Monetary Conference, the Finnish Government, while continuing to follow its customary general policy tending towards free and unhampered international trade, hoped that it might thus really be possible to create an atmosphere in which the Conference would be able to reach an agreement for the purpose of easing and developing international trade relations. "To its great regret the Finnish Government has noted that these hopes have not been fulfilled and that, moreover, not only have numerous countries already denounced this Truce in order to resume their complete liberty, but that some of these countries have even taken further measures, the result of which is seriously to hamper Finland's foreign trade. As it could not in these circumstances forego the means of defending the commercial interests of the country and in particular the possibility which other Governments already possess of making changes in their Customs tariffs by unilateral decision. my Government is obliged to withdraw from its accession to the above-mentioned Customs Truce. "Requesting you to be good enough to note the above and to communicate it to those whom it may concern [etc.]" Iceland (C.L.207.1933.II.) [The Danish Government on behalf of Iceland, October 27, 1933:] "Referring to the resolution adopted on the 12th May by the Organising Committee of the Monetary and Economic Conference. I have the honour to inform you, in accordance with instructions received from my Government, that the latter on the 19th inst. at the request of the Icelandic Government, has sent the President of the said Conference a communication running as follows: "At the request of the Icelandic Government I have the honour to communicate the following: "Considering that the time of closure of the Monetary and Economic Conference is uncertain and considering further that several other countries have made accession to the Customs truce concluded for the period of duration of the said conference subject to various reservations of considerable extent and importance the Icelandic Government who for their part are willing until further notice to continue the accession of the said truce, hereby declare that they make such accession subject to the reservation that Iceland will be free to take steps which they might deem necessary for the protection of vital national interests in the egonomic field." India (C.L.220.1933.II.B.) "The Government of India regret that they find themselves obliged to denounce the Truce with effect from one month after the date of this letter." [November 10, 1933, effective December 10. 1933.] New Zealand (C.L.220.1933.II.B.) *** New Zealand Government desires to give notice that from 10th December next they will cease to be a party to the tariff truce.' Lithuania (C.L.224.1933.II.B.) "KAUNAS, November 14th, 1935. In my letter dated June 8th last I had the honour to inform you that the Lithuanian Government had decided to accede to the Agreement of May 12th, 1933, concerning a Customs Truce. "When acceding to this Agreement the Lithuanian Government had hoped that the work of the Economic and Monetary Conference would lead to the abolition of obstacles to international trade. The Conference, however, has yielded no appreciable result and the restrictions to international trade have continued to increase daily. Moreover, a number of Governments have already denounced this Agreement. "In view of the foregoing, the Lithuanian Government is obliged, much to its regret, to declare that it will at the end of one month as provided in the Agreement cease to be a party to the Agreement concerning a Customs Truce." Nicaragua (C.L.224.1933.II.B.) "MANAGUA, October 31st, 1933. "The Government of Nicaragua acceded in due course to the Customs Truce proposed on May 12th of this year by the Committee of the Council in connection with the Monetary and Economic Conference which was to meet in London in July. In so doing it acted in accordance with the spirit of the proposal, feeling that this measure might be a means of maintaining the stability of monetary relations and attenuating the restrictions to international trade until such time as the Conference should have reached definite agreements. "The London Monetary and Economic Conference having practically come to an end without having in spite of its efforts achieved the objects aimed at, I have the honour to inform you that the Nicaraguan Government is desirous of regaining its freedom of action in Customs questions and is consequently obliged to denounce the Truce by which it will consider itself to be no longer bound on the expiry of one month from the date of the present notice." Union of South Africa (C.L.232.1933.II.B.) "GENEVA, November 24th, 1933. "I have the honour to inform you, by direction, that the Government of the Union of South Africa has decided to withdraw from the Tariff Truce arrived at during the Monetary and Economic Conference, and to give you herewith the requisite one month's notice of such withdrawal." The American Chargé d'Affaires ad interim at London informed the Secretary of State by a despatch dated December 20, 1933, that 2 * See Bulletins No. 47, August 1933, pp. 12 and 17, and No. 49, October 1933, P. 13. the Australian High Commissioner in London had informed him that the Parliament of the Commonwealth of Australia had ratified the silver agreement signed at London July 22, 1933, and that the first quarterly deposit of silver will be made about March 31, 1934. This information was furnished in accordance with the provisions of section 8 of the agreement. United States The President by proclamation on December 21, 1933, took the affirmative action necessary to carry out on the part of the United States the purposes of the silver agreement signed at London July 22, 1933. The proclamation and the explanatory statement made by the President are as follows: Proclamation WHEREAS, by paragraph (2) of section 43, Title III, of the Act of Congress, approved May 12, 1933 (Public No. 10), the President is authorized "By proclamation to fix the weight of the gold dollar in grains nine-tenths fine and also to fix the weight of the silver dollar in grains nine-tenths fine at a definite fixed ratio in relation to the gold dollar at such amounts as he finds necessary from his investigation to stabilize domestic prices or to protect the foreign commerce against the adverse effect of depreciated foreign currencies, and to provide for the unlimited coinage of such gold and silver at the ratio so fixed, WHEREAS, from investigations made by me, I find it necessary, in aid of the stabilization of domestic prices and in accordance with the policy and program authorized by Congress, which are now being administered, and to protect our foreign commerce against the adverse effect of depreciated foreign currencies, that the price of silver be enhanced and stabilized; and * * "; and WHEREAS, a resolution presented by, the Delegation of the United States of America was unanimously adopted at the World Economic and Monetary Conference in London on July 20, 1933, by the representatives of sixty-six Governments, which in substance provided that said Governments will abandon the policy and practice of melting up or debasing