present by the Treasury which appears to be more than enough to satisfy the monetary, war, and limited civilian demand for some years to come. Forced out of the silver-plated market, and rightfully so, last March 31 due to the dire need in the war effort of strategic nonferrous metals, copper, zinc, and nickel, many of these small manufacturers have had nothing but silver for production to keep their organizations intact. Unless a limited amount of silver is forthcoming they will of necessity have to close up shop. A minor percentage of usual consumption is all that is needed by these shops to keep going until converted. To deprive them of a livelihood at this time and under the present conditions when there is apparently plenty of the white metal to satisfy their limited needs would seem unnecessary and uneconomic. I doubt if there is a single manufacturer or distributor of silver today but that would give his all to the war effort if there were a place for him with his present facilities to fit into the war picture. There will surely be a place for him at some later date. Until that time comes I only ask that his case be carefully appraised and that he be allowed to keep his organization intact. A limited amount of silver can and should play a very important part in his economy. I hope that you will look with favor upon this bill. Senator MALONEY. Mr. Wilcox, in addition to being president of the Silver Guild, you are vice president of the International Silver Co.? Mr. WILCOX. Yes, sir. Senator MALONEY. How many employees do you have in the International Silver Co.? Mr. WILCOX. Under peak conditions, a little over 5,000. Senator MALONEY. Mr. Wilcox, I am asking this question to try to find the answer given to a previous question: "To what extent have you converted to war work in your plant?" Mr. WILCOX. Well, the International Silver Co. today is a little over 80 percent converted to war production; in other words, as far as my own company is concerned, the question of silver to fill the needs is not necessary; it is not of any interest whatsoever. We expect to be in 100 percent war production by the 1st of January. What I am trying to do, as the head of the Guild, is to protect the small manufacturers and the thousands of retailers throughout this country who, of necessity, will have to close shop unless they are allowed silver; that is, the production and resale and distribution of silver. Practically all of their goods have gone outside of their shops. Senator MALONEY. I think that is tremendously important because, as you know, more than one committee of Congress has been devoting special attention and a great deal of time and study to the problem of the so-called small businessman. Mr. WILCOx. That is correct. Senator MALONEY. And the small manufacturer. Do you know, offhand, approximately how many so-called small silver manufacturers there are? Mr. WILCOX. Well, I would say-in fact, I had to make that guess sometime ago, and it was around 150, but I believe the War Production Board dug up five or six hundred. Senator MALONEY. I noticed that at a hearing of the Small Business Committee a few days ago the Undersecretary of Commerce, Wayne Chatfield Taylor, anticipated the death of, I think he said, 300,000 small business concerns in the not too distant future. On the assumption that these small silver manufacturers are anxious to convert to war work as quickly as is possible, we might save about 600 small manufacturers from that death sentence if we appropriate 30,000,000 ounces of silver a year. Mr. WILCOX. Well, I think I would discount that a little bit; about four or five hundred now. Senator MALONEY. Thank you very much, Mr. Wilcox. Senator DANAHER. Mr. Chairman, I may never again get a chance. to make a record like this, and I would like, for the benefit of our colleagues, to bring out a fact or two. Mr. Wilcox, you are a native of the city of Meriden, Conn., are you not? Mr. WILCOX. Yes, sir. Senator DANAHER. And that is known as the Silver City? Mr. WILCOx. Of the world. Senator DANAHER. And it is also the birthplace of my distinguished colleague, the chairman of this subcommittee, Senator Maloney. Mr. WILCOX. Yes, sir. Senator DANAHER. And the birthplace of the junior Senator of Connecticut now questioning you, Mr. Wilcox? Mr. WILCOX. Yes, sir. Senator DANAHER. I cannot ignore the Silver City in this picture. I just want that clear. Senator CLARK of IDAHO. Mr. Chairman? Senator MALONEY. Senator Clark. Senator CLARK of Idaho. As long as your are making that kind of a record, showing a very great interest in it, and properly so, I want the record to show that the State of Idaho has the largest silver mine in the world. Senator DANAHER. I think the Senator from Idaho should know that in addition to the two Senators from the State of Connecticut, the present witness, Mr. Wilcox, is a former treasurer of the State of Connecticut and a former lieutenant governor of the State of Connecticut, and you are in important