youthful and vocal agrarian
Democrat from Texas, passed the
house Of representatives by the
astounding vote of 257 to 112, in the
face of Treasury Secretary Henry
Morgenthau's plea that the admin
iStration be left alone to work out
its fiscal problems on the basis of
the new gold program. The alarm
ing thing to eastern conservatives
and staunch administration sup
porters is that this vote represents
far more than the necessary two
thirds to pass the bill in the house
over presidential veto.
1t is also alarming to this group
to recall that in January they could
muster only a two-vote margin to
defeat the straight out silver buy
ing program of Senator Burton K.
Wheeler of Montana. This bill, Of
fered then as an amendment to the
administrations gold bill, would
have ordered the purchase of $780,
100000 ounces of the white metal
much more than the apparent
United States supply-and the is
suing of money against it.
Other Silver Proposals
Now the threat is intensified by
action of the senate agriculture and
forestry committee, dominated by
silver and farm senators, in direct
ing a subcommittee to work out a
bill consolidating these and other
silver plans for an early report to
the senate.
One of these proposals is the
F'eisinger bill pending in the house.
1t would order the purchase of up
to 1,000000,000 ounces of silver, and
its use as currency base, until the
1926 price level is attained. The
price level feature, along with the
silver purchase and imitation feature
of the Wheeler bill, probably will be
combined with the farm surplus
plan which gained so many house
votes.
Only eleven western states pro-
duce silver, and only two, produce
much, but all the western members
of congress are unified in support
of any plan to ''rehabilitate" the
metal. This in most cases involves
RECOMMENDATION" which means Wild
er use of the metal as a currency
base than is called for by the pres
ent subsidiary coinage and limited
supplemental issue of silver certif-
icates. The opposition of Sound
money advocates, carrying on the
victorious flag which beat down the
Byran campaigns, so far has headed
this off.
Terms of Dies Bill
The Dies bill, now before the SEN
ate agriculture committee, is a re-
markable document. It contains an
admitted $400,000,000 a year federal
subsidy to farmers, and novel plan
for paying it. Here is how it would
work:
THE agricultural surplus exchange
board" would be created, consisting
! of the President and secretaries of
treasury, commerce and agriculture.
Incidentally, an alleged fatal flow
exists in the bill as the house
passed it because 1t carries no APP
preparation, nor any authorization
for an appropriation, for the boards
necessary activities.
This board is directed, through
the governments foreign agencies,
to negotiate sales of American farm
SURPRISES, agreeing to take payment
in silver coin or bullion at a valu-
alton OF up to 125 per cent of the
worlds market price of silver. Buy
ing at 125 per cent would mean a
discount of 20 per cent on the sales.
Opponents say this is dumping"
frequently resorted to by other
countries and often criticised in
this country by producers Of goods
which compete with foreign goods
! sold here at less than cOSt
Currency Issue Required
The board would deposit the sill
yer in the treasury, and the secre-
tary would be directed to issue
against it currency-on the value
at which the silver was accepted
for farm products. At the top limit,
this would mean issuance of money
at 125 per cent of the world market
price Of silver.
The currency issued would be re-
deemable, however, at the market
price of silver In other words, the
government would take the loss re-
Sulting from the increase allowed
over the world silver price in the
farm sales. The bill specifies that
this premium or excess" shall not
exceed $400, 100000 a year.
If the full Is per cent premium
en- silver were allowed, 100000 600
in silver could be taken. If the
premium was only 1871 per cent,
twice as much silver could De &C
cepted. The bill specifies the life of
the plan at two years, expiring