STATE CONTROL OF SILVER

Timaru Herald, Volume CXXXVII, Issue 19802, 18 May 1934, Page 9

STATE CONTROL OF SILVER

MOMENTOUS MOVES IN AMERICA PRESIDENT ROOSEVELT’S BOLD SCHEME United Press Association—By Electric Telegraph—Copyright (Received May 17. 7.10 p.m.) WASHINGTON, May 16. The silver legislation for this session was decided upon to-day after a twohour conference between President Roosevelt and the silver bloc in the i ! Senate. 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 the tentative underj standing was reached with the silver ; | group a fortnight ago. The plan calls | for the permissive nationalisation of j the domestic stock of silver, and a j mandatory declaration of policy • that | silver shall be purchased until it conI stitutes 25 per cent, of the metallic j monetary basis. ! The silver group was jubilant after ! to-day’s talk, and members reported i that the proposed measure probably would be labelled an Administration Bill. The only question left for consideration, it was said, was whether there should 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 I they have indicated that they are willing to accept it if the Secretary to the Treasury (Mr Harry Morgenthau Jnr.) and the President insisted. Silver certificates would be issued upon the metal which must be required to bring i the 25 per cent, ratio. Silver now conj stitutes about 12 per cent, of the re- | serve, though it was more than 25 per j cent, during the Administration of j President Cleveland and President > Theodore Roosevelt. I One Senator said that silver would ibe bought at the market price, but that it would be given a value of the dollar 29 cents an ounce by the Treasury, and one dollar silver certificates would be issued on each ounce. The Treasury would take the profit resulting. The declaration of policy is to contain an 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 the dollar 29 cents before the reserve is acquired, the Treasury would be authorised to stop buying and sell silver, if it saw fit, until the price fell below the dollar 29 cents. VI