| Show A. A S. S S. R. R. R Operators I Told of Pittman Act Termination of ot 1 U silver aUver under the thO terms term of ot the Pittman act as ci it will affect af at- f. f the sliver silver producers served by the American Smelting and Refining company com coin pany and the manner in which settlement settle settle- ment meat prices under the closing weeks ol ot I the act w were e ra given I out ot this I. I morning by Edgar I L. L New e house J Jr department man manager of ot the American Smelting The bulletin follows I IA A conference was wal held In Washington Washing Washing- ton at the office of ot the director of ot the tha- mint on March 50 20 30 1922 in relation to the approaching termination of ot the Pittman act At the conference it developed developed- 1 The approximately 6 S per cent of ot the silver purchased under the act not represented at tho meeting is 11 that silver sil IU- IIi IIi- ver sold direct to the government mints minte In the form torm of gold bar bars bare Including dore dora bars ban mainly produced by cyanide mills milla 2 The treasury department pursuant ant to the tho opinion of ot the government le legal al advisers and in conformity with authority granted by the Pittman act has hal deducted from the amount remainIng remaining remain remain- ing Ine to be purchased that amount of ot sti stiver IU- IU ver utilized utilised for tor subsidiary coinage 2 5 After this deduction and after deducting tenders of ot silver now in process of ot smelting and refining for tor which the tho miner has baa already received the Pittman act price there are ap approximately approximately approximately ap- ap proximately but twenty million ounces o silver remaining to be purchased under un Un- del der the act as of ot date of ot March 30 4 4 The production of ot silver sliver qualified for tor sale lale under the Pittman act is in increasing increasing In- In creasing with the probability that from now on it will approximate to ounces per month which Indicates indicates indi Indi- cates a termination of ot Pittman purchases purchases pur pur- chases chAlles not long before or after the first of ot July 1923 6 5 The date of ot termination cannot be ba accurately forecast and will not be ba known for several months after the ac actual aci ac date because because- a The government will wm require time timeto to get Iet in all aU the figures In relation to the amount of ot silver used for tor subsidiary colna coinage o b The vend vendors on will require several veral months to get their accurate figures because of ot delays growing out of ot disagreements dis agreements agreement over assays saya sampling sampling- moisture moisture mois mole ture etc c After all figures fIgure are in In the de department department department de- de will wish to check the vendors vendors' books and to make any necessary cor cor- 6 The government insists upon absolute absolute absolute ab ab- ab- ab solute fairness to all alt producers of ot silver diver having always in mind the principle that the bene benefits tits of ot the Pittman act were intended by congress to inure to all miners alike without however ImposIng Imposing ing lug actual loss 1018 upon the reduction works The point of ot the process of ot producing producing In ing silver at which th the Pittman ac act will wilt be deemed to apply is the time of or actual receipt of ot the ore or concentrates at the reduction works yorks which whIch means Inmost in inmost inmost I most cases cues the smelter yard and this Irrespective of ot date of ot assays date pf pt bills of ot lading of ot sampling or of any other matters which by contract apply to the price of ot silver not salable under the Pittman act In other words the director of the mint In checking the books of the vendors ven yen dors will not consider n I any sliver silver ll as available for purchase ur under nd the Pittman act which had not been actually re received received re- re calved at t smelter on or before the date of ot termination of ot the act This of ot course does not app apply to the sliver silver produced produced produced pro pro- from cyanide or other processes processes- about 5 6 per cent of ot total silver production tion which tion-which which never goes oes to i t smelter Th lh department Intends that all mines be treated absolutely alike a ato as asto to the actual day of ot termination of ot the tha Pittman act Hence any allocation of ot ofa ofa ota a specific amount of sliver silver to different smelting companies to different mines or to different states would be T ble as various causes such as character of ot ore ore breakdowns labor shortage etc vary rates of ot production considerably and might result in some mines receivIng receiving reedy reedy- ing lag the Pittman act price after other ml rally's eh have ceased d to receive e it eft i The smelting c companies agreed reed In Informally informally in- in formally that when the time arrives at which It cannot accurately be told whether the Pittman act price can be obtained or not the smelting companies will ili 1 simultaneously cease ceale paying the Pittman act price and will wilt begin making makInI provisional settlements on the terms applicable applicable ap ap- ap- ap under their the re respective contracts to silver aUver not salable lable under the Pittman act with the understanding that the department will continue to receive tenders ten ten- ders dera conditioned upon Its ability to complete complete com coin piete the purchase under the act and that when alt all the figures are In and the actual date of ot termination can be determined au all aU shipments qualified for tor sale under the tha act will be bo and the Pittman act ct price paid there there- for The date at which provisional set set- set set-I tle-ments tle will begin will probably fall tall fallIn fallin In May and you wilt will be advised as soon lIoon as possible of ot the exact day The date of at of ot silver salable at st the Pittman act price will 1 be as soon as al the exact date of ot termination of ot the act Is known As to this date dale of ot the time for tor actual delivery of ot the tho sliver silver to the mint will have no no bearing You Tou should not therefore be confused by the fixing of ot October 1 1924 mentioned Inthe in lit the the letter as the ultimate date of ac actual actual actual ac- ac delivery since this date data was fixed with a view of ot giving ample time for all the silver to be actually produced Much duch silver bearing g ore as S you know g goes t through zinc zinc- gp p plants ta wt which b remove eo ve the zinc and then the silver Inver combined with lead goes to a lead plant and often otten it if the ore contains copper also aiso to a copper plant before the silver sUver In la the original ore is finally all obtained As A. the government government government gov gov- will save ave interest on its It money it Is willing to give ample time for a ao- ao m r Tto ea fI d delivery of the sliver silver offered e to and accepted by it under the act Obviously Obviously Ob Ob- Ob- Ob the tha smelting and refining companies companies com corn will make deliver delivery as soon as possible to save lave Interest rest carry carry- Slut But whatever the the- the date date of ot actual delivery deliver of ot silver to the mint It n not aa as above stated affect t the date dat t of t it of ot your silver sliver which will occur long be before be- be fore tore probably a year or so BO As stated in the tha above letter at the time when ounces remain to tobe tobe tobe be p purchased all sit plants wilt will be expected to wire each day the estimated amount of ot silver received at the smelter yard and the amount of ot silver aUver so received will wili be tendered each day to the director of ot the mint for sale lIale under the Pittman act The director of ot the mint may ac accept an- an capt these tenders at the time of ot receipt but probably will not in which event II the tenders will 1 be placed on file fUe so that when It is 18 definitely known that the Pittman act is III terminated auditors for the government may go over the books of ot the vendor smelters fix the tha amount after racking making necessary adjustments adjust adjust- ments for tor accurate rather than estimated esti I I mated silver contents of ot receipts at t the e smelter yard each day and then accept tend tenders rs day by day based baaed on the actual receipts s until the Pittman act is tex tex- ext ex- ex s. s t T I halted Probably on th the lust last day there will be a fractional amount only of ot that days day's receipts which will be ba equitably apportioned pro rata on the total days day's receipts The de details taUs of ot the departments department's method of ot auditing will be worked out and you ou will be promptly advised as ns soon loon a as possible The department will later advIse UI us as to the change If It any In the miners' miners affidavit which It desires to have made nade to cover the shipments upon which provisional pro pro- visional settlement Is made at the open market price and which may later lter be at the Pittman act price We think this plan does e ct Justice to both mine and sIDe smelter Iter and shall Ihan be glad to answer so far as we can any Inquiries you may have hava to make |
