SILVER POLICY

New Zealand Herald, Volume LXXI, Issue 21803, 18 May 1934, Page 9

SILVER POLICY

ROOSEVELT'S SCHEME BILL TO BE FRAMED PURCHASES OF THE METAL NATION'S MONETARY BASIS By Telegraph—Press Association—Copyright (Received May 17. 5.45 p.m.) WASHINGTON, May 16 The introduction of silver legislation this session was decided upon to-day after a two hours' conference between President Roosevelt arid the silver blotin the Senate.

The President is prepared to send a special message to Congress within a day or two recommending a two-point programme, which he has had in mind since the tentative understanding reached with the silver group a fortnight ago. His plan provides for the permissive nationalisation of the domestic stocks of silver and a mandatory declaration of the policy that silver shall be purchased until it. constitutes 25 per cent of the metallic monetary basis.

The members of the silver group were jubilant after to-day's conference. They stated that the proposed measure probably would be a Government bill. The only question left for consideration, they said, was whether there shall bo a tax on the profits of those who hold the domestic stocks. The majority of the silver group said they would like to see the tax proposal eliminated, but they indicated that they would be willing to accept it if the Secretary of the Treasury, Mr. Henry Morgenthau, and the President, insisted.

One Senator said silver would be bought at the market price, but would be given a value of one dollar 29 cents an ounce by the Treasury, and silver certificates of a face value of one dollar would bo issued on each ounce. The Treasury would tako the profit resulting.

The declaration of policy is to contain the following assertion: —"The Secretary of the Treasury is hereby authorised and directed to make the necessary silver purchases. Should the world price of silver reach one dollar 29 cents before the reserve is acquired the Treasury will be authorised to stop buying and to sell silver if it sees fit until the price falls below one dollar 29 cents."