company this morning. Senator CLARK of Idaho. I appreciate that. Now, as far as the International Silver Co. is concerned, you think this bill would have very little effect on it one way or the other? Mr: WILCOX. Very little effect, Senator. Senator CLARK of Idaho. What proportion of manufactured silver products does the International Silver Co. produce, roughly? Mr. WILCOX. What proportion of what, sir? Senator CLARK of Idaho. Of silverware and silver products. Senator CLARK of Idaho. To all fabricated silver products. Mr. WILCOX. You mean of the whole industry? Senator CLARK of Idaho. Yes. I was wondering what proportion it would be. Mr. WILCOX. A minor part of it, to the whole industry. Senator CLARK of Idaho. Just a minor part? Mr. WILCOX. Yes, sir. Senator CLARK of Idaho. Do you think that these firms for which you are very conscientiously solicitous-and I am too, and I say that very candidly—that those firms will be materially injured or put out of business even if they are compelled to pay 71 cents an ounce for silver rather than, say, 50 cents an ounce? Mr. WILCOX. Unless there is some change in the O. P. A. rulings, I would say, yes, sir. Senator CLARK of Idaho. Have they put a ceiling on silverware or silver products? Mr. WILCOX. Well, I believe they have. In the last analysis, most silver-plated ware went out sometime ago, replaced by sterling-silver products. Senator CLARK of Idaho. Of course, the industry is practically out of the plate business anyway? Mr. WILCOX. The industry is entirely out of the plate business. Senator CLARK of Idaho. So that now they manufacture a silver product known by what term? Mr. WILCOX. Hollow ware and flatware. Senator CLARK of Idaho. And now practically all sterling? Mr. WILCOX. That is correct, sir. Senator CLARK of Idaho. Have there been any ceilings placed on sterling silver products? Mr. WILCOX. Well, yes; there has been a ceiling placed on sterlingsilver products. Senator CLARK of Idaho. There has? Mr. WILCOX. Yes, sir. Senator CLARK of Idaho. That is what I was trying to get at. Mr. WILCOX. Oh, ves, sir. Senator CLARK of Idaho. When were those ceilings placed on? Mr. WILCOX. That I cannot answer directly. Last May, I believe, on hollow and flatware. Senator CLARK of Idaho. Then you were purchasing silver in the world market at about what; 35? Mr. WILCOX. 35% cents. Senator CLARK of Idaho. 35% cents an ounce? Mr. WILCOX. Yes, sir. Senator CLARK of Idaho. And what O. P. A. and W. P. B. have jointly done, they have thrown you out of the world market, to all intents and purposes, after November 15? Mr. WILCOX. Yes, sir. Senator CLARK of Idaho. That is what W. P. B. has done, and O. P. A. has made it, as you say, impossible to operate by purchasing silver at 71 cents an ounce in the domestic market. Mr. WILCOX. Yes, sir. Senator CLARK of Idaho. Well now, frankly, I am very sympathetic with the position in which these small manufacturers and the large manufacturers of silver products find themselves, but what I am concerned about is whether or not there is not a better way of preserving them in business while they are converting, insofar as possible, to war work, than by legislation of this kind, particularly in its amended form, which would establish a principle of using, at least temporarily, silver held for monetary purposes, even though it is free and held in the Treasury, and releasing that directly for commercial purposes, Now, I speak for myself only, but I think it is probably the attitude of most of the Representatives of the silver producing States, that we are perfectly willing, by suitable legislation-not only willing, but anxious to have the Treasury use this free silver in war production work, and for nonconsumptive purposes too; that is, free silver; and the pledged silver for consumptive purposes in war work. I am wondering if it would not be a better approach to the thing to have W. P. B. loosen up on its order and permit you people to go into the foreign silver market, which certainly we have no objection to you doing, and never have had, as you know, and acquire your needs there to continue in business in your conversion and for those plants that cannot convert thereafter, and then let the Government, under a special bill, be authorized to use this free silver directly in war production work. Now, you may say that is a distinction without a difference, and in a sense it is, but at least it maintains all the principle of silver as a money metal, for which we have fought here since time immemorial. I don't know whether I make myself clear or not. Now, if your requirements are only going to be 30,000,000 ounces for the next year, according to your best estimate, I would personally like to see W. P. B. modify its order to the extent that you can purchase foreign silver to that extent, if you please, at 35 or 40 cents an ounce, which would be less than anything you could get under this bill, because this is 50, and still maintain the integrity of that silver which