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Show iMETALS SITUATION CLEARED ;! BY REPORT OF SALT LAKER i . A- G. Mackenzie .Tells of Action at Washington in Fixing Price of Silver and Other Metals and on Excess Profits Taxation. A SUMMARY of hl activities at Washington during the past two mont hs on behalf of the metal mining industry, was presented pre-sented in the form of a report by Secretary Secre-tary A. G. Mackenzie of the Utah chapter chap-ter of the American Mining congress at a special meeting of the board of governors of tho local chapter. The report re-port did much to clear up the situation with reference to tho price-fixing of silver and othe.r metal;:, as well as to cast some light on excess profits tax situation. The report follows in part: The situation with reganl to silver is rather involved. The government is in need of a considerable quantity of silver bullion probably GO. 000. 000 ouncea or more at the present time to pottle obligations obli-gations to India. Japan and other nations. A sufficient quantity is not available in the open market and the government has decided to draw for its immediate needs on the only considerable available supply sup-ply the silver coin now held in the tT. S. treasury and represented by the silver certificates outstanding. The silver thus held in reserve amounts to about 490,- , 000,000 ounces. To Meet Obligations. The government proposes to withdraw a sufficient amount of this to meet its present obligations. The coins thus withdrawn with-drawn are to be melted down to bullion again and sent abroad. Of course, silver 'certificates of face value equal to the face value of the coins thus taken from the treasury will have to be called in from the banks. This subtraction from the country's currency is to be met by an equivalent issue of federal reserve bank currency. The government is to contract, at the time of each withdrawal of silver coin, to purchase an equal number num-ber of ounces in the open market at Jl an ounce. This is Intended only as a temporary arrangement ar-rangement to meet an emergency. As rapidiy as possible the silver coin reserve re-serve will be restored and new certificates certifi-cates issued. The protection to the silver producer is in the condition that the government contract con-tract to purchase silver in the market at $1 an otince, placing its orders in accord -n nee with withdrawals from the reserve. The govt rumen t, as the principal purchaser pur-chaser of silver and with the general powers it possesses, ifl able to maintain ' any price it fixes and we were asnuivd I that the price would be maintained at j the figure named. I Early Legislation. j The latest advice I had obtained Feb- ruary lh, the dny 1 left Washington, from Director Kaker was that early action I might be expected on the proposed h gls-i gls-i lation. Mr. Kaker told me that the mat-i mat-i u-r was brdt:g held up now only to allow ' the federal reserve board to make ar-! ar-! rar.geinent to replace the silver certificates certifi-cates wit hdra wn. This was In line with information I had recivej several times hr.M-innell' frr.rr Mr (.' ,.,t- I H-i!,t I.im j that our western producers were holding I their plans for the season in ab- an e I pending at tion by the government and i that valuable time was passing. Mo a-j a-j sured me that ail possible was being done, that he was giving his personal attention to the matter and th.u early action could I be e.pe- ted. j I understand the bill revering ti e mat-I mat-I t-r is in the hands of Senator Pitt man j of Nevada, and th;tt it calls for an initial ; purchase of .vV,'""",,li,'v0 ounces by the government gov-ernment at $1 an rvme. I h.tve also : be-ti informed that th- guv.