PURCHASE OF SILVER

Nelson Evening Mail, Volume LXXI, 29 March 1938, Page 5

PURCHASE OF SILVER

AGREEMENT WITH MEXICO ABROGATED BY UNITED STATES (United Press Association—By Electric Telegraph—Copy right 1 (Received 29th March. 9 a.m.) NEW YORK, 27th March. The Secretary of the Treasury, Mr H Morgenthau, officially announced the abrogation of the agreement to purchase Mexican silver. He declined J cither to confirm or deny that it re- | suited from the oil expropriation, says i the Washington correspondent of the | United Press. The agreement will terminate on Ist April. The Treasury declined to disj cuss the matter, saying a formal ani nouncement may be expected to-mor-

The silver agreement has been effective since Ist January It was a major factor in maintaining the stability of Mexico’s currency.

! Officials pointed out that the United ! States made the agreement strictly on , a “favour basis,” the Secretary of State. Mr Cordell Hull, believing it was the largest single contribution to the goodneighbour policy.

The action is not expected to have an immediate serious effect on Mexico. I although it will force it to turn to ; London and the world market. It is • believed possible that large-scale Mexican offerings might unsettle the market ' and depress the price.

There is a possibility that the United States will increase its silver purchases from Canada, which at present are

1.200.000 ounces a month under a; agreement.