A monthly publication by and for members of
The Silver Users Association

MARKET WATCH Month High Low Average August 6.87 6.52 6.69 July 6.71 5.94 6.37 June 6.17 5.63 5.85 May 6.19 5.51 5.85 April 8.21 5.82 7.06 March 7.94 6.71 7.29 February 7.94 6.04 6.47 January 6.63 6.20 6.36 back to top HOUSE AND SENATE PASS CONFERENCE AGREEMENT WITH R&D CREDIT IS VICTORY FOR MANUFACTURERS Explaining that sustained U.S. economic growth depends more than ever on the innovation derived from research and development, the Silver Users Association welcomed last month?s overwhelming passage in both the House and Senate of an extension of the critical R&D tax credit retroactive to its expiration last June. ?The manufacturing sector accounts for roughly two-thirds of private sector R&D,? stated Paul Miller, SUA?s Exective Director. ?The R&D credit promotes R&D investments that, in turn, benefit our nation?s economy with the innovation and productivity they spawn. The credit is used by nearly 16,000 companies and applies only to R&D work performed in the U.S. ?Our U.S. economy and our manufacturing sector in particular have shown promising signs for several quarters, and it would have been a shame had Congress not managed to get this R&D extension done,? Miller said. SUA will work with other groups to continue pushing for enhancements to and permanent extension of the R&D credit. Noting that the R&D credit has expired 11 times since its creation, Miller said companies have found long-term R&D planning difficult. ?Continued economic growth and job creation are inextricably linked to our commitment to long-term research here in the U.S. Manufacturers believe a strengthened and permanent R&D credit will encourage more American businesses to engage in crucial research while otherwise making the U.S. a more attractive place to do business,? he concluded. back to top SOFT PATCH OR MIRED IN MUCK? The economy is chugging along in what Federal Reserve Chairman Alan Greenspan calls a "soft patch." The wheels are spinning but slowly. The conventional wisdom is that the soft patch is a temporary phenomenon and that better times lie ahead. The nation is "in the early stages of a multiyear expansion characterized by solid US and global growth, higher interest rates, and mild but persistent inflation," maintains David Malpass, an economist at Bear Stearns & Co. But others worry that the economic news continues to be mixed. For example: Retail sales fell in August 0.3 percent from July. The current-account deficit, the broadest measure of the nation's trade and financial interactions with the rest of the world, rose to a record $166.18 billion in the second quarter. Such a deficit is a drag on the US economy. Industrial production rose 0.1 percent in August from July. At least that was a gain, though most economists were expecting a better number. Such numbers are open to interpretation. The National Association of Manufacturers trumpeted that the manufacturing component of the industrial production number surged "a healthy 0.5 percent." "Manufacturing production is now at a record high, surpassing the previous peak of June 2000," notes NAM economist David Huether. Yet many economists are troubled. While most don't forecast a dip back into a slump, some see a weak expansion ahead. They point to several looming perils. One is that huge current-account deficit. It means that the United States is spending about $1.8 billion more per day abroad, primarily to buy foreign goods and services, than foreigners are spending in the US. This deficit amounts to 5.7 percent of gross domestic product, the nation's total output of goods and services. The deficit "poses great risks for the US economy," says Robert Scott, an economist with the Economic Policy Institute (EPI), a Washington think tank. Here's how: Such an international deficit must be financed by foreigners buying US Treasury securities. Lately, that has been done mostly by governments, primarily in China, Japan, and Taiwan. More and more private foreign investors have been moving to the sidelines to avoid dollar assets. Mr. Scott calls it "a quiet run on the dollar." If the "run" worsens, the US would have to hike interest rates to attract more foreign buyers, even though such a move would slow growth domestically. EPI economists say the next president should tackle this issue by calling a meeting of key governments. The goal would be to make an agreement similar to the Plaza Accord of 1985, a deal that helped lower the value of the dollar in relation to other currencies and thereby reduced the large US trade deficit of that time. Mr. Greenspan sounds less concerned. In an article in the latest issue of the Cato Journal, Mr. Greenspan writes that "spreading globalization has fostered a degree of international flexibility that has raised the probability of a benign resolution to the US current account imbalance." Nonetheless, he sees one caveat: that the trade deficit could erode this flexibility and lead to "creeping protectionism." Another peril to the economy is high energy prices, in part a result of the insurgency in Iraq. OPEC set higher quotas for production last Wednesday. Oil prices have fallen back from more than $50 a barrel to about $43. They were $16.57 in November 2001. But oil prices are less important to the US economy than in the past, economists argue. A related challenge: the "terrorist tax" - the cost of the Iraq conflict, homeland security, and increased business uncertainty. Then there's the relatively slow growth in jobs, much discussed in the presidential election campaign, and the slim rise in wages. Last week, the Bureau of Labor Statistics reported that average weekly earnings in August were up 2.9 percent from 12 months earlier, but only 0.4 percent after taking account of inflation. In nominal dollars, that translates to an extra $17.93 a week in the average worker's paycheck. Total employee compensation has risen more than that, because of the sharp increase in corporate health-insurance costs. But workers don't get that part of their compensation to spend as they wish. "It will be hard to keep the recovery going if we don't get more employment growth - and an increase in real wages," says Charles Schultze, chairman of the Council of Economic Advisers under President Carter. If consumer spending doesn't pick up - it accounts for two-thirds of all spending - economists wonder what will keep the recovery afloat. The economic stimulus from the Bush tax cut is "done," says Irwin Kellner, an economist at Hofstra University in Hempstead, N.Y. The rise in mortgage interest costs has closed the door on refinancing for many homeowners. And the Fed could well raise interest rates slightly again when its policymakers meet Tuesday. Dr. Schultze figures one reason for the slow growth in jobs is a surprising surge in productivity. But he wishes business would cut profits to pay better. back to top ENGLER VOWS TO FIGHT FOR SMM?S Former Michigan Governor and newly elected President of the National Association of Manufacturers, John Engler told its members that NAM?s Small and Medium Manufacturers (SMM) Directors that the organization is well-suited to win victories on issues named most important by SMMs: health care costs, tort reform and trade. Engler said it is important for the NAM to push for judges who interpret the law and don?t act as mini-legislatures that strike down reforms of the legal system. back to top NAM TRADE MISSION HELPS SMM?S EXPLORE CHINA MARKET China ?s rapidly growing economy is creating major new export opportunities for U.S. manufacturers but doing business there is challenging even for the most sophisticated companies. For small and medium manufacturers (SMMs) the challenges are particularly formidable. The NAM ?s first trade mission to China , which President Jerry Jasinowski led on September 11-18, sought to help several SMMs overcome these challenges and lay the groundwork for helping others in the future. Al-Jon, Inc. (crushing equipment), Revere Copper (premium-quality copper products), Sandmeyer Steel (specialty steel) and Softbrands, Inc. (manufacturing software) were among the NAM SMMs that participated in the mission. With NAM and U.S. Foreign Commercial Service assistance, the companies were able to meet with potential customers and distributors and learn from the experiences ? both good and bad ? of U.S. manufacturers already established in China . All of the companies were enthusiastic about the trade mission and the business contacts they were able to make within such a short time. While in Beijing, Jasinowski signed a cooperative agreement with the China Council for the Promotion of International Trade aimed at helping SMMs access trade information and contacts in China. In addition, the NAM will be working with the U.S. Commerce Department to help member companies access new trade assistance for China that Under Secretary for International Trade Grant Aldonas announced during the mission?s visit. New initiatives include a China business center in Washington that features a comprehensive trade information Web site at www.export.gov/china, more support for SMMs to participate in Chinese industry fairs, and the first steps toward establishing American export centers in rapidly growing provincial capitals. ?The Commerce Department offers a variety of trade facilitation services in the United States and China that many SMMs are not effectively using,? said Jasinowski. ?The NAM needs to get the word out to its members about these excellent services and encourage more companies to use them.? back to top SENATOR SNOWE INTRODUCES BILL TO HELP SMALL BUSINESSES Small businesses will find it easier to comply with complex and confusing federal regulations, if a bill recently introduced by Senator Olympia Snowe (R-ME) becomes law. The Small Business Compliance Assistance Enhancement Act of 2004 (S. 2834) amends the 1996 Small Business Regulatory Enforcement Fairness Act, a law that