SILVER GROUP JUBILANT

Evening Star, Issue 21723, 18 May 1934, Page 7

SILVER GROUP JUBILANT

AMERICAN LEGISLATION PROMISED THE PRESIDENT'S PROPOSALS Press Association—By Telegraph—Copyright . WASHINGTON, May 16. Silver legislation this session was decided upon to-day after a two-hour conference between President Roosevelt and the Senate silver bloc. The President is prepared to send a special message to Congress within a day or two recommending a two-point programme that has been in his mind since a tentative understanding was reached with the silver group a fortnight ago. The plan calls for permissive nationalisation of the domestic stock of silver and a mandatory declaration of the policy that silver shall bo purchased until it constitutes 25 per cent, of the metallic monetary basis. The silver group was jubilant after to-day’s talk, and members reported that the proposed measure probably would bo labelled an Administration Bill. The only question left for consideration, it was said, was whether there would be a tax on the profits of those holding domestic stocks. The majority of the silver group would like to see the tax proposal eliminated, but indicated that they were willing to accept it if the Secretary to the Treasury (Mr Morgenthau) and the President insisted that silver certificates would be issued upon the metal which must be required to bring the 25 per cent, ratio. Silver now constitutes about 12 per cent, of the reserve, though, it was more than 25 per cent, during the administration of Presidents Cleveland and Theodore Roosevelt.

One Senator said that silver would be bought at the market price, but that it would be given the value of Idol 29 cents by the Treasury, and onedollar silver certificates would be issued on each ounce. The Treasury would take the profit resulting. The declaration of policy is to contain the assertion that “ the Secretary of the Treasury is hereby authorised and directed ” to make the necessary silver purchases. Should the world price of silver reach Idol 29 cents before the reserve is acquired, the Treasury would be authorised to stop buying and sell the silver if it saw fit, until the price fell below Idol 29 cents.