-rntm-nt plan t to purchase at la.-t 1 ,( "V1" (' at t na t I 1 , gui e. This inf -i mat Inn n pp irs re h-i h-i onable, in view of the f.n t lh:il out gov-i gov-i ernnif-i.t hns plied an embargo on gold exports and will reqinn iari: o. u.i nt ; I ie? j of s;l.-r to nirt foi eigri obligations, c-ti- ptri ially In the orient. ! Mexican Agreement. . ask d Mr. TM..-r p rticularly about j I the rife- t of tbe l.ew a trc-nx-n t with i I M-iico. whl h rrnmvH the embargo that , r- nuir''d L' pT cent of the siUrr imported , from Mexico to be returned to.th.it conn-! conn-! try. On jr f ief, the Hgre.-in- nt Indicated 'that Mxir .xn in: porta t ion rnitrht be tn-iT'vu. tn-iT'vu. 'l '. p.-r c nt. Mr. hak-r wh em-phitic em-phitic In hsh. rting that tl' Mexican agreement would not aff-Tt aflvrHMy fh" plm xpiair:er above. It oni' piM.ibIv effect wmiifl b he aid, to d'cr"a the amount of r. 1 1 h ! r.iw a N of silver from th r rve ftii'l that tin- gf'vernnient would 1 pr pared to iu- ail tb.e silver thnt th" I nited t ta tr-s coultl produce for a long . time. . A diy or f-o aftr the plher meeting. v- c ;i i e;i r. d bef i . e the war 1 !d uy 1 1 -it-a I tfard In cnnectlin vita fitng the pn e of t-ad. i f ir pc4tttin at that rm-etlng w a - that t. he r ta f .1: h merit of a run x- i nn um price on le.i, wou'd aeiomn!!0i no , K' 1 for t r rrwl ijers with pre- nt a nd ; imriic'l la tj prof-;.- tive market cond 1 1 i .;im. ! Ar.fAt-rlng a rj l ion, we said that If u maximum w ere fixed It p: ,ild not be ' b -ts tfian S (er.ts a rM,it d. '- presented ta to Minport that price. Th hia rd ar.n tincr i a few davi later that It had been decided not to fl a price nt pref-iit. Price of Copper. The same b-ard held meetings .T.munrv IT to ef.n-l ier ' o; r nnrl znu- rb e. The , The ropp'-r prb e of I 1 Centj. previously ef (ibllned. u; :i confirmed until June I. No announcement w.iii rei:.ird to zip. was made at t h inert 1 rig, but It. v. h Fur.eficntly a n no-iri' ed. Kebruarv I , th;it a price r,f 1 Z 'en's for crude A. f. n. b. St. lmh; 1". rrnt-4 for nhrd nnd M renin for plate, h.ad been set. suhert (n rad ju'tt mrti t dune 1. produi tm not to, deerraxe V:;es meanwhile. We hid ak'd fnr a pri' e of 1 .', ' ? Cent f'r gr.'ide ! A and lt '.ri U for prime wept ern. tn 'ca'-e iTinxirnurn prb-s weir s.et. Tho taxation matter claimed mnt of our attention. 'n had man' meeting 0 t.ii opera t oj - from pi art h a llv nil 1 : ,e . minernl rtate:-. man, conferences with ' omntl Mon'T it-'pT and bin advisory j comuutt'e and Interviews with leader: f bftth parties In cotig" Including, he-hidr he-hidr our ''' I'll t--er.ator.H and rrpre- Kenia t r. Cha 1 1 rim n K it chin of t lie leu.' ;md means commit I e(, nf im house and ( 'ha Ir ma n Simmons i f t ho fmarn'o coni-inlt coni-inlt ' e of the M h tie. To Hum ni ti e results of all our aMv-HlrH, aMv-HlrH, it ir. iieces.tarv. us fur as 1117 laves! are conferred, in pioeo-tl under the pre.- ; i Ut law Htul rrfcula 1 ion. We it re H.m-;uici . bv (omml:done- Coper thnt our imlus- ; try ba 11 liH ve it bt'ollll ey j ud t rea I me ut ; n conspired with of ier Ind unt ri'" and In; hat Invited our co-opr ra lion to that end. i Many Amendments. j Th'TA Is hope to ha it our amendment ! tr ken up and c'ucudcre, In the la t ter ) part of April or earlv In Mav. Mr. KHehin ' ,.ld m. Me nb.o t..hl n.e. to Illustrate ; the diiri"'lllv "f the pie.ent situation.) that lie haj; before him eighteen or twen-. t v a ic-nd men t m dr ijed .