Full text of Silver Purchase Act of 1934

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1178

73d CONGRESS.

SESS. II.

CH. 674.

JUNE 19, 1934.

[CHAPTER 674.]
June 19, 1934.
[H.R. 9745.]
[Public, No. 438.]

AN ACT
To authorize the Secretary of the Treasury to purchase silver, issue silver certificates, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
Aierica in Congress assembled, That the short title

ofSier Purchase Act United States of
Declarationofpolicy.

42.

Atep

Purchase

of; rates,

of this Act shall be the " Silver Purchase Act of 1934."
SEC. 2. It is hereby declared to be the policy of the United States

that the proportion of silver to gold in the monetary stocks of the
United States should be increased, with the ultimate objective of
having and maintaining, one fourth of the monetary value of such
stocks in silver.
SEC. 3. Whenever and so long as the proportion of silver in the
stocks of gold and silver of the United States is less than one-fourth

terms,
et.

of the monetary value of such stocks, the Secretary of the Treasury
is authorized and directed to purchase silver, at home or abroad,
for present or future delivery with any direct obligations, coin, or
currency of the United States, authorized by law, or with any funds
in the Treasury not otherwise appropriated, at such rates, at such
times, and upon such terms and conditions as he may deem reasonable

Pcesve price.
Purchase price, in
continental
United
States on May 1,1934.
Sales, when author-

and most advantageous to the public interest: Provided, That no
purchase of silver shall be made hereunder at a price in excess of
the monetary value thereof: And provided further, That no purchases

of silver situated in the continental United States on May 1, 1934,
shall be made hereunder at a price in excess of 50 cents a fine ounce.
SEC. 4. Whenever and so long as the market price of silver exceeds

its monetary value or the monetary value of the stocks of silver is
greater than 25 per centum of the monetary value of the stocks of
gold and silver, the Secretary of the Treasury may, with the approval
of the President and subject to the provisions of section 5, sell any
silver acquired under the authority of this Act, at home or abroad,
for present or future delivery, at such rates, at such times, and upon
such terms and conditions as he may deem reasonable and most
advantageous to the public interest.
SEC. 5. The Secretary of the Treasury is authorized and directed
to issue silver certificates in such denominations as he may from

Ssiver ofrtieinations; restriction,

time to time prescribe in a face amount not less than the cost of all
silver purchased under the authority of section 3, and such certificates

Bullion reserves, shall be placed in actual circulation.

Certiftcates

to be

There shall be maintained in

the Treasury as security for all silver certificates heretofore or
hereafter issued and at the time outstanding an amount of silver
in bullion and standard silver dollars of a monetary value equal to
the face amount of such silver certificates. All silver certificates
heretofore or hereafter issued shall be legal tender for all debts,
public and private, public charges, taxes, duties, and dues, and shall

Trransation

in

be redeemable on demand at the Treasury of the United States in
standard silver dollars; and the Secretary of the Treasury is authorized to coin standard silver dollars for such redemption.
silSEC. 6. Whenever in his judgment such action is necessary to effectuate the policy of this Act, the Secretary of the Treasury is authorized, with the approval of the President, to investigate, regulate, or
prohibit, by means of licenses or otherwise, the acquisition, importation, exportation, or transportation of silver and of contracts and
other arrangements made with respect thereto; and to require the
filing of reports deemed by him reasonably necessary in connection

Penalty
for violations
of licensing
provisions.

therewith.

Whoever willfully violates the provisions of any license,

order, rule, or regulation issued pursuant to the authorization contained in this section shall, upon conviction, be fined not more than
$10,000 or, if a natural person, may be imprisoned for not more than

73d CONGRESS.

SESS. II.

CH. 674.

JUNE 19, 1934.