bolsters the Office of Advocacy?s ability to reduce regulatory barriers that can stifle entrepreneurial growth. S. 2834 places new emphasis on compliance guides that agencies are required to write so that small businesses can better understand complex rules and regulations. ?Senator Snowe?s bill goes a long way to ensure that federal agencies issue compliance guides that are helpful for the small business community,? said Thomas M. Sullivan, Chief Counsel for Advocacy. ?The bill also recognizes that small businesses often need compliance help before new rules go into effect.? Making compliance easier is crucial to the success of small business. Office of Advocacy statistics show that it annually costs the smallest of businesses almost $7,000 per employee to comply with federal regulations. That cost places a burden on small business that is 60 percent greater than costs incurred by large corporations. The Office of Advocacy, the ?small business watchdog? of the government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats and it funds research into small business issues. back to top AIR DRAMATICALLY CLEANER SINCE 1970 PASSAGE OF CLEAN AIR ACT The Foundation for Clean Air Progress (FCAP) released ?America?s Clean Little Secret: Healthier Air for a New Century,? a study that analyzed Environmental Protection Agency (EPA) data to find that America?s air quality has grown cleaner and healthier since enactment of the Clean Air Act in 1970. The exhaustive analysis shows that America?s air quality continues to improve dramatically, but related Wirthlin poll numbers indicate an overwhelming majority of the public is misinformed about this environmental progress. Though the data are irrefutable and show that the six major pollutants targeted by the Clean Air Act have been drastically reduced, even as our population, economy, energy usage and vehicle miles driven have increased, seven out of 10 Americans are under the false impression that we?ve made no progress or have actually seen our air quality deteriorate during the past 30 years. When more than 70 percent of the public has got it totally wrong on air quality progress, and 85 percent report that their primary source for environmental information is the media, it stands to reason that those of us who communicate environmental information to the media, as well as the media themselves, must do a much better job. America?s best scientists, engineers and manufacturers have managed to improve our nation?s overall energy efficiency by an astounding 46 percent during the past 30 years. But most Americans don?t know that either, and industry has itself to blame. The most recent EPA data (collected in 2001-2002) found that: Nowhere in the United States were unhealthy levels of nitrogen dioxide measured. Nowhere in the United States were unhealthy levels of sulfur dioxide measured. Only three of the 3,132 U.S. counties exceeded lead standards (all three have lead smelters). Only three of the 3,132 U.S. counties exceeded carbon monoxide standards (all were due to localized conditions that are being or have been addressed). This study examines the other two criteria pollutants ? ozone (smog) and particulates (soot) ? in greater depth and finds that ?while impressive progress has been made in reducing both the number of days these standards are exceeded and the severity of those exceedances, these new National Ambient Air Quality Standards (NAAQS) raised the bar for each pollutant, consequently increasing the number of measured exceedance days. The study also examines one industry -- electricity generation -- in detail, tracing that industry?s progress in reducing emissions and analyzing additional measures that will build on that progress. back to top SIX MONTH STAY GIVEN TO FAX RULES The vote is official today from the Federal Communications Commission (FCC), and a new six-month stay of the proposed fax regulations has been granted. SUA and the Fax Ban Coalition are extremely grateful to the hundreds of organizations who joined us in support of a Petition for Stay of these proposed rules. Associations and businesses now have until July 1, 2005, before the rules are set to go into effect - time that will be used to obtain a legislative solution that restores the "established business relationship" provision so that legitimate, business-to-business and association-to-member fax communications can continue unimpeded. As has been reported earlier this week, the Senate Commerce, Science and Transportation Committee filed its report Sept. 29 on the fax bill (S. 2603), which it passed July 22, meaning that the bill is now ready to move to the Senate floor for a full vote. The full House passed the companion bill, H.R. 4600, on July 20. back to top PRECIOUS METALS PRICES PUSH HIGHER Precious metals and copper prices have risen sharply in recent trading days. Gold (December Comex) reached $420.80 during the day Thursday, 30 September, up from $407.50 at one point Monday, 27 September. Gold