AMERICA RETALIATES

Pahiatua Herald, Volume XLVII, Issue 13819, 29 March 1938, Page 5

AMERICA RETALIATES

SILVER AGREEMENT VOIDED REFUSAL TO BUY FROM MEXICO Uni Led Press Assn. —JBy Electric Telegraph—Copyright. NEW YORK, March 27. Air. Alorgenthau, Secretary to the Treasury, has officially announced the abrogation of the New York agreement to purchase Mexican silver. He declined either to confirm or deny that it resulted from the oil expropriation, says the Washington correspondent of the United Press.

The agreement will terminate on April l. The Treasury declined to discuss the matter, saying a formal announcement may be expected to-mor-row. The silver agreement has been effective since January 1. 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, U Mr. Cordell Hull believing it was the largest single contribution to the good neighbour policy. __ The action is not expected to have immediate or serious effect in Alexico, although it will force it to turn t° London and the World market. It is believed possibly that large-scale Mexican offerings might unsettle the market and depress the price. There is a possibility that th e _ United States will increase its sTlver purchases from Canada, which at present are 1,200,000 ounces monthly under an agreement.