The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1943-07-20

profit of SOL million, which worl,
be dandy if true. But if YOU thinl
this thing through, it figures GU
like this:
The free silver which the Treas
ury owns is wanted for use as E
copper substitute for heavy electri.
cal conductors in war plants.
The Treasury was willing to sci
this free silver at its cost price O
less than SO cents an ounce. If tn,
Treasury had sold at that price, thi.
would have been the cost which
the war contractors using the silve,
would have entered on their books
in billing the government for the
war materials they manufactured.
Since the silver must now be sold
at II cents, the manufacturers us
IN gthe silver must buy at the
higher price, enter the cost at the
higher price, bill the government
for the war supplies they make at
the higher price, and be paid this
higher price by the U. S. Treasury.
All the Treasury's potential profit
on the original sale of the silver
to the war industries is thus wiped
out, and the cost of the war to the
taxpayers is just that much greater
The net effect Of this manipula-
ton, therefore, is to take off the
market all the Treasurys stock of
free, less expensive silver.
PRICE CUT THREAT REMOVED
The silver block has thus re-
moved the threat that the Treasury S
stock of free silver, acquired over
the years at an average cost of
less than so cents an ounce, will
be used to force down the price of
newly mined domestic silver below
the present ceiling of II cents an
ounce.
The author of the act putting
over this silver price rise is Senator
Theodore Francis Green of Provi-
dence, r. I. If the interest of New
England statesman in silver at first
seems remote, remember that the
jeWelry manufacturing and the sill
yer arts and crafts industries are
centered in Rhode Island and Con-
necticut. The war has hit them hard.
War Production Board imitation or
ders have restricted the use of silver
and other precious metals for non
essentials like jeWelry and sterling.
Spokesman for the industry, made
up of relatively small manufacturers,
have been in Washington to potest
that they were being strangled,
forced out of business.
Senator Green makes clear that
the silver manufacturers are entirely
patriotic in their desires and mo-
tives. They don't want any silver
that can be used in war industries.
But if there is any left over
STILL BACKS UP YOUR DOUGH
1t was Senator Green's job to in
crease the supply by his bill ito
authorize the use for war purposes
of silver held or owned by the
United States" The bill provides for
considering these stocks of silver in
war industry use as part of the
required backing for silver certifi-
Gates. Instead of burying the silver
bullion in the vaults at West Point,
it's made into bus bars to carry
electric current, but it backs up
your paper money just as legally.
And all the rest of the Treasury's
silver can be sold at Till cents per
ounce.
When Senator Green first intro
duced his bill in January, it pro-
vided that the free silver could be
sold at so cents. Before the bill
could get out of committee, how
ever, Senator Green had to agree
to have the price raised to the
aforementioned II cents plus. Sen
ator. Francis Maloney of Meriden,
Conn.-another good silver town
managed the bill before the Senate
Committee on Banking and Cur
rency, and on the floor of the Sen
ate. None of the members of the
western silver bloc had anything to
do with it. Oh, no.
"The silver producers want to
keep the price at II cents for senti-
mental reasons" says Senator Green
They feel there's a certain psy-
Geological value in keeping the price
at that figure, and it really isn't
as important as you think. The
Treasury makes profit, and it
really doesn't make much differ
ence which pocket the Treasury
takes its money into and pays it
out Of"
But Just watch how tough it's
going to be to get that price or
any other price down, once 1t has
been legally raised.