Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-10-18
WAR CRISIS HITS
US. S|LvERPOL
Rush OF Gold From Europe
Makes Buying Hard to
Keep Up With.
BY the Associated Press.

BY the Associated Press.
Europe's crisis has had a queer.
nlghtmarish effect on the Govern
ment's silver-buying drive.
Like men on fast-moving tread
mill. the Treasury's silver purchasers
now have to run if they want to stay
where they are.
A rush Of war-scared gold from Eu-
rope to the United States-somethina
unforeseen when the silver policy was
laid down by Congress-is responsible.
The law set forth program under
which the Treasury was to buy silver
until there was one dollar of silver
for every three of gold In the Nations
monetary stocks Cor until the price
of silver rose to $1.29 an ounce).
So the Treasury started buying hun
dreds of millions of dollars worth Of
silver, only to find that the gold stock,
instead Of remaining fairly stationary
SO silver could catch up with its APP
pointed position. increased enormously
as a nervous Europe shipped its gold
here.
SAsOsVsVVvgVVV ShNCI w Ehdnu.
At the time the silver purchase act
was passed, the Government had
about $1,000 100000 in gold and s915,-
100000 in silver, or II per cent a.
much silver as gold.
Since then, according TO the Treas
ury's daily statement. the gold stocks
have increased to s9542 100000 and
silver to about s1.67o, 900 600. The
| percentage of silver to gold has risen
from IL per cent to IT'S per cent,
but to reach the laws objective Of
1878 per cent, the Treasury must still
purchase almost as much as in the
beginning.
If the gold stock had remained
where it was when the silver purchase
law was enacted, the Treasury would
have had TO acquire $3.50 100000 Of
silver to reach the laws objective. To-
day, even with the large purchases
that have been made, the Government
is still 81 1850 900 600 short of the goal.
Despite the Treasury's acquisition
Of something like s750,000, 900 in ST.
yer over a period of Is months, many
Of the silver Senators who fought for
the purchase act are dissatisfied.
Their real objective was not so much
to acquire silver as to force the price
up to the statutory level of s129 an
ounce.
Price Virtually Pegged.
They were elated as the purchase
program forced the world price Of the
metal up from below so cents to about
80 cents, but since then the Treasury
has virtually pegged the price at about
IS cents, or Just about half the none
tary price.
Treasury purchases Of silver are not
made public at any regular interval. so
an exact total on the amount held to-
day was not available The last OIL
cial announcement, March 20, said
the Treasury had 81 ,445 900 600 Of the
white metal. Prom the daily state
ment. however. it can be roughly
computed that the silver stock is now
valued at close to the Sl,670,00O, 900
figure, representing acquisitions of
about s225. 900. 900 since that date.
At the beginning Of this year the
silver held was 81 254. 900 900, or about
Is per cent of the $500, 000, 900 Of
gold.
On September /, just before the re-
cent gold rush, the Government held
81 -524 100000 of silver to SO 200 ,o0O.-
900 of gold, or about II per cent.
Since then silver stocks have increased
sl40. 900 900, while the gold total has
jumped up more than $500, 900 900.