AMERICAN SUPPORT

Evening Post, Volume CXX, Issue 142, 12 December 1935, Page 11

AMERICAN SUPPORT

UNEXPLAINED SUSPENSION

KEVISIOX OF POLICY?,

United Press Association—By Electric Telegraph—Copyright. NEW YORK, December 10. For some motive which the Treasury at Washington refused to elucidate, the Government today suspended its policy of supporting the, silver market as a result of which world-wide trading in that commodity became chaotic. It is reported that the Treasury may resume its buying activities within a few days, but meanwhile many rumours are afloat to.the effect that the Administration is planning to revise its silver programme. The law merely provides for the accumulation of metal to continue until a ratio of 25 per cent. with .gold stock is reached, with no specific time requirements. It is thought possible that the Administration fears that steady buying will raise the price sharply, and is inclined to let the price of Silver drop a little from time to time to make possible advantageous buying. :

On the other hand, Senator Thomas, leader of the silver bloc in Congress, hailed the world collapse of silver, particularly on. the London market, as affording- America 'an opportunity to take the lead in bringing about a monetary stabilisation conference.

"Silver-using countries are wholly at the mercy of the economic power of the United States," he said. "Hence, whatever we do with silver will be final so far as such countries are concerned, because we have the lion's share of the world's gold and the resources to acquire any or all of the world's silver. We are in a position where we not only can,-but must, take the -lead in bringing about stability in the money system of the world."