SILVER PRICES

Evening Post, Volume CXXI, Issue 1, 2 January 1936, Page 3

SILVER PRICES

CONCERTED ACTION LIKELY

U.S.A.-MEXICO TALKS

United Press Association—ll.v Electric Tele-

graph—Copyright. (Received January 2, noon.) NEW YORK, January 1

The Washington correspondent of the ''New York Times" says: "A prelude to possible concerted international action in regard to world silver prices was the interpretation placed today on the conference between the Secretary of the. Treasury (Mr. Henry Morgenthau, jun.) and the Mexican Secretary of the Treasury (Senor Suarez). Each was accompanied by an imposing number of experts. Mr. Morgenthau, moreover, will give a dinner to Mexicans tomorrow. It will be attended by Senators known to be interested in' the silver question.

Considerable discussion has developed here concerning the possible repeal of the Silver Purchase Act, 1934, which some Government experts believe has failed to accomplish its purpose. In order to bring about a ratio of silver supply equal to 25 per cent, of the gold stocks, the Treasury would have to purchase between 1200 to 1600 million additional ounces of silver, and it is questioned whether the Treasury is in a position to contemplate such purchases.

The United States Treasury for the ten months ended May 31 acquired 421,497,000 ounces of silver, or 265,000,000 ounces more than the total world production during that period. Mr. Morgenthau,. in making this announcement in June, said the statement showed that the Treasury, was still more than two billion dollars short of the silver ratio of 25 to 75 of gold provided under the Silver Purchase Act. For some motive which the Treasury; at Washington refused to elucidate, the United States Government, on December 10, suspended its policy of supporting the silver market, as a result of which world-wide trading in that commodity became chaotic. It was reported that the Treasury might resume its buying activities within a few days, but meanwhile many rumours were Eifloat to the effect that the Administration was planning to revise its silver programme. It was thought possible that the Administration feared -that steady buying would raise the price sharply, and was inclined to let the price of silver drop a- little from time to time to make possible advantageous buying. On the other hand, Sen-itor Thomas, leader, of the silver b?.* in Congress, hailed the world colla * of silver, particularly on the London market, as affording America an opportunity to take the lead in bringing about a monetary stabilisation conference. "Silver-using conn tries . are wholly at the»mercy of the economic power of the-United States," he said.