U.S. DEPARTMENT OF COMMERCE 

Daniel C. Roper, Secretary 

BUREAU OF FOREIGN AND DOMESTIC COMMERCE 

Frederick M. Feiker, Director 

+ 

Trade Promotion Series—No. 149 

THE MONETARY USE OF 

SILVER IN 1933 

BY 

HERBERT M. BRATTER 

Finance and Investment Division 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1933 

For sale by the Superintendent of Documents, Washington, D.C. Price 10 cents 

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CONTENT S 

Foreword _ 

INTRODUCTION 

Page 

Silver as a standard of value 1 

Silver as a medium of exchange.__ 1 

Silver as legal tender and subsidiary money 2 

Silver certificates 2 

Attributes of a subsidiary coinage; 

fiduciary coin 2 

Limits within which gold-standard 

countries may freely employ 

silver 3 

Where silver is a preferred medium 

of exchange 4 

Where silver coin is not in circulation 4 

Statutory limits on subsidiary silver coinage 4 

Page 

VI 

Page 

More silver legally issuable in 

many countries 5 

Changes in fineness—Sales of demonetized silver 5 

Net consumption in coinage, 1900 

to 1931, by selected countries. _ 7 

Silver in reserves of central banks. 10 

Recent exchange rates 11 

Paper currency statistics 12 

Gold reserves of world 13 

Leading silver-producing countries _ _ 14 

Coinage in colonies, mandated 

areas, and spheres of influence. 14 

Conversion equivalents 14 

SURVEY BY COUNTRIES 

Abyssinia. See Ethiopia.

 Page 

Aden and Protectorate 15 

Afghanistan 15 

Alaska. See United States. 

Albania 16 

Algeria 16 

Anglo-Egyptian Sudan 17 

Angola 17 

Antigua. See Leeward Islands. 

Argentina 18 

Australia 18 

Austria 19 

Azores 20 

Bahamas 20 

Barbados 21 

Belgian Congo 21 

Belgium 21 

Bermuda 22 

Bolivia 22 

Brazil 23 

British Baluchistan. See British 

India. 

British East Africa 24 

British Empire 25 

British Guiana 26 

British Honduras 26 

British India 27 

British North Borneo 31 

British Oceania 32 

British Somaliland 32 

British West Africa 32 

British Virgin Islands. See Leeward Islands. 

Page 

Brunei 33 

Bulgaria 33 

Canada 35 

Canary Islands 35 

Cape of Good Hope.- See Union 

of South Africa. 

Cape Verde Islands 36 

Ceylon 36 

Channel Islands (Guernsey and 

Jersey) 36 

Chartered Company of Mozambique. See Mozambique. 

Chile 37 

China 38 

Chosen 43 

Colombia 43 

Comminio. See Malta. 

Costa Rica 45 

Cuba 47 

Curacao. See Netherland West 

Indies. 

Cyprus 47 

Cyrenaica. See Libya. 

Czechoslovakia 48 

Danzig, Free City of 49 

Denmark 49 

Dominica. See Leeward Islands. 

Dominican Republic 50 

Dutch Guiana. See Netherland 

West Indies. 

Ecuador 50 

Egypt 52 

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IV CONTENTS 

SURVEY BY COUNTRIES—Continued 

Page 

Eritrea 52 

Estonia 53 

Ethiopia 54 

Falkland Islands 55 

Fiji Islands 56 

Finland 56 

France 56 

Free City of Danzig. See Danzig, 

Free City of. 

French Colonies 58 

French Equatorial Africa 60 

French Guiana 58 

French Indo-China 58 

French Oceania 59 

French Somaliland 60 

French West Africa 60 

French West Indies 60 

Gambia. See British West Africa. 

Germany 60 

Gibraltar 62 

Goa 62 

Gold Coast. See British West 

Africa. 

Gozo. See Malta. 

Greece 63 

Greenland 63 

Guadeloupe. See French West 

Indies. 

Guam. See United States. 

Guatemala . 63 

Guernsey. See Channel Islands. 

Haiti 64 

Hawaii, Territory of. See United 

States. 

Hedjaz, and dependencies 64 

Honduras 65 

Hong Kong 66 

Hungary 68 

Hyderabad 69 

Iceland 70 

Iraq 70 

Irish Free State 71 

Italian Somaliland 72 

Italy 72 

Jamaica 74 

Japan 74 

Jebel Druze, Government of. See 

Syria. 

Jersey. See Channel Islands. 

Kenya. See British East Africa. 

Kwantung Leased Territory. See 

China. 

Latakia, Government of. See 

Syria. 

