Four Years of the Silver Program

Report Outline
Reconsideration of Silver Policies
Development of the Silver Program
Operation of the Silver Program
Effects of Program at Home and Abroad
Special Focus

Reconsideration of Silver Policies

Impending Expiration of 1933 Silver Agreement

A sharp decline in the price of silver on the London market brought assurance from Secretary of the Treasury Morgenthau early in December that “until further notice” the United States would continue to buy foreign silver at 45 cents an ounce. Whether the Treasury would continue, under the purely domestic part of the country's two-fold silver program, to pay 77.57 cents an ounce for domestically produced silver after January 1 would depend, the Secretary said, upon the terms of a proclamation later to be issued by the President.

The International Silver Agreement expires on December 31, 1937, and with it the President's proclamation of December 21, 1933, which constituted the affirmative action whereby the United States ratified the international agreement. Under the 1933 proclamation and its 1935 liberalizing amendments, American producers have been receiving over 77½ cents an ounce for their newly-mined silver. If the proclamation should not be renewed, or other provision made before the end of the year, the 77½-cent price would automatically terminate and American producers would have to sell their metal on the open market at the prevailing world price. The world price has been kept steady at about 45 cents an ounce by the Treasury's policy of absorbing nearly the whole of the world's current mine production, as well as Chinese demonetized silver, supplemented by additional purchases in the open market.

Possible Cut in Bounty to Domestic Producers

Concern for the future of silver began to be displayed by members from the Rocky Mountain states soon after the convening of the present special session of Congress. Senator Pittman (D., Nev.) said in the Senate, November 22, one week after the session met: