Evening star., 1937-07-18

u
* express the appreciation of
the Chinese government
and the people of China,
the Chinese minister Of finance came
in person to the United States to
conduct the negotiations which have
Just been concluded"
This quaint and pleasing bit of
Oriental courtesy, appended to a
statement released by the Treasury on
July 9, marks another little chapter
in our absurd silver policy. China, IN
the opinion of Mr.. Kung, had too
much silver reserve" and not enough
gold reserve, so he brought the silver
to open-handed Washington.
To those who do not follow the
item silver" in the Treasurys daily
statement, the announcement of new
agreement by this Government to ab-
sorb more of the Chinese metal in
exchange for gold, serves as a pointed
reminder that the silver purchase act
is still on the books. Although the
Treasury's purchases of the white
metal have been taking place all along
with clocklike regularity, the absence
of monetary crises in China have
lulled the public into forgetfulness
concerning the existence of very
costly and futile policy concocted as
political soothing sirup three years
ago.
1t is regrettable. but true that this
Wasteful policy Will remain on the
statutes as long as the public does not
bestir itself and advise Congress to
repeal it. If we had a tax called
| Tax to support the silver program" ="
the public would writhe in anger We
have such tax but it is invisible.
So the public Is apathetic
Treasury Acts on Initiative.
AS will be recalled, the silver policy
enacted by Congress IN 1884. requires
| the Treasury to build up the silver
portion of our monetary metallic re-
serves on one-to-three basis with
gold. The Treasury is directed to
carry out this policy. OF course, no
time limit or rate of activity is set.
/ The Treasury would be we'll within its
rights to engage in little silver sit
down or lie-doWn strike. if it wished to.
For some reason, unstated. it evidently
prefers not to do so. and silver is being
bought right along in sufficient GUAM
tity to support the So-called world
price at As cents per once. This is a
very profitable policy for Mexican.
Canadian and other foreign producers.
even though it is not so profitable to
them as is the Governments policy
of paying 7717 cents to American
| producers.
The cost Of these purchases of a
useless metal does not appear on the
| budget, since the infowing silver is
simply converted into new currency. II
| is not paid for in old currency Hence
most people think it costs us nothing
But, although not appearing on the
| budget. the millions of real dollars
received by silver sellers do not come
out Of thin air. No, they come out of
the income and pocketbooks Of the
! American public. It is regretta bic
fact that, almost without exception
! the people who are invisiblv taxed fo,
| this bonus to foreign and domestic sill
yer producers and other sellers of the
metal. have no conception that they
are paying for the bill That is the
pity of it
Worse Than Useless.
Here We have just witnessed an
instance where, after recently turning
over to foreigners American goods OF
shares in the ownership of American
companies in exchange for gold We do
not need. We turn around and give
away the gold in exchange for a
metal We could not sell in a lifetime
In fact. We make that useless metal
into reserve for paper money under a
law which prevents us from ever SELL
ING it or from ever Withdrawing the
silver certificates inflated into cir