silver coins: that low valued silver currency be replaced with silver coins and that no legislation should be enacted that will depreciate the value of silver; and WHEREAS, a separate and supplemental agreement was entered into. at the instance of the representatives of the United States, between China, India, and Spain, the holders and users of large quantities of silver, on the one hand, and Australia. Canada, Mexico, Peru, and the United States on the other hand, as the chief producers of silver, wherein China agreed not to dispose of any silver derived from the melting up or debasement of silver coins, and India agreed not to dispose of over 35,000,000 ounces of silver per annum during a period of four years commencing January 1, 1934, and Spain agreed not to dispose of over 5,000,000 ounces of silver annually during said period, and both of said Governments agreed that at the end of said period of four years they would then subject themselves to the general resolution adopted at the London Conference, and in consideration of such limitation it was agreed that the Governments of the five producing countries would each absorb from the mines in their respective countries a certain amount of silver, the total amount to be absorbed by said producing countries being 35,000,000 ounces per annum during the four years commencing the 1st day of January, 1934; that such silver so absorbed would be retained in each of said respective countries for said period of four years, to be used for coinage purposes or as reserves for currency, or to otherwise be retained and kept off the world market during such period of time, it being understood that of the 35,000,000 ounces the United States was to absorb annually at least 24,421,410 ounces of the silver produced in the United States during such period of time. Now, THEREFORE, finding it proper to cooperate with other Governments and necessary to assist in increasing and stabilizing domestic prices, to augment the purchasing power of peoples in silver-using countries, to protect our foreign commerce against the adverse effect of depreciated foreign currencies, and to carry out the understanding between the sixty-six Governments that adopted the resolution hereinbefore referred to; by virtue of the power in me vested by the Act of Congress above cited, the other legislation designated for national recovery, and by virtue of all other authority in me vested; I, FRANKLIN D. ROOSEVELT, President of the United States of America, do proclaim and direct that each United States coinage mint shall receive for coinage into standard silver dollars any silver which such mint, subject to regulations prescribed hereunder by the Secretary of the Treasury, is satisfied has been mined, subsequently to the date of this proclamation, from natural deposits in the United States or any place subject to the jurisdiction thereof. The Director of the Mint, with the voluntary consent of the owner, shall deduct and retain of such silver so received fifty per cent as seigniorage and for services performed by the Government of the United States relative to the coinage and delivery of silver dollars. The balance of such silver so received, that is, fifty per cent thereof, shall be coined into standard silver dollars and the same, or an equal number of other standard silver dollars, shall be delivered to the owner or depositor of such silver. The fifty per cent of such silver so deducted shall be retained as bullion by the Treasury and shall not be disposed of prior to the thirty-first day of December, 1937, except for coining into United States coins. The Secretary of the Treasury is authorized to prescribe regulations to carry out the purposes of this proclamation. Such regulations shall contain provisions substantially similar to the provisions contained in the regulations made pursuant to the Act of Congress, approved April 23, 1918, (40 Statutes at Large, Page 535), known as the Pittman Act, with such changes as he shall determine prescribing how silver mined, subsequently to the date of this proclamation from natural deposits in the United States or any place subject to the jurisdiction thereof, shall be identified. This proclamation shall remain in force and effect until the thirtyfirst day of December, 1937, unless repealed or modified by Act of Congress or by subsequent proclamation. The present ratio in weight and fineness of the silver dollar to the gold dollar shall, for the purposes of this proclamation, be maintained until changed by further order or proclamation. Notice is hereby given that I reserve the right by virtue of the authority vested in me to revoke or modify this proclamation as the interest of the United States may seem to require. IN WITNESS WHEREOF I have hereunto set my hand and caused the seal of the United States to be affixed. DONE at the City of Washington this 21st day of December, in the year of our Lord nineteen hundred and thirty-three, [SEAL] and of the Independence of the United States of America the one hundred and fifty-eighth. By the President: Acting Secretary of State. FRANKLIN D ROOSEVELT Statement by the President Under the clear authority granted to me by the last session of the Congress, I have today, by proclamation, proceeded to ratify the London agreement with regard to silver, which has already been put into effect by the Government of India, and which I understand other nations concerned are about to act on. This proclamation, in accordance with the Act of Congress, opens our mints to the coinage of standard silver dollars from silver hereafter produced in the United States or its possessions, subject to the depositors of such silver surrendering to the government one-half of it as seigniorage and to cover all usual charges and expenses. The dollars coined from half of such newly mined silver will be returned to the depositor. The half surrendered to the government will be retained in the Treasury. It will be remembered that at the London Conference 66 governments unanimously adopted the silver resolution proposed by our government, providing in substance that these governments would refrain from the policy and practice of melting up and debasing silver coins; that they would replace low-valued paper money with silver coins; and that they would not enact legislation that would depreciate the value of silver in the world market. This resolution, however, was contingent upon an agreement between the governments of those countries producing large quantities of silver and the governments of those countries holding or using large quantities, looking to the elimination of an unnatural oversupply of silver on the markets of the world. This agreement, of course, was for the purpose of allowing demand and supply to govern the price of silver by the limitation and neutralization of this oversupply derived from the melting up of silver coins. India had the power to dispose of, on the markets of the world, at any time, and at any price, hundreds of millions of ounces of silver. In fact, India had the power and capacity to dump silver derived from the melting up of Indian silver coins in an amount equal to the world's production from the mines for the period of two years. |