Evening star., 1935-04-25
Treasury Intent on Building
Up Stocks to One Third
Ratio With Gold.
GOVERNMENT FAR SHY
OF rs PER CENT BASE
Morgenthau Points Out New In.
crease Is in Accordance
With 1884 Act.
By the Associated Press.

BY the Associated Press.
Secretary Morgenthau said today the
Treasury would continue to buy silver
until it reached sl29 an ounce. or until
Treasury stocks equaled one-third Of
the total gold.
The Treasury head said last nights
action in boosting the Federal price
for domestic mined metal to 77.57 cents
an ounce, as well as previous actions
in elevating the price, was simply
carrying out mandate Of Congress.
Unless total stocks reach the stipulat-
ed point first, price boosts are slated
to continue until the world price
reaches sl.29.
Morgenthau was referring to the
silver purchase act passed last Sum-
mer, which required that the bullion
base should be in the proportions Of
IS per cent gold and 25 per cent silver.
Far Shy Of Silver Base.
He pointed out that there was no
time limit set for building up the
stocks to the required levels.
Treasury statistics show the Gov
eminent still is far shy of its required
30 per cent silver DdSe.
The latest Treasury statement, as
of April %, reveals that silver stocks
of $4,000, ,046,727 would be necessary
to equal one-third of the gold assets
of S8.700. .l40.l82 on that date AS
against this the Treasury had stocks
Of only s931,4l4,722. or 81 ,968, ,632 ,0O5
short of the required total.
The Treasury's silver assets con-
sisted Of s80l .891.201 in silver and
silver dollars. listed as silver assets:
s4,253,60l of subsidiary silver coin.
which means dimes, quarters and half
dollars; silver bullion of cost value
Of STA 566.8 895. and silver bullion with
a recoinage value of $40. 0.7O3025.
Silver Senators said Morgenthau's
announcement was in compliance
with the silver purchase act
Under it, they pointed out again.
the Treasury is compelled TO continue
buying silver until the price reaches
S1.29 an ounce. or until the sill
yer monetary stocks IN the Treasury
are at ratio Of to with the gold
monetary stock.
! Though the Treasury has discretion
in the time and manner of the pur-
chaSes. the law is mandatory In its
ultimate effect.
Silver Senators said the only un-
certainty was the possibility that
/ Congress might change its mind.
They did not foresee any such change.
In fact, Senator Wheeler, Democrat
| of Montana, predicted that the price
Of silver would continue to rise after
reaching the American statutory price
of Sl29 an ounce. He would like to
see it go to price representing ratio
of Is to l with gold. which. at the
present price of gold. would be above
81 an ounce.
China Shows Concern.
Senator King, Democrat Of Utah.
said, on the other hand. that if the
price went above S1.29 the Govern
ment would begin to sell. but would
always hold the price up to s1.29 un-
less the law was changed.
Meanwhile the continued concern
of China over this Governments silver
policy was informally given to Secre-
tary Hull by the Chinese Minister, DR..
SEE That Government has previously
protested the policy as detrimental to
Chinese economic affairs.
China is now faced, SEE said, with
the same situation as existed in the
United States in 1888, but has not the
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