Latvia 75 

Lebanese Republic. See Syria. 

Leeward Islands 76 

Liberia 77 

Libya 77 

Liechenstein 77 

Lithuania 77 

Luxembourg, Grand Duchy of 78 

Macao 78 

Madagascar - — 78 

Page 

Madeira 79 

Malta 79 

Manchuria. See China. 

Marquesas Islands. See French 

Oceania. 

Martinique. See French West 

Indies. 

Mauritius 79 

Mexico 80 

Midway Islands. See United 

States. 

Mongolia 82 

Montserrat. See Leeward Islands. 

Morocco, French Zone 83 

Morocco, Spanish Zone 83 

Mozambique 85 

Natal. See Union of South Africa. 

Nejd. See Hedjaz. 

Netherland India 85 

Netherland West Indies 87 

Netherlands 87 

New Caledonia 88 

New Guinea, Eastern 88 

New Hebrides, British and French 

Condominium of 89 

Newfoundland 89 

New Zealand 89 

Nicaragua 91 

Nigeria. See British West Africa. 

Norway 92 

Nyasaland 92 

Orange Free State. See Union of 

South Africa. 

Palestine 93 

Panama 93 

Panama Canal Zone 95 

Papua. See New Guinea, Eastern. 

Paraguay 95 

Pargana of Spiti. See British 

India. 

Persia 95 

Peru 96 

Philippine Islands 98 

Poland 101 

Pondicherry 102 

Portugal 102 

Portuguese East Africa. See 

Mozambique. 

Portuguese Guinea 104 

Puerto Rico. See United States. 

Reunion 104 

Rhodesia, Northern 104 

Rhodesia, Southern 105 

Rio de Oro 106 

Rumania 106 

St. Kitts-Nevis. See Leeward Islands. 

Salvador — 107 

Samoa (American). See United 

States. 

Samoa, Western ___ 108 

San Marino, Republic of 108 

Sarawak 109 

Siam 109 

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V 

CONTENT S 

SURVE Y BY COUNTRIES—Continue d 

Page 

Sierra Leone. See British West 

Africa. 

Society Islands. See French Oceania. 

Sonthal Parganas. See British 

India. 

South West Africa, British Mandated Territory of 110 

Spain 111 

Straits Settlements 112 

Sunjab du Alexandrette. See 

Syria. 

Surinam. See Netherland West 

Indies. 

Sweden 114 

Switzerland 116 

Syria 117 

Taiwan 118 

Tanganyika. See British East 

Africa. 

Tibet 118 

Tobago. See Trinidad. 

Transvaal. See Union of South 

Africa. 

Page 

Tra van core 119 

Trinidad 119 

Tripolitania. See Libya. 

Tunisia 119 

Turkey 120 

Uganda. See British East Africa. 

Union of Soviet Socialist Republics 

(Russia) 121 

Union of South Africa 122 

United Kingdom 123 

United States 126 

Uruguay 132 

Vatican City 134 

Venezuela 135 

Virgin Islands 136 

Wake Islands. See United States. 

Windward Islands 136 

Yap. See United States. 

Yugoslavia 136 

Zanzibar 137 

Stock of silver in various countries. 138 

Addendum 141 

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FOREWORD 

The prominence lately assumed by silver in discussions of world 

currency, make the present study of the position of the metal in the 

world's monetary systems particularly timely. This is a strictly 

factual bulletin, prepared in the Finance and Investment Division 

from information in its files and the Department's library, supplemented by reports submitted specifically for this study by a considerable number of representatives of the Departments of State and 

Commerce in foreign countries. The present bulletin is one of 

several studies of silver made by the same author, the most recent 

one, The Silver Market, Trade Promotion Series No. 139, being 

principally a treatment of the economic aspects of the production 

and distribution of silver. 

The position of silver in the monetary systems of most countries 

is distinctly subordinate. Very few countries have silver as their 

standard of value, namely, China, Hong Kong, Macao, and Tibet. 

Even China now legally impedes the free movement of silver in certain forms into and out of the country. Several other countries rely 

on silver as their chief medium of exchange, but do not make it 

their standard of value, having adopted some form of the gold 

standard de jure or de facto. British India and Persia come under 

this category. Contrary to an impression held by some persons, 

neither these two countries, nor Australia, New Zealand, Mexico, 

or any other Latin American country employ silver as standard of 

value. 