1179

ten years, or both; and any officer, director, or agent of any corporation who knowingly participates in such violation may be punished
by a like fine, imprisonment, or both.
Executive order reSEC. 7. Whenever in the judgment of the President such action quiring
silver delivery
Treasury.
to
Executive
by
may
is necessary to effectuate the policy of this Act, he
order require the delivery to the United States mints of any or all
silver by whomever owned or possessed. The silver so delivered shall Coinage.
be coined into standard silver dollars or otherwise added to the
monetary stocks of the United States as the President may determine; and there shall be returned therefor in standard silver dollars,
or any other coin or currency of the United States, the monetary Seigniorage, etc., de
value of the silver so delivered less such deductions for seigniorage, ductions.
brassage, coinage, and other mint charges as the Secretary of the
Treasury with the approval of the President shall have determined:
ed
r
ro.
Provided, That in no case shall the value of the amount returned
market
fair
be
must
the
of
order
such
of
time
the
therefor be less than the fair value at
silver required to be delivered as such value is determined by the value.
market price over a reasonable period terminating at the time of
such order. The Secretary of the Treasury shall pay all necessary Expenses.
costs of the transportation of such silver and standard silver dollars,
coin, or currency, including the cost of insurance, protection, and
such other incidental costs as may be reasonably necessary. Any Hoarding.
silver withheld in violation of any Executive order issued under this
section or of any regulations issued pursuant thereto shall be forfeited to the United States, and may be seized and condemned by Penalties.
like proceedings as those provided by law for the forfeiture, seizure,
and condemnation of property imported into the United States contrary to law; and, in addition, any person failing to comply with
the provisions of any such Executive order or regulation shall be
subject to a penalty equal to twice the monetary value of the silver
in respect of which such failure occurred.
.
SEC. 8. Schedule A of title VIII of the Revenue Act of 1926, as Stamptaxes
Vol. 44, p. 103; Vol.
275.
p.
47,
end
the
at
adding
by
amended (relating to stamp taxes), is amended
thereof a new subdivision to read as follows:
Sales and transfers of
" 10. SILVER, AND SO FORTH, SALES AND TRANSFERS.-On all transfers
e
s
interest
such
which
for
price
the
if
bullion,
of any interest in silver
is or is to be transferred exceeds the total of the cost thereof and Transfer stamps;
allowed expenses 50 per centum of the amount of such excess. On
u
every such transfer there shall be made and delivered by the transaffixed
be
shall
there
feror to the transferee a memorandum to which
lawful stamps in value equal to the tax thereon. Every such memorandum shall show the date thereof, the names and addresses of
the transferor and transferee, the interest in silver bullion to which
it refers, the price for which such interest is or is to be transferred
and the cost thereof and the allowed expenses. Any person liable Delive"ing slve bulfor payment of tax under this subdivision (or anyone who acts in affixedmemorandum.
the matter as agent or broker for any such person) who is a party
to any such transfer, or who in pursuance of any such transfer delivers any silver bullion or interest therein, without a memorandum
stating truly and completely the information herein required, or who
delivers any such memorandum without having the proper stamps
affixed thereto, with intent to evade the foregoing provisions, shall Penalty
be deemed guilty of a misdemeanor, and upon conviction thereof
shall pay a fine of not exceeding $1,000 or be imprisoned not more
than six months, or both. Stamps affixed under this subdivision canceling stams.
shall be canceled (in lieu of the manner provided in section 804) by vol. 44, p.100
such officers and in such manner as regulations under this subdivision shall prescribe. Such officers shall cancel such stamps only if
it appears that the proper tax is being paid, and when stamps with LMtj.
respect to any transfer are so canceled, the transferor and not the

1180

73d CONGRESS.

Expenses allowed

Loses

attributable

trkethangs.

apprvos

of genea

SESS. II.

CH. 674.

JUNE 19, 1934.

transferee shall be liable for any additional tax found due or penalty
with respect to such transfer. The Commissioner shall abate or
refund, in accordance with regulations issued hereunder, such portion of any tax hereunder as he finds to be attributable to profits (1)
realized in the course of the transferor's regular business of furnishing silver bullion for industrial, professional, or artistic use and (a)
not resulting from a change in the market price of silver bullion,
or (b) offset by contemporaneous losses incurred in transactions in
interests in silver bullion determined, in accordance with such regulations, to have been specifically related hedging transactions; or (2)
offset by contemporaneous losses attributable to changes in the market price of silver bullion and incurred in transactions in silver
foreign exchange determined, in accordance with such regulations,
to have been hedged specifically by the interest in silver bullion
transferred. The provisions of this subdivision shall extend to all
transfers in the United States of any interest in silver bullion, and

to all such transfers outside the United States if either party thereto
is a resident of the United States or is a citizen of the United States
who has been a resident thereof within three months before the date
of the transfer or if such silver bullion or interest therein is situated
in the United States; and shall extend to transfers to the United
States Government (the tax in such cases to be payable by the transferor), but shall not extend to transfers of silver bullion by deposit
or delivery at a United States mint under proclamation by the
President or in compliance with any Executive order issued pursuant
to section 7 of the Silver Purchase Act of 1934. The tax under this
subdivision on transfers enumerated in subdivision 4 shall be in
Trandertaxtoead-

Temiconstrued.

Tras.

addition to the tax under such subdivision.

