Evening star., 1939-07-10
Foreign Silver
10 35Cents,
"A New Low
Treasury Move to
Stabilize World
Rate Is Seen
By the Associated Press.

l
The Treasury, while cutting its
price for foreign silver to IS cents an
ounce, the lowest it ever paid for
bullion, apparently acted today to
stabilize the world silver market.
The Treasury cut its offer from
36.75 cents today, but declined to
follow the reduction which had
brought the free silver market in
London down from 1851 to 1884
cents over the week end.
| Because it costs only a half-cent
an ounce to ship silver across the
Atlantic, the Treasury action was
expected not only to arrest the de-
Ginning London price, but perhaps
bring 1T up little tomorrow.
In December, 1892, the Treasury
could have bought silver bars at the
modern record low price of 24.25
cents an ounce, however. Likewise,
If 1t had bought any silver in MAY,
1885, 1t would have had to pay a
modern record high of 81 cents per
ounce.
The 35-cents- ounce price was
cents less than the Treasury paid
for more than year prior to June
26, when the Senate voted to bar
further foreign purchases.
The proposed ban, while eliminated
later by a conference committee on
the monetary bill, prompted a series
OF price cuts.
With the London market price at
1884 cents, and since it costs onlv
| about one-half of cent per ounce
, to ship silver across the ocean it
became profitable to buy silver in
London and ship it here for sale to
the United States Treasury.
For about four years before June
26, the Treasury had virtually die
tated the world price of silver. by
holding its offering price steady,
regardless of what the London price
was. Consequently, the London
price usually stayed a fraction Of
cent below the Treasury price.
Oil Accord Handicap Seen.
Secretary of State Hull was re-
ported, meanwhile, to believe that
discontinuance of the Treasury's
foreign silver purchases might
hamper Mexican n-American oil ne
gotiations
Secretary Hull will testify before a
Senate banking subcommittee some
time this week on bill by Senator
Townsend, Republican, of Delaware
to prohibit foreign silver buying.
The Senate wrote Mr.. Townsend's
proposal into the recent monetary
bill but it was deleted before the
measure was enacted.
| 1t was reported authoritatively
that Secretary Hull would tell the
committee that termination of the
silver buying might imperil the ad-
ministration's good neighbor" pol
icy in Latin America and might add
many complications to efforts to
settle claims for Mexico's seizure Of
American oil holdings.
Reich Trade Data Expected.
He also was expected to offer
figures regarding Germany's trade
with Mexico, and to argue that an
end to purchases of Mexican silver
would tend to increase that trade
to the detriment of the United
States.
In statement yesterday, Sena-
tor Townsend said that only about
one-flfth of the foreign silver al
ready acquired by the Treasury has
come from Latin American coun-
tries. The Latin American pur-
chases have totaled s237 900 900, Sen
ator Townsend added, of which
$2l7 900 900 has come from Mexico.
Senator Townsend attributed the
policy of foreign silver buying to q
desire for currency imitation rather
than to any effort to promote a good
neighbor' policy.
Roosevelt Seeks Its Defeat.
Authoritative sources said Presi-
dent Roosevelt recently advised
Democratic Leader Barley that
every effort should be made to de-
feat the Townsend bill
Vice President Garner, on the
other hand, was understood to favor
discontinuance of the foreign pur-
chases.