settled at $419.90. Silver prices settled at $6.938 (December Comex), after touching $6.98. Silver was $6.395 on Monday. Platinum (October Nymex) rose from $855 Monday to $884 on Tuesday, only to fall back sharply on profit taking. Platinum touched $845 on Wednesday, before recovering to settle at $861 on Thursday, 30 September. The active October contract is now deliverable, and has 26,050 ounces of open interest left in it. This is down from 236,800 ounces as recently as Monday, 20 September. There are 20,950 ounces of registered platinum stocks. December Nymex palladium bounced off of a low of $205 two weeks ago, on Monday, 20 September. It settled at $224.75 on 30 September. Copper settled at $1.396 (December Comex) on 30 September, up from an already-strong $1.30 on 20 September. Prices have risen due to investor and bank buying, spurred by a number of factors. The U.S. dollar has been weak, while oil prices have moved to test major resistance at record prices around $50 per barrel. World tensions have increased, and equity markets are extremely volatile. In this environment, investors are buying insurance in the form of precious metals. Tight supplies for silver and copper are adding to the upward pressure in these markets. Precious metals prices may move higher over the next few trading days. Gold is testing resistance at $420. A move above it could see prices run to $430, $440, or even higher. Silver is testing $7.00. Above that there is modest resistance at $7.25 and $7.75. A move above $7.00 could see a spike similar to the one witnessed in the first quarter of this year. Platinum prices may have peaked this week. The fundamentals are not supportive of higher prices, but platinum would be hard pressed to decline in prices if gold and silver are rising sharply, as part of a commodities-wide investor buying binge. Copper, also, is looking top-heavy, but some funds are looking for a major spike to record levels above $1.50. Some funds are expecting palladium to run to $260; others expect $280. back to top THE NEXT PRESIDENT: ON THE RECORD MOST IMPORTANT MANUFACTURING ISSUES What are the most important public policy issues that must be addressed to ensure a strong economic future for manufacturing in the U.S.? Why are these the most important? President Bush: According to a study published by the National Association of Manufacturers, external overhead costs from taxes, health and pension benefits, tort litigation, regulation, and rising energy prices add approximately 22% to U.S. manufacturers' unit labor costs (nearly $5 per hour worked) relative to their major foreign competitors. The costs are too high, and I have laid out a comprehensive six-point plan to reduce these costs. My plan will strengthen the economy and create jobs by making health care more affordable and accessible; reforming the legal system to prevent frivolous lawsuits that increase the cost of doing business; promoting affordable, reliable, and secure energy supplies; streamlining government regulations, especially for small businesses; pursuing free and fair trade agreements that create jobs; and making tax relief for families and small businesses permanent. Taken together, these policies will lower the costs of doing business and allow entrepreneurs and business owners to spend fewer resources on bureaucratic hassles and more on creating jobs and raising salaries for workers. Senator Kerry: John Kerry and John Edwards understand that providing for a strong economic future for manufacturing means reforming health care, making trade work for America, and cutting our budget deficit and freeing up more capital for investment. Health care reform is needed to end the runaway costs of premiums and make businesses more competitive. Under George Bush, health care premiums have risen 40% -- making it harder for employers to hire new people, especially since manufacturers often [offer] some of the best health care benefits to their employees. America should be engaged in the global economy, but one that works for America. Our manufacturing industries should never be put at an unfair disadvantage because our government is sitting on the sidelines instead of fighting to enforce our trade laws, including opening up foreign markets and preventing dumping, currency manipulation, and other unfair trade practices. Kerry and Edwards have a plan to cut the budget deficit in half, restraining the growth of government spending, and paying for all their campaign initiatives. Cutting the deficit will free up more capital for productive investment by America's businesses. In addition, Kerry and Edwards support programs to encourage venture capital for small- and mid-sized manufacturing companies. TRADE What is your operating trade philosophy and how will it benefit U.S. manufacturing? Would you limit offshoring of U.S. jobs? If so, how? Bush: We need to keep America the best place in the world to do business by remaining committed to free and fair trade and by