The Western news. [volume] (Libby, Mont.) 1933-current, 1938-11-10
Noio Treasury Is Buying
Direct From Producers

Direct From Producers
No one hesitated much about this
policy up until last March when
Mexico seized the OIL wells owned
by British and American interests,
valued at about $4,000, 900 for the
American property and $3.50, 600, 600
for the English On March 81, this
year, shortly after this seizure, the
treasury here formally announced
that it had abrogated the agreement
with the Mexican government under
which it was buying this Mexican
silver. There was general public
approval, not only because most
folks did not see why this govern
ment should continue to subsidize
Mexico after such a seizure of
American property. but actually
most folks could not see why this
government had subsidized Mexico
in the first place.
Actually, this government has
. been buying Mexican silver at an in
creased rate since this March 81
announcement. The only difference
is that the transactions are no long
er formally handled with the Mexi-
can government. Instead the pur-
chases are made from the produc-
ers, though of course after they have
paid the eight cents an ounce tax to
the Mexican government.
In March, the last month under
the agreement, Mexican silver
amounting to 5,08a, 1897 ounces was
bought by the United States treas
ury. In April. the first month fol-
lowing conclusion of the agreement,
Mexico sold our treasury 5,061 1903
ounces. In May. this rose to 5,439,-
ga ounces, and in June to 1898, 978
ounces.
Inquiries at the treasury here are
answered by the statement that the
treasury is acting under orders
in buying this silver. Inquiry as
to where the orders come from are
answered by the statement that no
reply will be given, but the hint is
thrown out that after all there are
only two places the orders could
come from. One is the White House,
the other is the state department.
Little Hope for Loosening
Burden Of armament Costs
Optimism about the much talked
about armament limitation confer
ence, with view to removing the
terrific burden of armament costs
from the various peoples of the
world, has little foundation in any,
thing that Washington diplomats
can see or understand.
tt was no surprise to them when
President Roosevelt recently admit
ted at press conference that the
expenditures for the navy next year
will be greater than this year. That
has been known to everyone con-
neeted with or interested in the
navy.
It's real Importance lay in the fact
that there had been some who
thought the United States might
make gesture. in the hope that the
other nations would follow it. Pres
ident Roosevelt does not believe
such gesture would be effective
He believes furthermore that it
would be positively dangerous for
the United States to relax in arm
ing itself. The more powerful in
modern war weapons and readiness
to fight the United States is, in the
Presidents opinion, the less danger
there is that some other nation will
pick a quarrel with us.
There is no suspicion at the state
department that any particular
country wants, at this time, to pick
quarrel with the United States.
Foreign Potoers Straining
To Increase armament
Actually, however, the big point
that makes unlikely the success oil
any armament conference which
might be held, is that the powers
that seem to American eyes already
armed to the teeth are straining
every nerve to increase their mill
tary power. Although the four-pow-
err group at Munich dispelled the
war, the armament race by Britain,
France, Germany, Italy and Russia
has increased instead of slowing
down.
Since that Munich discussion
France has publicly announced ire
mendous increases in her defenses
against Germany.
Russia has said little about her
preparations. but it is known here,
ns...-sss7ar,s by shrewd diplo-
W mats, that Russia
grimly intends to
have an air force