Those Men Are Here Again

The Silver Bloc last week chalked up another victory over the U.S. taxpayer. After two months of wrangling, it finally got a bill through Congress, boosting the price of silver from 71.1-c- to 90.5-c- an ounce. Who will pay the 19.4-c- increase? The same people who have been paying the freight ever since silver was jacked up from 44-c---the taxpayer and U.S. manufacturer.

Under the Silver Purchase Act of 1934, the Treasury must buy silver until its holdings equal 25% of federal monetary reserves, or until the price reaches $1.29 an ounce. But the Treasury has been able to sell silver only if the Silver Bloc is willing. For the last six months the Bloc has not been willing because Congress was not willing to boost the price of silver. Result: silver has been so scarce that the PhotoEngravers Board of Trade of New York went so far as to melt silver dollars to get silver for industrial uses (photographic plates, solder, etc.).

Congress was finally forced to give in to the silver-loving Congressmen, led by Nevada's Pat McCarran. They had been able to hold up the Treasury-Post Office appropriations bill, threatening the pay of 552,000 federal employes. Now the Treasury can again sell silver from its vast hoard.

Other stocks, hoarded by speculators for the anticipated price boost, will soon be pouring into the market. But the speculators are in for a disappointment: the 90.5-c- price applies only to new silver mined after July 1, 1946.

As usual, the Silver Bloc said the new price would "encourage" the mining of silver. But U.S. industry did not need more silver if it could buy what the Treasury now holds.

The new price would go far to complete the demoralization of currencies in many countries (Mexico, India, China) which the Silver Bloc's grab had started. As the silver price has risen, silver has gone out of circulation in nations using it for currency and flowed to the U.S.

Despite the present artificial demand for silver, chances are the taxpayer will pay more & more to the greedy Silver Bloc as time goes on. After World War I the world price of silver dropped from $1.37 1/2 to 24 1/2-c- an ounce (in 1932). If that happens again, taxpayers and manufacturers will have to boost their ante to the Bloc from 19.4-c- to 66-c- an ounce.

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