ensuring a level playing field. Foreign companies recognize the quality of American workers, and that is one of the reasons why so many have chosen to locate plants here. More than 6 million Americans draw their paychecks from foreign companies, and these Americans are better off because we are an optimistic, successful trading nation. By keeping our markets open, we are helping American producers, businesses, and workers have the opportunity for free and fair trade. We are also creating the right conditions for our companies to compete with and outperform the world. And we are seeing results: American exports were at a record high in May. Sales of American-made automobiles, engines, and parts rose by 1.3% in May for another record high; industrial supplies, including chemicals and plastic materials, also hit an all-time high of $17.3 billion in May; and exports of capital goods, such as airplanes and industrial engines, climbed to $28.8 billion. With 95% of the world's population living outside of the United States, exports are vital to the strength and the prosperity of the [nation's] economy. A retreat into economic isolationism would endanger our economic recovery, cost jobs, lead to higher prices for consumers, and put American companies at a competitive disadvantage. Kerry: John Kerry and John Edwards believe that we need to make global trade work for America. A Kerry-Edwards administration will support U.S. manufacturing by ending tax breaks for companies who move jobs overseas and will cut taxes for 99% of corporations that keep jobs in America. The Kerry-Edwards plan will end a special break that allows companies to defer paying taxes on income earned abroad, closing the foreign tax deferral loophole that encourages companies to send jobs overseas. The savings will be used to cut the corporate tax rate by 5% and provide a New Jobs Tax Credit to manufacturers affected by outsourcing, giving them a break on federal payroll taxes for every new job created in America. As president, John Kerry will use the full strength of our trade agreements and domestic trade laws, including anti-dumping, countervailing duties, and surge protections, to ensure that trade works for America. John Kerry will call for a 120-day review of all existing trade agreements and increased resources for trade enforcement. HEALTH CARE How do you address U.S. business leaders' concerns about the cost and scope of health-care coverage? Bush: My Administration has acted to make health care more affordable and more available for families, workers, and small business owners. We have created health savings accounts, which combine flexible, affordable insurance options for small businesses and individuals with the opportunity to save money for out-of-pocket medical costs in a tax-free account. To reduce the burden of health care costs on small business owners and employees, I have proposed the creation of Association Health Plans, so small businesses can pool together to negotiate lower health care costs and provide health insurance to their employees. I have also proposed $70 billion in tax credits to help working Americans buy health care coverage. And I am fighting rising health costs by rooting out fraud and abuse, working to eliminate frivolous lawsuits, and promoting wider use of health information technology to improve quality, reduce errors, and cut administrative waste. Kerry: Skyrocketing health care costs place a dangerous burden on American businesses and make it harder for them to succeed. Since Bush took office, the cost of family health insurance has increased by 40% -- a total premium increase of more than $2,600. The Kerry-Edwards plan will provide up to $1,000 in premium relief for employers who do the right thing by offering their employees quality health coverage. [The] plan will help make health care more affordable for all employers and employees by helping out with certain high cost health cases -- providing approximately 10% in annual savings. The Kerry-Edwards plan will have the federal government pick up 75% of the cost of catastrophic health claims for employers, freeing up the capital they need to expand and create jobs. The Kerry-Edwards plan will also cut administrative costs and eliminating waste, fraud, and abuse; enhance disease management efforts; improve the use of information technology to cut billions in administrative costs; make malpractice insurance more affordable by stopping frivolous lawsuits; and make prescription drugs more affordable through reimportation and other measures. All of these measures will improve health outcomes and expand access to affordable health care while reducing the burden of health care costs on businesses. TORT REFORM How do you respond to U.S. business leaders' concerns about the burden and cost of litigation? Bush: Our nation's litigation system is broken, and consumers, small business owners, and employees are paying the price. We need reform that is fair and just, that ensures