Bimetallism

Manawatu Times, Volume LIX, Issue 7473, 25 May 1934, Page 4

Bimetallism

Silver Takes ils Place Side by Side With Gold BILL BEFORE UNITED STATES SENATE United Press Association—By Electric Telegraph—C opyright. WASHINGTON - , May 22. President Eoosovelt recommended to Congress on Tuesday that it declare the United States policy to he "to increase the amount o.t’ silver in our monetary stocks with the ultimate object of having and maintaining ono-fourth of their monetary value in silver and three-fourths in gold.” The policy would be mandatory, The President, in fulfilment of hi® agreement with the Congressional silver advocates, said that ho should bo " authorised and directed to make purchases oif silvor necessary to attain this ultimate objective.” Payments for the present silver holdings in the United States will be limited to 50 cents an ounce and the profits so made would be taxed 50 per cent.

Pointing to n world-wide bi-metal agreement a 3 an ultimate solution of the silver problem, the President revealed that he had already begun negotiations with neighbouring countries “in regard to the use of both silver and gold, preferably on a co-ordinated basis, as a standard of monetary value/:' ’

Senator Pittman introduced the silver legislation in the Senate. He declared that it represented the culmination of long years of effort to give silver e more prominent place in the monetary picture. An appropriation of 500,000 dollars is authorised to carry out the purchase’ and nationalisation programme, and such additional sums annually as are needed. A one-clause Bill authorises the President to take over the nation’s monetary silver stock in a manner similar to that in which gold was taken, and tho Secretary and Treasurer would be "authorised and directed” to purchase silver at home and abroad at such rates, times and terms as ho may deem reasonable and most advantageous to the public interest. Purchases on the domestic market will be limited to 50 cents an ounce on stocks held on May 1. Whenever the market price exceeded tho monetary value or when the monetary stocks woro greater than the 25 per cent, ratio, the Secretary could sell silver. He would further be authorised and directed to issue silver certificates in a face amount not less than the cost of all silver purchased. These would be legal tender, redeemable on demand in standard silver dollars, and the Secretary would be authorised to coin silver dollars for such redemption. He would further be authorised, with the approval of the President, to "investigate, regulate, and prohibit by licence or otherwise, the acquisition, importation, exportation, or transportation oi silver. ”

Under the nationalisation clause the President, when in his judgment action is deemed necessary to regulate tho Value of money, "may” by Executive ordor require the delivery to the United States mints of "any or all silver by whomever owned or possessed.”