You be igned for the paring its debts in of pmpora bay into the Treamy though point that I make Certainly. the Trome of Pederal Resort e in orda ་་་་ to pay the Government's it to buy material I think the only way the And that i what we are ecoking to do. Oc by But when we gre spending hundreds of billions cannot rais it all by taxation. To, we have to borrow some of it by the Zo that, then, in borrowing you borrow sapner of Federal Reserve notes through very time that the Government is borrowing ·་ ༔ ee the TreaOUNTA the Secretary of the Troguey refusing the boul And at the to upli Goyempient money that is there in the vaults of the Treasmy and till in bonds to raise money Sepiter M. The CMA I wear to clear up one question in my mind, and then I am fin bed for a while, I hope The foreign silver bought by the TeamA I bought #1 a lower price, of course, than domestic The current Trowury buying. 1 h Phon into the lowe i Tron mry silver buying price い Yos. Now, in feming out the total amount of money på d log by the Tros my it doo amount to about 30 cents an ༄·་་་ Senator MCCARRAN. Practically. The CHAIRMAN. I am speaking of the free money now. The CHAIRMAN. I understand that is what it amounts to-about50 cents. Senator MCCARRAN. In other words, you mean the average cost? The CHAIRMAN. Yes; the average. Senator MCCARRAN. May I say to you that that is approximately trie. I have never figured it out exactly. Someone probably has. and you probably have the correct figure. But let me say to you that the reason for purchasing more foreign silver than domestic silver was that foreign silver could be acquired at the abnormally low price of 35 cents per ounce. The CHAIRMAN. Yes. Senator MCCARRAN. And the difference between 35 cents and $1.29 inured to a greater profit to the Treasury of the United States. The CHAIRMAN. Yes. Senator MCCARRAN. Hence it was to the benefit of the Treasury of the United States to acquire the foreign silver rather than the domestic silver. Now, that leads to another subject here. I must apologize to the committee for taking up its time. It is a subject that is so inexhaustible that I would not go anywhere near the length, and I do want to come to an end of my discussion of this matter, but every now and then something comes up. I am going to get back, somehow or another, to your question as to how Senator Green and I can get together. Some way I will get back to that, just as sure as you live. Senator MALONEY. You have not been on that subject yet, Senator. Senator MCCARRAN. Oh, yes; I have been on it. I have been on it. Very much on it. Let us go back to the two classes of silver in the Treasury. The one stands behind the currency, and the other does not. The War Production Board said they wanted to use 47,000 tons of free silver for nonconsumptive use. Now, then, supposing that the 47,000 tons of free silver were to be used for war essentials for consumptive use. Now get that: The 47,000 tons of free silver in the Treasury-it is slightly less than 47,000 tons now-were to be used through the agency of the War Production Board for war essentials for consumptive use. And then the 39,780 tons of bullion silver that is in the Treasury standing behind the outstanding currency of America should be moved over on the books of the Treasury into its place and could be used through the agency of the War Production Board for nonconsumptive use. We would then have 39,780 tons of bullion silver in the Treasury utilized during the emergency for nonconsumptive use, under the direction of the War Production Board, always the property of the Treasury of the United States, to be returned, always standing behind the outstanding currency of America; and 47,000 tons would be used for war-essential consumptive purposes. I repeat: For waressential purposes, for consumptive use. And then what is the value of that money-of that silver as it passes out of the Treasury? The law says what it is. It is $1.29 per fine ounce. The CHAIRMAN. You are speaking of the free silver now? The Chenones Of all the silver? Bago. Worth £1.29 per fine ounce. Now, it shouÁČ hotica,e the Treasury at a loss to the Treasury and the people of the Squator My posia Suator, if I might interrupt you, how can you call it a loss? When the Treasury bays it for de cuits and see it for Bb egits, where is the loss? Senator MoCkrosis. All right. Let me miswir. I have a bi bil here in my pocket a couple of them. The Cuzhomas Taucky. Taughter) Senator MoCkces. A couple of them. If I sell that indicating # #l bill), that is worth $1, kuka? Senator Md'Aineis It represents 3714 grous of pure silvka, i the Treasury of the United States. If I give it to you for 54 kkhis, do I lose or do you lose? Hepator MaLowk. You lose, Senator. Sounlop McCann. Certainly I do. Souator MALONEY. But that has no relationship to what I asked you. iscuntor McCASA. It has, exactly. Sonitor Mamock Certainly; the same thing. The Chairman. We are talking about the silver now, are we not? Senator MALONEY Free silver. The CHAHMAN That is what we are talking about, the free silver. Sombor McCARIAN. "Proc silver." There is no such a thing as free silver. The law says that it shall be issued by the Treasury in silver certificates. Senator MapONEY. Including the foreign silver Scumfor McCamAN Certainly. Senior MALONES. Purchassed by the Treasury? Semmtor MCCARRAN. Certainly; there is no distinction in the law. Semmtor MALONE. Do you think it would be a mistake to rise the price to $2.297 Senator McCARAN. Not at all, if you keep it in proper ratio to gold, which it always should be. And if you will raise the ratio of silver to gold, gold at $36 an ounce, you will put silver to $3.18 an ounce. We have never asked for it. Semtor Bankura. Of course, the reason why the silver, so-called, is said to be worth $1.20 an ounce is that the amount of silver in a dollar does not cost the Government of the United States what it really represents in value; and that when you compare the amount of silver in the dollar with the dollar itself it makes the silver presumably worth $120 an ounce, but it is not put out at that. Semtor McCARICAN. Oh, yes, it is, Schator; you are mistaken in that That $1 29 comes by reason of the ratio of 16 to 1 when gold was $20.67 per ounce. The ratio was not adhered to when we decreused the gold content of the gold dollar. When gold was $20.67 per ounce, silver was $1.29, and it comes out of the ratio of silver's production in the world of 16 ounces of silver to 1 of gold. The nations of the world recognized that. However, the all-time production ratio is only 12 to 1. The CHATMAN. May I ask you a question right there, Senator? Senator McCARICAN. Certainly ་་་་་་ by kayo out and buy it now. 4k now quration of utization of & ver: this is They exu buy & iver. They can gel kaykk if they will bd over 7) cents. They can get foreign By** of 4. Vim food acton Bobag and other agencies will remove the Laicum sily will come in as it did come in to Hangy & Immun mud olie who have controlled this industry for years and why bank muude their fortunes out of it. This is a brokerage game, The able Senator from Connecticut speaks for མ་ ཉ་ ་་ ་ ་་་ ་་་་་ be sploodud industry. They have been subject to the will of the buki who furnished the silver to them. And what did those brokers do not very long ago? I won not speaking personally now; I am apraking impersonally, and I am speaking of the brokerage agencies tut ve bundled silver to the trade, from the industry out to the The CHAIRMAN. In my own State there are a number of silversmile who have wollen to me, who have no relationship with any broker, if any Senator McCARRAN. Certamly. Do you suppose anybody ever wrote to them and asked them to write to you? Is hat ever done, Senator? The CHAIRMAN. They are dying on their feet, as one would say. Senator McCarran. Undoubtedly. Senator. I have thousands of miners in ny State. The CHAIRMAN. But these people still will go on. Senator McCarran. have housands of riners in my States who ure out of employment, Degging me to get the War Production Board toule that they may go back into mining. We have it in every line, Senator The CHAIRMAN Mining of what? Senator MCCARRAN. Mining of anything. Senator MCCARRAN, Mining of silver res. Certainty, mining of silver: If we can produce more silver you would not have the question zuised, and yon could produce more silver if the miners had not been taken from the mines. Where does your stiver come from today in America? It comes as a byproduct of conner, lead, and zane. Ninery percent of the silver produced in America comes as a byproduct of CODDAT, Pad, and zine Senator MALONEY. Those miners are out of work? Senator McCarran. Yes, sir. Senator Maloney By Government order? Senator MeCabran. 3r Government orET". Senator M Loney. Ther will not let them work? Senator McCaway. Now, the miners I am speaking of, and in some instances Senator MALONEY. I am speaking about miners of copper. Lead, and zine. Senator Mol xv. No: but they have been taken our of ne mines. Songtor Boney. The and low” Senator Melcowys. They have been taken out of the mines by ted agencies, that is, along "wo lines. First of all, the Government bidding against itself in high wages in these various Government agencies. Building cantonments, shipyards, and the like.. When a miner could get $7.20 or 38 a day in a mine, and his neighbor would gy. " dan get $1.50 an hour to 20 down to the singari. me fellow sgid "Woll hell, why should I stay here? I am going to the slip Songtor Baducey. Woll, shat has happened on the farms and im the garages and everywhere else. I thought you intimated then the Gonaniment had deliberately, bør some proclamation. taken these men out of the copper, zine, and lead mines. Sonator Welvaxe. Oh, nos No, no. Senator V ALONEY. Why, Senator, site Government pat solfers to work mining a few days ago beranse enough miners were mot available. Senator McCARRAN. Yes, indeerd; and that required a meeting of the Siren Commwalttee in order that we might go down with the War Prochuction: Beared and indice them to furbometh 4000) maimers back "o the copper, lead, and zie mies. Senator BARKLEY. You said something about 90 percent of silver Bring a byprocket of copper, lead, and zine. |