- the 1 1 ea-oir ' j iri 1 1 1 n i e n t fr-r a ' f u i i n i r. 1 1 n t hr purj e. , ,e v il I not prr -n t t hem on ncctninl of i he ntn:i t if m In the fie i ia I e . As iiioh( of Mm rat doubt V now, the Iioumc, under 1 1 :: niu, :in eontine fi'dion to a ::perfic ni.a ui". Tim.", in the :i"e of mii amen.f-j amen.f-j , i t to ( ; r i ee- I prol It" t H In W. It , , ,nl,t I ,r- int ro.l uced it i id i r a in!'1 vh b h would M i ni I tho in f i"H of the iniii o (bat fi.f'i'Urr and I bi.-i f abut-. No nihil si I .). 1 Wn , eb-t- ill the fccnale, n Iktc tin-1 tin-1 r,l i .,.! 1 1. t b 'O of on,. a me i..t i uen I w i tii Id ,,,,,,, t h " floor a fur I ', ie I n t rod uc I ion of (1 ', ( M'ei- n Til C 1 1 d O i II 1 e ' (lie e l -;, nrs i I to -e I. .l fer. , m H matter Of fact, ad a ( r I all'i.b d to bv Mr. KM- bin III our ( on ci ii t ion. M n:.tnr SoiO'd biin pie-I pie-I :. r-d as an a metol uic nt to the pre 'a-lit law a ii ( a I i ' ii'-w jc '' 'Mii, (ifber .".nnloifi ate Known to have ;,,,! i.lniMI In ofTi f Ilia) the eflnef f.f m; .-ni n - tie pi ' ': Itl la .V ill tie Menu te -,...,, ,.l ',,,' pi eel,,!!-, te a 'II :ct.. don ;, .1 -w.uld la'ii -"Un or in"iilli and I keep ihe entire revenue situation up in! tne air until finally disposed of. This is ti:c belief and fear of the majoritv leaders lead-ers in congress who. a? stated above, are with holding administration amendments preatly desired until other important legislation is disposed of. Mines Director Bill. You are probably familiar with 'the so-called so-called 'mines dictator bill." prepared bv tne war minerals committee of the council coun-cil of national defense. Our attitude with regard to it was opposition in so far as it related to the ordinary minerals. We contended that there was no occasion to subjert them to extraordinary treatment thmk you should know of the interest in-terest and activity of our Utah senators and representatives in our behalf. Senator Sena-tor King "paved the wav" for us at asnlngton. lie arranged for our initial meetings with the representatives o: the treasury department, accompanied us several sev-eral times, attended some of our meetings, meet-ings, "lollowed up" our work personally and kept in constant touch with the situation sit-uation at all times. His services were of the highest value to us and will be, 1 am sure, equally valuable In future Men from other states expressed il wish that their senators were equally efficient. Smoot Will Assist. Senator Smoot was equally interested in our cause. His was usually the first name mentioned when reference was maue to the senate situation, as he has specialized on revenue matters. Despite the fact that he dots not like the present pres-ent law at all, and lias a bill of his own on the same subject, when I took our amendment to him and explained the slt-! slt-! ualion he promptly assured me that he would assist our programme to his utmost ut-most and wound up bv volunteering to introduce our amendment if we wished him to do so. Although our dlffiruultv lav In the senate sen-ate rather than the house. I kept In close touch with Representatives Mavs and edintr, and lound them willing and anxious to help us all possible. Thev rave me manv valuable sucsvstions about members to see and 1 found their suggestions sug-gestions very helpful. Air. Welling is a member of the mines committee of Die house, but our measure Wu':llu so IO lhe 'iys ;uui means, on which there is no representative w.st of Kansas. We were well treated bv the government govern-ment officials and I feel sure thev will piva us all relief possible under the circumstances. cir-cumstances. The advisory committee members told us they had qlven us more time than had been accorded to anv other industry. |