every person has his or her day in court, and that prevents baseless litigation from hindering our economy's growth. Trial lawyers are clogging the courts with frivolous and junk lawsuits, driving up the cost of doing business and costing Americans their jobs in health care. Junk lawsuits jeopardize access to care for America's families. I have proposed a medical liability reform plan that will reduce the number of frivolous lawsuits, lower health care costs for businesses and employees, and help maintain strong doctor-patient relationships. My proposal would ensure that injured persons are fully compensated for their economic losses, while reasonably limiting non-economic damages to $250,000. Reasonable punitive damages are available in egregious cases and my proposal requires judgments to be paid in proportion to fault. I support legislation that will eliminate the waste, inefficiency, and unfairness of multiple overlapping class action cases by making class actions removable to Federal courts when a certain level of damages [is] at stake. The legislation also includes a consumer class action bill of rights to ensure that the benefits of class action settlements go to the people who are injured rather than to wealthy trial lawyers. Finally, we must pass a plan for asbestos litigation reform that protects victims with asbestos-related injuries while preserving the security of dozens of companies and tens of thousands of jobs. Kerry: John Kerry and John Edwards will work to ensure that our legal system is working to establish the rules and incentives that are needed for the economy to function -- without wasting time or money. One way we punish wrongdoing and deter misconduct is through our courts. Our courts -- and in particular, the juries of regular citizens at their heart -- play a central role in making sure that even the most powerful interests are held accountable, and even the most vulnerable people have protections. At the same time, there is no question that abuses of our legal system have hurt companies and individuals who are acting responsibly. Frivolous malpractice lawsuits and class actions waste good people's time and money. That's wrong, and John Kerry and John Edwards support reforms that prevent and punish these abuses -- while at the same time preserving the principles of responsibility and fairness that make our system work. ENERGY What provisions in your energy policy would help ensure a healthy future for U.S. manufacturing? Bush: One of the most pressing challenges facing manufacturers today is the high cost of natural gas. The manufacturing industry uses nearly 40% of the nation's natural gas to meet its energy needs. In my National Energy Policy, I called for increasing environmentally responsible domestic natural gas production to reduce energy costs, which will help U.S. manufacturing stay competitive in the global marketplace and prevent good-paying jobs from moving overseas. My Administration has implemented several initiatives to help reduce costs and increase domestic production. My 2005 budget includes $104.4 million for the Bureau of Land Management to continue making significant progress in reducing permitting backlogs and expediting access to energy resources, including natural gas. Also, this year I announced new incentives for natural gas development in hard-to-reach areas of the Gulf of Mexico. Those incentives will save American consumers an estimated $570 million per year and create as many as 26,000 jobs. Finally, my Administration continues to work with Congress to encourage and accelerate construction of a commercially viable Alaska natural gas pipeline to bring new domestic natural gas supplies to the continental United States. Our country needs a national energy policy and I will continue to push the Congress to pass my policy. Kerry: John Kerry and John Edwards' energy plan will embrace a simple but revolutionary goal: harnessing new energy sources to power the world we live in. Kerry and Edwards are committed to stimulating investment in new renewable energy throughout the nation, creating jobs and lifting incomes in rural areas as well as in the high tech and manufacturing sectors. With a strong domestic renewable energy industry, the U.S. economy will benefit from this industry's large export potential. As president, John Kerry will establish a New Energy and Conservation Trust Fund that will be capitalized by existing oil and gas royalty revenues and dedicated to accelerating the commercialization of innovative technologies, such as the manufacture of more efficient cars and trucks, the development of biofuels, and the creation of a clean, secure, hydrogen-based energy economy. Kerry and Edwards have outlined a comprehensive energy plan that will reduce oil dependence. Their plan will tap America's initiative and ingenuity to strengthen our national security, grow our economy, and protect our environment. REGULATION How do you respond to U.S. business leaders' complaints