This subdivision shall

apply (1) with respect to all transfers of any interest in silver
bullion after the enactment of the Silver Purchase Act of 1934, and
(2) with respect to all transfers of any interest in silver bullion on
or after May 15, 1934, and prior to the enactment of the Silver Purchase Act of 1934, except that in such cases it shall be paid by the
transferor in such manner and at such time as the Commissioner,
with the approval of the Secretary of the Treasury, may by regulations prescribe, and the requirement of a memorandum of such transfer shall not apply.
"As used in this subdivision" The term ' cost ' means the cost of the interest in silver bullion
to the transferor, except that (a) in case of silver bullion produced
from materials containing silver which has not previously entered
into industrial, commercial, or monetary use, the cost to a transferor who is the producer shall be deemed to be the market price
at the time of production determined in accordance with regulations
issued hereunder; (b) in the case of an interest in silver bullion
acquired by the transferor otherwise than for valuable consideration,
the cost shall be deemed to be the cost thereof to the last previous
transferor by whom it was acquired for a valuable consideration;
and (c) in the case of any interest in silver bullion acquired by the
transferor (after April 15, 1934) in a wash sale, the cost shall be
deemed to be the cost to him of the interest transferred by him in
such wash sale, but with proper adjustment, in accordance with regulations under this subdivision, when such interests are in silver
bullion for delivery at different times.
"The term 'transfer' means a sale, agreement of sale, agreement
to sell, memorandum of sale or delivery of, or transfer, whether
made by assignment in blank or by any delivery, or by any paper
or agreement or memorandum or any other evidence of transfer or
sale; or means to make a transfer as so defined.

73d CONGRESS.

SESS. II.

" The term ' interest in silver bullion ' means any title or claim to,,
or interest in, any silver bullion or contract therefor.
"The

term

'allowed

expenses'

1181

CH. 674. JUNE 19, 1934.

means usual

and necessary

expenses actually incurred in holding, processing, or transporting
the interest in silver bullion as to which an interest is transferred
(including storage, insurance, and transportation charges but not
including interest, taxes, or charges in the nature of overhead),
determined in accordance with regulations issued hereunder.

neSt in siloer
"Allowedexpenses."

" The term ' memorandum ' means a bill, memorandum, agreement,

"Memorandum."

SEC. 9. The Secretary of the Treasury is hereby authorized to

Rules

or other evidence of a transfer.
" The term ' wash sale' means a transaction involving the transfer "wash sale."
of an interest in silver bullion and, within thirty days before or
after such transfer, the acquisition by the same person of an interest
in silver bullion. Only so much of the interest so acquired as does
not exceed the interest so transferred, and only so much of the interest so transferred as does not exceed the interest so acquired, shall
be deemed to be included in the wash sale.
"The term 'silver bullion' means silver which has been melted, "silver bullion."
smelted, or refined and is in such state or condition that its value
depends primarily upon the silver content and not upon its form."
issue, with the approval of the President, such rules and regulations
as the Secretary of the Treasury may deem necessary or proper to
carry out the purposes of this Act, or of any order issued hereunder.
SEC. 10. As used in this ActThe term " person" means an individual, partnership, association,

or corporation;
The term " the continental United States " means the States of the
United States, the District of Columbia, and the Territory of
Alaska;
The term "monetary

value" means a value calculated on the

and
b

rela-

Terms construed.
"Person."
"ContinentalUnited
tt
"Monetary value.

basis of $1 for an amount of silver or gold equal to the amount at
the time contained in the standard silver dollar and the gold dollar,
respectively;

The term "stocks of silver" means the total amount of silver at

"Stocks o silver.

The term " stocks of gold " means the total amount of gold at the

"stocks of old."

the time owned by the United States (whether or not held as security
for outstanding currency of the United States) and of silver contained in coins of the United States at the time outstanding;

time owned by the United States, whether or not held as a reserve
or as security for any outstanding currency of the United States.
SEC. 11. There is authorized to be appropriated, out of any money Appropriation auin the Treasury not otherwise appropriated, the sum of $500,000, thoA,.p lo.
which shall be available for expenditure under the direction of the
President and in his discretion, for any purpose in connection with
the carrying out of this Act; and there are hereby authorized to be Annzual sumsautorappropriated annually such additional sums as may be necessary for
such purposes.
SEC. 12. The right to alter, amend, or repeal this Act is hereby
expressly reserved. If any provision of this Act, or the application

Rightsreserved.

Saingprovisions.

thereof to any person or circumstances, is held invalid, the remainder
of the Act, and the application of such provision to other persons
or circumstances, shall not be affected thereby.
SEC. 13. All Acts and parts of Acts inconsistent with any of the

provisions of this Act are hereby repealed, but the authority conferred in this Act upon the President and the Secretary of the
Treasury is declared to be supplemental to the authority heretofore
conferred.
Approved, June 19, 1934, 9 p.m.

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