Evening star., 1935-12-29
us. S|LVERPOL|CYI
OPPOSITION SEEN
Concert of Action Held Pos
Slble as Mexico Sends
Conferee.
BACKGROUND

Strong stlper bloc In Conoress
succeeded last session In forcing
passage OF act directing Treasury
to buy t0orld siluer until price
reaches $I.2S per ounce or reserves
amount TO one-thiTd those of gold.
During recent tDeeks operation
of program has dentorattzed Uorld
sHueT markets, forced closing of
London exchange. upset Chinese
monetary system. Condition tum-
bled stlveT price to 50-cent range.
Meanwhile, tOdr scare and un-
settled currency conditions in
France brought rush OF gold here,
increased spread bet,Ceen gold and
stIuer reserves to about z to I in
stead OF desired to I.
BY the Associated Press.
The possibility Of a concert OF action
by American nations on this Gov
ernment's silver buying program was
seen yesterday by Senator Thomas,
Democrat, of Oklahoma, following ar
rangements for a United States-Mex-
leo conference on the metal here this
week.
Secretary Morgenthau has invited
some members of the congressional
silver bloc to meet with him ami
Eduardo Saurez of the Mexican f1-
nance ministry next Wednesday night.
1t was indicated Morgenthau might
confer with Suarez tomorrow or Tues
day.
THE occasion offers an opportunity
for American countries to get to-
gether and cooperate in carrying out
a silver program" said Thomas, who
is one of the Senate's silver authorities.
Looks at Monetary Angle.
He expressed the view the problem
should first be considered from a
monetary standpoint. with other con-
siderations secondary.
Thomas AID others concerned with
the silver situation previously had
stated their intention Of seeking to
confer with Morgenthau on the Treas
ury's objective" in the silver-buying
program.
Thomas reported that some mem
bers of the silver bloc felt the Treas
ury apparently" was not working
enthusiastically toward the goal set
by Congress.
Thomas said he would initiate soon
an effort to persuade the Treasury 70
issue certificates, backed by silver, to
meet maturing bills, salaries and other
obligations.
In further discussion Of the silver
program, the Oklahoman said the
amount Of money in circulation De-
cember "a was 1858, ,000, 900 more than
on December 26, 1884. He explained
the increase as coming from certifi-
Gates now in use against the silver
purchased.
Mexico Made Initial Move.
In the absence of some statement
from the Treasury, it was generally as
sumed here the Mexican government
had made the initial move toward this
weeks silver meeting.
This Governments silver buying pro-
gram has had some effect on Mexican
currency. When rising prices for the
metal prompted some melting up Of
silver coins, the Mexican government
moved to put paper money rather than
more silver into circulation.
Secretary Morgenthau made known
recently that much Of the Treasury's
recent silver purchasing had been done
in Mexico and South America. The
United States bought around 72000,-
600 ounces taken from Mexican mines
in the past year, he said.
At the same time, 1t was indicated
here that as much as possible would
be bought from Latin American mar
kets and from other countries with
which this Government might negoti-
ate reciprocal trade treaties.
SuareE will be met upon his arrival
here by Edward Re1d, chief Of the
State Departments Mexican division.
State Department officials said,
however, that this was a diplomatic
courtesy and did not mean necessarily
that Secretary Hull would be repre-
sented at the Treasury conference.