about the burden and cost of complying with federal regulations? Bush: Decreasing the regulatory burden on our nation's businesses is a critical part of my plan to stimulate the economy, create jobs, and foster prosperity for all Americans. Excessive paperwork and bureaucratic regulations can hinder a company's ability to do business by diverting funds that could otherwise be used to invest in new equipment, hire new workers, or increase wages. I am pursuing a "smart" regulation agenda, which involves modernizing existing rules and adopting new rules only when justified by sound science, economics, and law. We are seeing results. We have reduced regulatory costs and are saving money for business owners. The average annual economic cost of new regulations under my Administration is 75% less than it was under the previous Administration. And the overall burden of government-mandated paperwork declined in 2003 for the first time since 1996. Kerry: John Kerry and John Edwards will implement regulatory reforms that are pro-market and pro-consumer. Too often, the Bush Administration has used regulatory reform to bail out corporations rather than promote true competition. As a result, regulations are standing in the way of efficiency. Overregulation is an unnecessary burden on businesses, and a Kerry-Edwards administration will see that regulations are adequately reformed to make it easier for manufacturers to compete. BIG VS. SMALL COMPANIES How do you respond to those executives in small- and medium-sized manufacturing companies who assert their public policy needs are different than those of the multinationals? Bush: The needs of small and medium businesses are different from the needs of multinationals. And our policies have reflected these differences whenever possible. I know that small businesses are vital to our nation's prosperity and are responsible for creating more than 70% of new jobs. I have acted to help small businesses and the people they employ by reducing taxes, encouraging investment, and removing obstacles to growth. Because we passed the most sweeping tax relief package in a generation, more money is in the hands of small business owners who are investing it in new equipment and new workers. By quadrupling to $100,000 the amount that small businesses can expense on things like computers and machinery, and by sending the death tax on its way to extinction, entrepreneurs can invest more in ways that benefit their employees and strengthen the economy. And because 90% of small businesses pay taxes at individual rates, the across-the-board income tax cuts have extended relief to 25 million small business owners and entrepreneurs. If Congress fails to act and make this relief permanent, many of those small business owners will see their taxes increase. Kerry: Kerry and Edwards are committed to listening to the needs of both large and small manufacturing companies. The needs of small and medium-sized manufacturers are different from those of multinationals, but they do not need to be mutually exclusive. The interests of multinational companies will not be met at the expense of smaller companies. As the former Chairman and current Ranking Member of the Senate Small Business and Entrepreneurship Committee, John Kerry has been a national leader in promoting small businesses growth and will continue to do so as president. back to top U.S. COMMODITIES FUTURES TRADING COMMISSION RESPONDS TO ALLEGATIONS OF SILVER MARKET MANIPULATION The U.S. Commodities Futures Trading Commission (CFTC) formally responded to allegations of silver market manipulation in a nine-page letter, dated Friday, May 14, 2004. The comprehensive letter, signed by the Director of the CFTC's Division of Market Oversight, Michael Gorham, states that the CFTC has found no evidence that the silver market has been manipulated. A full copy of the CFTC letter, which includes a point-by-point response to various concerns expressed by investors who contacted the Commission, can be found on the Commission's web site at, http://www.cftc.gov/files/opa/press04/opasilverletter.pdf. back to top ASSOCIATION NEWS Please send us your press releases and/or company announcements, so that we can include them in SUA?s monthly newsletter. Special thanks too Mitsui & Company and Ames Goldsmith for their sponsorship of the fall meeting. Don?t forget to register for the fall meeting. Don?t forget, please feel free to bring any potential prospective SUA members at no cost (other than their travel & room). back to top About SUA The Silver Users Association is a non-profit organization that was established in 1947 to represent the interests of companies that make, sell and distribute products and services in which silver is an essential component. The Washington Report is a member service of the Silver Users Association. If you want to be removed from this mailing list, please reply to this e-mail and include "unsubscribe" in the subject line plus your name and company.