SILVER DOLLAR

Hokitika Guardian, 23 December 1933, Page 5

SILVER DOLLAR

NEW AGREEMENT

ROOSEVELT’S MONETARY MOVE.

(United Press Association —By : Electric Telegraph—Copyright;)

NEW YORK,. December 22,

Present Roosevelt; to-night formally ratified the London silver agreement, .and ordered the Government to purchase the metal at 64..} cents per ounce, which ishalf the ; legal price, and about nineteen 'cenis an ounce above ,the current market price. “This proclamation,'” ■ said 'the President “is in accordance with ail Act of Congress. It opens our minis to the coinage o.f standard silver dollars from the silver hereafter produced in the /United States, or in its posses-' siqns.” ' >

Half of the silver presented will be coined at a statutory price of 1 dollar 29 cents an ounce. The remaining half will be “surrendered to the Treasury as seigniorage and to cover the usual charges and expenses.” It is estimated that about twentyfour . million ounces of silver will be purchased annually'; This /figure approximates the amount that was stipulated in the London Treaty which America will 'buy annually. If. is understood that Mr Roosevelt , decided to ratify the agreement following on India’s acceptance.

The"’ silver advocates are jubilant over - the President’s action. Senator Pittman, the author of the Silver •Agreement, declared that exports from the United Slates to the Oriental and other countries, with a silver base, will be greatly increased. He said: “The action of the United States will, fee followed by Canada, Australia, Mexico and Peru. Undoubtedly, it w'll stabilise the price of silver throughout the world at 64} cents, until some further action is taken to raise it higher.’’'"

Observers are agreed that -the President has now done much to muzzle the Congressional inflationists. The foreign exchange circles have been daken completely by surprse .by. President.-Roose-velt’s remohetisatldii Of silver announcement. One. si'ver expert declared that since the United States produces, currently-, ..only about one-sixth of the world’s production of silver, the effect of the silver, purchases upon the world price. ~ likely to be no greater than have been the effects- of the Reconstruction Finance Corporation’s purch a so of newly-ininM gold upon the world gold price... The question .immediately arises, therefore, whether the present announcement may not be the forefunner, to American purchases of silver produced abroad. . It is predicted, that the immediate market response is likely to be strongly rising prices, but it is doubtful if they will hold up, unless the ruse is followed by on authorisation for purchase of gold". It;, is indicated that Wbput s’xty million- dollars hag' been expended,.on gold* sixteen-'millidn dollars being for domestic -purchases.- and fnrtv.five million dollars f°r foreign .purchases, ...f