Show SENATOR REPLY TO MR BROWNELL jn L in the last issue of the mining review we published the letter of F H brownell vice president of the american smelting smelling refining Z replying to senator key Pitt mans letter to ex governor boyle of nevada inviting the batters lat criticism of senator pittman s stand on the silver question in the congressional record of february ath senator pittman had mr letter and his reply published the reply of senator Pitt mans is as follows 1 my dear mr brownell I 1 have read more carefully your letter of january 26 in reply tola toa letter addressed to the former governor of the state of nevada appearing in the congressional record of january 22 1923 on page 2184 1 I am pleased to have your explanation of the meaning that you intended to give in your testimony before the committee on mines and mining of the united states senate wherein you said in substance that the smelter companies were not interested in the price of silver as they all sold at the market I 1 was aware of course that for many reasons the smelter companies panie s be interested in the price of silver you have stated very clearly these reasons this should urge the smelter companies to take the most active interest in all plans looking to the betterment of the silver industry 1 I am still rather at a loss to understand why the smelter companies have so quickly surrendered particularly in the matter of financing an export association there is a minimum price for silver at af that minimum price there is no better security in the world than silver biver bullion since the writing of your letter I 1 have discussed this very matter with men who are able to finance such association and they have expressed their entire willingness to undertake it you use a double argument against the formation of such an association you say if it can be financed then it is not legal and if it is legal then it cannot be financed it is this hopeless attitude on the part of the smelters shelters sm elters that appears so unreasonable under the statement of the interest of the smelters shelters sm elters in silver as set forth in your letter the smelter and copper people organized a copper export association cia tion I 1 assume that that was legal at least our government has not seen fit to attack it what was the object of such association was one of its purposes to sustain the price of copper Is there any distinction in law in sustaining the price of copper to prevent it from going to a lower level or in raising it from the lower level to the sustained price copper is sold abroad and in the united states just as silver is sold abroad and in the united states did the sustaining of the price of copper abroad inthe price of it in the united states if so was that a violation of our antitrust acts Is it any more legal to artificially prevent the price of copper from going down in accordance with the supply and the demand than it would be to put it up UD to such price and hold bold it there by the same means all of our antitrust acts were passed for the purpose of pre preventing ent ng the fixing of unfair and extortionate prices through combinations in restraint of trade A silver export association will have no such purpose nor will it have that effect the exchange value of silver and subsidiary coins and gold in tile the united states is on the basis of approximately an ounce for silver whenever the price of silver is below such price it is below belov par the purpose and intent of a silver export association is not to artificially increase its value but on the contrary to remove tile the artificial restrictions imposed upon its marketing which do now and for a long time have prevented it from rising to its natural value based on supply and demand congress had in mind at the time that the webb pomerene act was passed these combinations in foreign coxin countries trie which have discriminated against and restricted the rise in price of our products I 1 can hardly conceive of a aase case in which the price of our products were increased abroad that there would not be some shadowy reflection upon the price at home it was not this shadowy reflection that congress intended to prohibit because such a prohibition would be an annulment of all of the benefits of the act the greater part of our american silver is sold abroad suppose the association received boniv that proportion of the american pro deuced silver and left the proportion that is generally consumed in 1 the united states in the hands of the producers or holders to be sold sola in competition in the united states as they saw fit could the as then be charged with combining to increase tile the price of 01 silver in tile the united states would not there then be an active competition between the same market of the united states competitors that now exist in the the webb pomerene act was not people discovered when they a foolish thing as a s the copper organized the copper export association it has proven a great benefit to copper such association can be as legally an organized for silver and it will as beneficial cial to that metal prove equally while I 1 am convinced that the organization can be in a legal way so at least as to protect that part of our accomplished silver that is normally sold abroad it is my intention when the opportunity offers to introduce an amendment to the webb pomerene act that will clearly remove any ambiguities and dissipate the fears of you and your associates with regard to the legal power to organize a silver export association in your reply to me you include a long argument to show that silver is in a desperate situation by reason of the debasement of silver coins in europe at the same time while you quote in your letter united states experts handy harman you do not emphasize that portion of their report dealing with the subject of debasement of coin handy harman in their report on this subject say but europe is not our great market for silver again the silver experts to whom you refer handy harman in their report say the demand from india and china more than any other factor accounts for the price levels at which the silver market rules undoubtedly our great markets for silver are in india and china there is no debasement of silver in either of these countries and never will be the agencies of the british government have always made a large profit upon the sale of silver both in india and in china the advantage of great britain in oriental commerce is due to a great extent to their control of the supply of silver it is true that the fixing of a price for silver is an international matter but as I 1 have before stated so long as foreign agencies can artificially restrict the price of silver below a dollar an ounce it is useless to discuss with them the fixing of a price for silver at a dollar or above that price we have it in our power to f ight fight and destroy such restriction and such was the intention of the webb pomerene act As I 1 have said before the organization of such an association will be attempted and I 1 hope that you and your associates socia tes will take a less fearful attitude toward the matter I 1 thank you for your very frank discussion of the subject I 1 am aware of the great knowledge you possess with regard to the production and marX marketing eting of silver and its coridi tion throughout the world and it is particularly for this reason that we must have your earnest and active support |