Statements of: CONTENTS Dies, Hon. Martin, a Representative in Congress from the State of Morgenthau, Hon. Henry, Jr., Secretary of the Treasury- Oliphant, Herman, General Counsel to the Secretary of the Treasury- White, Hon. Compton I., a Representative in Congress from the SILVER PURCHASE ACT OF 1934 FRIDAY, MAY 25, 1934 HOUSE OF REPRESENTATIVES, Washington, D.C. The committee met at 10 a.m., Hon. Robert L. Doughton (chairman) presiding. The CHAIRMAN. The committee will please be in order. The committee has before it for consideration this morning H.R. 9745, introduced by Mr. Dies, to authorize the Secretary of the Treasury to purchase silver, issue silver certificates, and for other purposes. (By order of the chairman, the message from the President referring to silver purchases is here printed in full, as follows:) [S. Doc. 181, 73d Cong., 2d sess.] MESSAGE FROM THE PRESIDENT OF THE UNITED STATES RECOMMENDING ENACTMENT OF LEGISLATION DECLARING IT TO BE THE POLICY OF THE UNITED STATES TO INCREASE THE AMOUNT OF SILVER IN OUR MONETARY STOCKS WITH THE ULTIMATE OBJECTIVE OF HAVING AND MAINTAINING ONE-FOURTH OF THEIR MONETARY VALUE IN SILVER AND THREE-FOURTHS IN GOLD (MAY 10 (calendar day, MAY 22), 1934.-Ordered to lie on the table and to be printed) To the Congress of the United States: On January 11, 1934, I recommended to the Congress legislation which was promptly enacted under the title, "The Gold Reserve Act of 1934." This act vested in the United States Government the custody and control of our stocks of gold as a reserve for our paper currency and as a medium of settling international balances. It set up a stabilization fund for the control of foreign exchange in the interests of our people, and certain amendments were added to facilitate the acquisition of silver. As stated in my message to the Congress, this legislation was recommended as a step in improving our financial and monetary system. Its enactment has laid a foundation on which we are organizing a currency system that will be both sound and adequate. It is a long step forward, but only a step. As a part of the larger objective, some things have been clear. One is that we should move forward as rapidly as conditions permit in broadening the metallic base of our monetary system and in stabilizing the purchasing and debtpaying power of our money on a more equitable level. Another is that we should not neglect the value of an increased use of silver in improving our monetary system. Since 1929 that has been obvious. Some measures for making a greater use of silver in the public interest are appropriate for independent action by us. On others, international cooperation should be sought. Of the former class is that of increasing the proportion of silver in the abundant metallic reserves back of our paper currency. This policy was initiated by the proclamation of December 21, 1933, bringing our current domestic production of silver into the Treasury, as well as placing this Nation among the first to carry out the agreement on silver which we sought and secured at the London Confer 1 |