In a number of countries, the study shows, considerable stocks of 

silver are held. While those of China and India are the most important and the best known, there are significant supplies of the 

metal in circulation or in the monetary reserves of Spain, Germany, 

France, the United States, and other countries. The bulletin contains detailed information on the legal provisions relating to silver, 

on the position of silver in the reserves of banks of issue, the circulation of silver coin, the attitude of foreign countries toward 

silver, and the possibility of increased use thereof without new legislation. The survey not only covers foreign countries, but includes 

a detailed description of the position of silver in the United States 

currency system. 

FREDERICK M. FEIKER , Director, 

Bureau of Foreign amd Domestic Commerce. 

APRI L 1933 . 

VI 

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THE MONETARY USE OF SILVER IN 1933 

INTRODUCTION 

This study of the present use of silver throughout the world is presented by countries, the subject being examined under four heads: (1) 

Present legal provisions; (2) possibility of increased use of silver 

without new legislation; (3) attitude toward silver; (4) present employment of silver. Obviously, the position of silver in the currency 

systems of the world varies greatly, and it is not possible conveniently 

to tabulate the results of the present investigation. None the less, 

certain general observations become possible, and these are presented 

in the pages immediately following, together witli certain data 

believed pertinent. At the end there is a summary table. 

SILVER AS A STANDARD OF VALUE 

Silver is the standard of value in but few countries today. The 

full silver standard exists where silver is the standard of value; 

where in effect free coinage (i.e., coinage unlimited as to maximum 

amount) exists for the metal; where silver is unlimited legal tender; 

where there is ready interchangeability of the other currency of the 

country with silver, with no maximum limit as to quantity; and where 

there is full freedom to import and export silver. There is scarcely a 

silver-using country in the world, except Hong Kong, which fulfills 

all these requirements. China, last important stronghold of silver, 

has certain restrictions on silver imports and a duty on certain silver 

exports, but these technical impairments of the silver standard are 

not serious in that country's case. Other countries which may be 

classed as on the silver standard are Macao and Tibet. The currency 

in use in Ethiopia and Afghanistan is silver, but there are restrictions 

on the movements of the metal. Persia, British India, Ceylon, and 

Mexico are not on the silver standard, contrary to the belief in some 

quarters. The four countries just mentioned, also Ethiopia, and all 

other countries not on the silver standard are normally on some form 

of the gold standard, or have recently taken steps toward adoption of 

gold. 

SILVER AS A MEDIUM OF EXCHANGE 

There is evidently little inclination abroad to use silver in other 

than a subsidiary capacity. But this capacity is an important one. 

All countries require various low-denomination coins, a purpose for 

which silver is peculiarly suited. The metal is durable, attractive, 

and easily recognizable. Moreover, it is neither too rare nor too 

plentiful for the purpose, and it lends itself readily to the technical 

processes of minting. There are, however, certain limitations in 

the employment of silver as a subsidiary currency metal, as indicated 

below. 

l 

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2 MONETARY USE OF SILVER IN 19 3 3 

SILVER AS LEGAL TENDER AND SUBSIDIARY MONEY 

Although silver is relegated to the position of a subsidiary metal 

in most countries of the world, there is no uniformity as to its status. 

In a few gold-standard countries where, ipso facto, free coinage of 

silver does not exist, silver currency is unlimited legal tender de 

jure. Such is the case in British India, Ceylon, Mexico, Netherland 

India, Netherland West Indies, Netherlands, Persia, Siam, and 

Spain; and smaller countries and colonies like Aden, British East 

Africa, British Somaliland, British West Africa, Goa, Hyderabad, 

Pondicherry, Travancore, Zanzibar, and the Spanish colonies. Silver currency is unlimited legal tender by specific provision of law 

or by custom in Hong Kong, where the nearest approach to the 

full silver standard exists, and in China (including Manchuria), 

Afghanistan, Ethiopia, Liberia, Macao, Mongolia, and Hedjaz. 

In the United States silver subsidiary coin is limited legal tender, 

but the so-called standard silver dollars and the silver certificates 

which represent them are full legal tender except where otherwise 

specified in the contract. 

Subsidiary silver coin, while limited in legal tender, is as a general rule accepted by Governments in tax and other payments without limit as to amount. In this way, if not otherwise, the demand 

for the different denominations of money in circulation can be 

adjusted. 

SILVER CERTIFICATES 

In addition to the United States, countries employing currency 

certificates redeemable only in silver include British India, British 

Somaliland, Ceylon, China (including Manchuria), Colombia, 

Costa Rica, Ethiopia, Goa, Hong Kong, Hyderabad, Kwantung 

Leased Territory, Macao, Morocco, Netherlands, Panama,1 Philippine Islands,1 Pondicherry, Travancore, and Zanzibar. 

