Evening star., 1934-05-06
SILVER BLOC WINS
R0OSEVELT'S AID
Leaders Say President
Backs 1890 Ratio Bill
This Session.

This Session.
Continued From First Page)
far as possible, was broached at the
train conference with the President,
but 1t is understood the President Is
not yet ready for such a move. The
belief is prevalent, however, that
sooner or later Great Britain, par
ticularly, and other foreign nations
will be ready to discuss going back
on the gold standard, and in that
connection the reconciliation of
silver.
! Those members of the silver bloc,
who joined the President on board
the train, which he was taking yes
| terday morning to New York were
f, Senator King of Utah, Thomas
Of Oklahoma, Adams of Colorado,
Smith of South Carolina, Wheeler of
Montana, Dill of Washington. and
Pittman of Nevada, all Democrats,
and Shipstead of Minnesota, Farmer
! Labor. Representative White of Idaho,
Democrat, was present representing the
House group of silverites. Vice Presi-
dent Garner also sat in the conference
: The Democratic leader Of the Senate
and House. Senator Robinson of
Arkansas and Representative Byrns of
| Tennessee, and Speaker Rainey were
on the train, but did not attend the
conference The silverites left the
train at Baltimore and returned to
Washington.
King Predicts Passage.
Senator King of Utah, who has
been acting as chairman of the Silver
Bloc Committee in its dealing with
the President, last night said, without
going into any of the details of the
conference:
There will be bill passed at the
present session of Congress. which
will give silver a higher monetary
position than it now occupies. 1t
will carry out the promises made in
the Democratic national platform to
do something for silver"
| Just how the silver legislation is
| to be handled in Congress occupied
good part of the conference with
| the President, which added to the
belief of the Senators that the Presi-
dent is willing to accept such legis-
| lation. At present there is pending
/ in the Senate a silver amendment
offered by Senator Long of Louisiana
/ to the so-called Glass bill to extend
credit to industry through the FEEDER
al Reserve system. That is the Dies
bill as amended by the Senate Com
/ mittee on Agriculture. Senator
| Thomas has pending a substitute for
the Long amendment embodying the
latest silver proposals.
The President is represented as be-
lieving it would be better to have a
separate silver bill, and not to press
| it as a rider" to the Glass bill. pro-
vided bill can be agreed upon which
| is satisfactory to him. Members of
! the silver bloc are inclined to agree
with him. The Glass bill is due to
come before the Senate tomorrow. If
| at conference which is to be held
! at the White House with the President
tomorrow morning the details of the
| measure can be agreed upon, Senator
| Thomas said the silver amendment to
the Glass bill will be withdrawn along
with his subs titute for the amendment.
If no agreement can be reached at
that time, then the Glass bill will be
held up while further conferences are
underway and the Senate will be ex-
pected to proceed with consideration
of the stock exchange regulation bill,
which passed the House Friday.
Morgenthau Present.
! With the President at the train
confer ence on silver yesterday were
Secretary Morgenthau of the Treasury
Department and Eugene Black, gov
| ernor of the Federal Reserve Board
The various silver proposals were
handed to them by the members OF
the silver bloc. The President in
structed Gov. Black, who returned to
Washington. to go into the whole
matter thoroughly, and he himself
| promised to give the problem con-
sideration over the week end 1t was
Secretary Morgenthau who estimated
! that the naturalization of silver
| stocks could be accomplished by TAX
ing over 250,000,0O0 ounces.
When it comes to establishing the
1890 ratio of gold and silver behind
the currency, the plan. according to
the Senators, is to hold the present
supply of gold as the 70 per cent OF
the total and to bring silver holdings
up to the other 80 per cent. AS of
May 3, the Government held S7,756.-
100000 worth of gold. Silver to the
value of $3,240 ,000 900 would have to
be added to carry out the plan. The
Government now has less than
81 900 100000 worth of silver. 1t is
estimated that it would have to &C
quire by purchase something between
l 100000, 900 ounces more of silver to
5000, 900 ounces, depending upon
the price OF silver in the future. to
bring the total holdings up to the
80 per cent point. Silver Senators
said 1t would not be possible to pur-
chase so much silver, particularly as
there is only about 9,40O 600, 600
ounces of monetary silver in the
world, of which about 1900 900 600
are held in British India and China
In fixing so cents an ounce as the
figure at which to nationalize none
tary silver. the silverites say the price
OF silver has been below so cents for
a year. For that reason it would be
fair to write into the law the So
cent maximum price that the Govern
ment would pay. Silver certificates
would be exchanged for the silver
bullion and thus put into circulation
The actual naturalization price would
be the price on the day before the