the Treasury holds, both pledged and unpledged, except as the Government desires to directly use it to help win this war. What I am afraid of here is that establishing this principle of turning loose silver held by the Treasury, which we consider is a money metal, for commercial purposes, we might open the tent so that the camel can get in and ultimately, which I think generally the silver trade wants to do, and I don't blame them, from their standpointrepeal the Silver Purchase Act. Of course this is more in the nature of a lecture than a question, but I still think your problem can be solved by the W. P. B. relenting on that order that it has issued, letting you go into the market to buy your silver at 35 or 40 cents an ounce, for foreign silver, and then those firms that can afford it and stay above the order, if they want to pay 71 cents, O. K., and then let Mr. Morgenthau come up here with a bill and we will discuss it with him. We have discussed it time and again, and I think we have expressed a willingness to pass any kind of legislation to let the Treasury take all the silver it needs for war purposes directly, because then your principal is not disturbed, and, by jove, I would like to see them take the gold too, but you cannot get the Secretary of the Treasury to agree with that. That is all. Senator MALONEY. Are there any further questions? You have the floor, Mr. Wilcox. Did you want to comment? Mr. WILCOX. No. I have listened very patiently, and I thank you very much for the lecture, Senator, but I would rather not go into that subject now. Senator MALONEY. Thank you very much. Senator GREEN. The next witness will be George A. Ingleby, president, New England Manufacturing Jewelers' and Silversmiths' Association. STATEMENT OF GEORGE A. INGLEBY, PRESIDENT, NEW ENGLAND MANUFACTURING JEWELERS' AND SILVERSMITHS' ASSOCIATION, PROVIDENCE, R. I. Mr. INGLEBY. Gentlemen, we are here in support of Senate bill 2768, a bill to authorize the use for war purposes of silver held or owned by the United States. We appear on behalf of the jewelry manufacturing industry, as represented by the New England Manufacturing Jewelers' and Silversmiths' Association, Inc. This association is a Rhode Island corporation founded in the city of Providence 55 years ago. It devotes itself to any and all efforts that soundly benefit the industry which it serves. It represents the industry both in New England and outside of New England. A list of its members is attached hereto as exhibit No. 1. (See p. 31.) Normal employment in the industry at the manufacturing level averages 32,000 workers. Estimates derived from figures submitted by the United States Employment Service on June 15, 1942, place employment in the industry at approximately 25,000 workers. This total has probably been reduced somewhat since this date. The decline in employment has been due to the restrictions upon materials formerly used by the industry. These materials include aluminum, tin, copper, nickel, steel and others, all of which materials are critical and were rightly prohibited by the War Production Board from being used in the production of the industry's products. The industry has at all times endeavored to cooperate with the War Production Board. The industry's inventories of critical materials either have been or are now in the process of being sold to the Government for use in the war effort in many cases at prices below their cost to the manufacturers. Since April 1941, this industry has individually and collectively worked aggressively toward the conversion of its normal production to war production. It is continuing to do so today with every means at its disposal. This association has employed an engineer to assist its members in this work and individually many of the plants within the industry have employed specialists both to assist in securing orders and in production. The task has been a difficult one, as the productive equipment within the industry consists, only to a limited extent, of a type of equipment necessary for the production of the bulk of available war work. To correct this situation, the industry has spent from its own financial resources very substantial sums for both capital equipment, particularly machine tools, and noncapital expenses in organizing to obtain and produce a product normally foreign to it and requiring somewhat different and more technical skills to produce. In a recent survey, with 99 concerns reporting, it was indicated that these concerns spent nearly $700,000 for capital equipment and an additional $200,000 for sales effort and other noncapital expenses in seeking and preparing to produce war work. These figures are extremely conservative. The total expenditures by the industry would undoubtedly exceed well over a million dollars. In order to determine the degree of conversion in the industry, a special survey was made by this association. Again using this sample study of 99 concerns, we found that these concerns were working |