The Washington times., 1935-08-30
SPECTATORS
PROMOTING
CHANGE
u. S. Rule Necessary,
Moreenthau Holds,
Backing Aims
international News Service

Treasury today was gathering am.
munition to resist the attack OF
the silver bloc" in the next Con.
greSs.
The McCarran bill repeating the
so per cent silver tax and the
naturalization policy, will be
pending. A campaign to stir up
public sentiment for it will be
waged in the next three months.
Policy Is Defended
In q memorandum prepared for
the House Ways and Means Com
mittee, the Treasury vigorously
defended the silver policy, the tax
and restrictions on trading, and
asserted that it has carried out
the mandate of Congress. The
Treasury statement said:
1T is the Wall Street specu.
latOrs who are adversely af-
fected by these provisions. This
is as it should be-.
"They are doing nothing to
help the cause Of silver but are
merely attempting to make an
unearned profit on the Govern
ment's program for the wider
use Of silver"
Up to July 81, 1885, the Treas.
ury had purchased 471,909, 900
ounces Of silver.
Huge Purchases Required
To increase the amount Of silver
to one-third the monetary stock
Of gold, which is approximately
81, 800, 100000 would require pur-
chase Of 1,330,749, ,073 ounces of
silver, Treasury experts said,
adding:
Therefore the acquisitions
during the first 13 months under
the Silver Purchase act con-
stitute IS per cent Of that
amount"
Secretary Of the Treasury Nor.
genthau holds that the Federal
Government must not only own
the gold Of the nation, but also
muSC COQGrOA GQe S11VeE'
Control A Necessity
The memorandum continued:
"It is thoroughly recognized
that, under present conditions,
the United States must have
complete control over the none.
tary supply Of gold.
"NO one can seriously queS-
tion the necessity for this con-
troll. The purpose Of the Silver
purchase act and the silver pro-
gram in general was to give sill
yer an equal dignity with gold
as a monetary metal.
I'm order for the Congress to
retain its power to coin money
and regulate its value, which
has proven so necessary In the
case of gold, there must be re-
served In the Federal Govern
ment q corresponding power to
regulate silver"
The Treasury maintains that
it's policy is designed to prevent
injury to other nations, despite
the protests of China that the
policy is causing her great hard
ship.
Two Committees Probing
Two special Senate committees
today began preparations for a
sweeping investigation Of the
Administrators white metal pol
icy with a view to introducing
silver reform" legislation at the
next session Of Congress.
The committees are under the
direction of Senators Thomas
CDO of Oklahoma, and Pittman
(D.) of Nevada. Senator Pitt
mas committee will meet in
Salt Lake City, the first week
in october, while the Thomas
committee will meet later this
fall, probably here.
The object of both committees
is also to peg the price of silver
at $l.29 an ounce and to see
that the Treasury carries out the
1884 silver purchases act.
Carried to President
They were created after Senator
Thomas told the Senate the "sil.
yer bloc" was unable to get any
cooperation out Of the Treasury
The bloc wrote President RooSe.
welt that the Treasury had failed
to carry out the provisions of the
purchases act and that Secretary
of the Treasury Morgenthau had
failed to give them a satisfactory
reply"
Senator Thomas, silver leader in
the Senate, said he would drop the
white metal issue if the two com.
mittees failed to get results.
He revealed that when he intro
duced his resolution in the Senate
for the special committee, Secre-
tary Morgenthau asked a mutual
friend to try and have him with.
draw it.
Senator Thomas said the friend
was George La Blanc, of the
Estate Administration, Incorpo-
rated, No. / Wall st., New York
city, and that Mr.. La Blanc was
also a friend Of the President.
Senator Thomas said:
"T don't know what MOrgen.
thau was afraid of, as I had
no idea Of investigating the pos
Sibility Of scandal in silver
trading"
Senator Thomas will go to
Mexico soon to study their use Of
silver and NAV visit Canada later.