Montana labor news., 1936-01-02
Politics Dictate no Aban-
donment of Treasury's
Silver Purchasing Policy
By JOHN MANN,
Federated Press Financial Writer.


NEW YORK.-Wall Street discerns
in the present tack the Treasury has
taken in its silver purchasing policy
one OF the shrewdest moves Of an adj
ministration that has repeatedly demon
strated its political realism.
Recently the Treasury, which was the
big purchaser in the London silver
market, has withheld its bid at the time
OF price-fixing. AS a result the silver
market has broken in all parts Of the
world.
Large silver interests have feared
that the Treasury has definitely aban-
doned the purchasing policy laid down
by mandatory legislation to increase the
silver stocks until they were one-third
OF the gold reserves, or until the price
reached $1.29 an ounce in the world
market. Keen observers are now con
WINGED that there will be no abandon
ment of the policy, and that a jump in
price to S1.20 an ounce is possible and
probable.
Wall Street reasons simply and rea-
listically. The Treasury's program has
taken a major part of the worlds avail
able supplies Of silver out OF the worlds
markets. If the Treasury can shake
out most of the remaining supplies, il
may clean up the situation rather
quickly. When loose stocks are
snapped up, it car hold the price at its
desired $1.29 level with only minimum
purchases-and lay the foundation fol
very substantial gifts to the Demo
cratic campaign chest.
The votes OF the IA senators from
the seven silver states in the United
States are needed very urgently by the
administration when the new Congress
meets. In these states are the follow
ing large companies producing much Of
the nations silver:
Sunshine Mining Co., Idaho.
Silver King Coalition Co., Utah.
Anaconda, Montana.
U. S. Smelling, Utah.
Empire Zinc Co., Colorado.
Bunker Hill and Sullivan, Idaho.
Phelps Dodge Corp, Arizona.
Tintic Standard Mining, Utah.
Hecla Mining, Idaho.
Federal Mining & Smelling, Idaho.
Ii is to aid these companies that the
United States is buying up the worlds
silver. Let us see why.
The results of the buying program
have already lifted the price Of newly.
mined American silver from 64Hc al
ounce to 77Ec, and caused an enor-
nous jump in the production of these
companies. When the Treasury get
the price up to $1.20 in 1886, as Con.
qress has ordered, the gains to tn,
big silver companies will be multiplied
many times again.
The cost to the Treasury Of lifting
the silver companies grose incom,
some $70,000,000 has been considerable
n but when one considers the politi
cal exigencies, one understands tn
ITreasury's complacency, because thes
purchases may provide II Of the mos
important sources OF income to IN
Democratic 1886 campaign chest. TIL
increased profits OF the silver minini
companies represent pure gain handle.
over to them by generous Legislation
and the friendly operation OF the Urea
sury. If some OF it did not return be
fore election time into campaign cot
fers, the failure would be nothing les
than political murder in the first de
lgree.
With most of the major industria
groups aligned against the New Dea
Roosevelt's party is obviously going t
be hard put to build up a campaig
chest. But money can be transferre
from the Treasury to the mining com
p%anies, and then transformed int
campaign contributions with the great
est of ease by means of the New Des
silver purchasing policy.
Hence Wall Street, which under
stands such things, considers it ex
ceedingly unlikely that the silver pur
chasing program OF the administratio
lrrill he n