Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-06-02
Climb of Silver Shares Re-
wives Support for Other
Groups.
EXPANDED U. S. BUYING
OF METAL is TALKED
Wall Street Sees Way to Offset
Deflationary Influences From
Supreme Court Decision.
By the Associated Press.

By the Associated Press.
NEW YORK, June Most leading
financial markets continued to labor
under the spell of the N. r. A. con-
troversy today but. here and there.
signs of a break in the clouds ap-
peared.
Stocks pointed downward during the
greater part of the brief Saturday ses-
sion until. in late trading. rally of
silver mining issues brought support
to other groups.
Cotton futures, after tumbling more
than So bale on Friday, got back
SIPS to $l.70. Grains dropped to
new seasons lows in Chicago, then
came back substantially when early
sellers took profits. Wheat ended
to 112 cents bushel lower and corn
was unchanged to up l cent.
There was no specific news to &C
count for the upturn in metal stocks.
Some buying in this division was at
tributed partly to the belief that the
Treasury would expand its silver buy
ing program as a means of partially
offsetting the deflationary aspects Of
the recent Supreme Court ruling.
U. S. Smelling was the best per-
former of the mining section. getting
up s5.75 a share to sl12. Cerro De
Pasco also improved s2.62 at SIS and
American Smelling recovered So at
S425O.
Gold Supply Mounts.
rt. IA. 80 caId roo,,;or o,,t ~
France has hit the United States
strongest challenger as a store-house
for the metal.
Much of the yellow hoard" from
Paris has been coming to this coun-
try, as fast as ships can transport 1t
across the Atlantic to its new haven.
AS the French supply falls, the
Treasury daily chalks up its gold as
sets to new high figures.
More gold than available records
show ever before was concentrated
under the wing of one central author
ity has been entered on the Treasury's
statements.
The latest influx OF metal from
Europe has lifted the total well above
$500, 100000. Reports of shipments
already engaged abroad, but not yet
received, indicate a $4,000. 900 900 to-
tai may be achieved soon.
France and the United States In
the eyes of monetary students. have
been the gold dust twins" of the
world.
Together, before the recent run on
the French franc started. they held
about $4,000. 100000 of the worlds
$4,000 100000 monetary gold supply.
Regarded as Embarrassment
Now France. which in 1882 and 1888
was taking big strides toward the
front, is dropping farther to the rear
and Uncle Sam faces what many re-
gard as an embarrassment of riches.
For possession of huge gold supply
these days is not an unmiXed blessing
they point out.
Secretary Morgenthau has been try
ing to swap some o. the mounting
pile for silver.
But to turn the trans Atlantic metal
tide, driven by fear of currencr re-
valuation, is problem which none
tary strategists so far have no: been
able to solve.
Most monetary experts, watching the
gold charts in Washington, London
and Paris registering currency devalu-
alton expectancies, have concluded
there is no practical course open ex-
cept to let the cycle of devaluation
run its course, after which they as
sumo the world will attempt to recon-
struct its exchanges to avoid d 1ecur-
renee of the Tidal gold waves.
Stree the dollar was revalued at the
end of January, 1884, about $780,
100000 of metal has crowded into the
country from abroad. That about
equals the 1884 output of new metal
and estimated 1885 production.
Nearly 5000, 900 of it has ar
rived since the turn of the year. The
current movement means a drain on
the reserves of the gold bloc central
banks, for it far outweighs new pro-
duction.