Evening star., 1942-05-08
Silver Needs Boosted
Sharply by Use in
War Production
Arms Consumption
Equals Industrial
TotoI for 1899
BY GARETH MUCHMORE,
Associated Press Business Writer.


NEW YORK, May s.-silver bull
lets in legend won the battle and
silver. in weapons Of another form,
is helping Americas fighting men.
As much silver Is going into
planes, tanks, ships, trucks, guns
and shells and their manufacture
this year as all United States in
dustry used in 1899, reliable trade
source estimated today, placing the
figure at 10000. 900 ounces.
The substitution of silver for cop
per, nickel, tin, aluminium and other
war-needed -rusting metals by
civilian industry also has skyrock-
eted demand from non-war manu-
facturers.
The War Production Board, In
It's order last week banning iron and
steel from more than 400 common
civilian articles, specifically per-
mitted the use of silver, or Of gold,
as . substitute.
American factories. q large bull
lion dealer estimated, could use 140,-
900 900 ounces OF silver prodtably
this year at current prices-if they
could get it. The total supply for
the year, however, was figured ut
100, 900 900 ounces.
Rationing Necessary.
This shortage Of supply compared
with demand has made necessary,
trade reports said, an informal ra-
tioning or doing out Of silver to
users because 1t would be impossible
to supply the metal they want ut
prevailing prices.
Paradoxically, the trade points
out, the United States Treasury owns
more than 5000, ,o00, 900 ounces Of
silver.
The catch. silver men say, is .
three-way price policy, explained
this way:
Foreign silver brings IS cents an
ounce at the Treasury, and industry
pays q fraction Of q cent more to
obtain its requirements.
Domestic silver, under the law
passed July s, 1899, must be bought
by the Treasury at Till cents an
ounce. Such purchases In 1o41 were
estimated at about 70, 0,000, 900 ounces
Under this law, the Treasury can
not sell that same domestically
mined silver for less than $1.2o an
ounce.
Thus foreign mined silver, mostly
from Canada, Mexico and South
America since the war disrupted
other trade routes, has been Amer
lean industry's only major supply.
Federal price freezing, some sources
believe, might prevent industry
from offering more for silver In an
effort to encourage producers.
The growing demand has brought
discussion vf ways by which the
Treasury could release some Of its
silver as q loan" to industry, to
be returned or replaced after copper
and such metals again become avail
able.
Power Loan Granted.
AAAC AASoSAAy 06ACCA W kOoAA 1VsOOV
tons Of silver to the power industry
for use in bus-bars, through which
electricity passes on its way from
generators to power lines. Now the
talk has turned to loans for other
industrial purposes
The Treasury could farm out" a
good deal OF its silver, by the way,
without affecting the amount OF sill
yer coin in circulation. 1t has on
hand more than 480 ,0OO, 900 silver
dollars and millions of dollars more
in subsidiary coin in its vaults.
Aside from coinage use, Handy IL
Harman, New York bullion dealers,
estimate the United States used
nearly 10000, 900 ounces of silver in
l94l. almost twice as much Is in
1910. and credited the rise directly
and indirectly to the war. Use of the
white metal still is increasing.
Silver alloys have replaced brass