In Spain and the Spanish colonies the notes of the Bank of Spain 

may be classed as silver certificates, not because they are not redeemable in gold, but because, in practice, the Bank of Spain redeems 

them in silver coin, which is its prerogative. 

With reference to the above lists, distinction should be made between those countries where silver is full legal tender and those, like 

the Netherlands, where the certificates are redeemable in the limitedlegal-tender currency only. Again, a separate list might be made 

of those countries whose notes are redeemable in silver coin (e.g., the 

rupee) itself ultimately, in normal times, redeemable in gold. The 

silver certificates of the United States fall into this category not 

by specific provision of law, but by the general tenor of the goldstandard act of 1900. 

ATTRIBUTES OF A SUBSIDIARY COINAGE; FIDUCIARY COIN 

A coinage is subsidiary when the minting thereof is legally limited 

as to amount; when its value as currency is—by law—greater 

than its value as metal; when it is limited as to legal tender; when it 

is convertible, in reasonable quantities, into the standard money 

1 American silver certificates are used in such Caribbean countries as the Virgin Islands, 

Cuba, Panama and the Canal Zone, British Honduras, etc. They also circulate in the 

Philippine Islands, where silver certificates are locally issued as well. 

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3 MONETARY USE OF SILVER IN 19 3 3 

of the country; and when its denominations are smaller than the 

monetary unit of the country. All subsidiary money is fiduciary, 

because its value as currency rests on the public's faith in the Government's ability to maintain such value. Coin which has all the abovelisted attributes, except that of being smaller in denomination 

than the unit, is not subsidiary, but is fiduciary. 

It is desirable that fiduciary coins have a value as bullion sufficiently low to avoid their being melted down, upon a forseeable rise 

in the price of their principal metal, for example, silver. If they 

should be withdrawn from circulation and melted, great public 

inconvenience might result. This, indeed, has happened in our 

own history, as witness the scarcity of silver coin during the Civil 

War. Moreover, during the period of an abnormally high price 

of silver in 1919-20 the same thing threatened to occur again, when 

the price of silver at one time rose slightly above the bullion value 

of our subsidiary silver coinage. To avoid a recurrence of this risk 

Neil Crothers, in his book, Fractional Money, states (p. 289) : " The 

proper remedy is to reduce the proportion of pure silver in the coins, 

with a proportionate increase in the copper. The size, design, and 

wording need not be changed. This plan involves no delays whatever. 

The only significant change in the coins is an alteration in color. 

In 1920 England adopted this method, delaying so long after the 

crisis had arrived that a law was hastily passed reducing the fineness of the silver coins from 92% percent to 50 percent." 

While it is desirable to mint subsidiary coin with a seigniorage 

sufficiently large to avoid such danger, the content of subsidiary 

coin should be sufficiently valuable, as bullion, to avoid temptation to 

counterfeiters. Against the latter risk there are, of course, certain 

other protective devices. 

LIMITS WITHIN WHICH GOLD-STANDARD COUNTRIES MAY 

FREELY EMPLOY SILVER 

Since in every country there is normally a certain minimum 

demand for currency as a medium of exchange, it is possible within 

that limit to vary the character of the money, whether metal or 

paper, with the utmost freedom. Such stock of money may consist in whole or part of commodity money, or it may be entirely 

fiduciary. Within this limit nations may safely substitute copper 

for nickel, nickel for silver, or silver for gold-secured paper without affecting the price level. Recently, as this study shows, this 

principle has been resorted to in Germany, France, Colombia, 

Cuba, Mexico, Poland, and Spain, as a device to improve the gold 

ratio. The same principle made safe the substitution in many 

countries of base metal coins or small notes for silver during the 

World War scarcity of the metal. Countries which did this were, 

for example, the Netherlands, Japan, Straits Settlements, France, 

Belgium, and Greece. 

From this it does not follow that there is no other limit to the 

amount of silver coin which may be issued. Experience of the United 

States proves that when coins become too cumbersome a more convenient medium of exchange is demanded. Also, in Germany, where 

large quantities of 5-mark silver pieces were lately put in circulation, 

there has arisen much complaint of the inconvenience occasioned by 

the forced acceptance of the heavy coins, and steps are now being 

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4 MONETARY USE OF SILVER IN 19 3 3 

taken to substitute smaller coins. It appears that in modern countries 

accustomed to the use of banknotes and checks, there is a practical 

limit to the amount of metal which may be put into circulation. 

WHERE SILVER IS A PREFERRED MEDIUM OF EXCHANGE 

In certain less-advanced countries, on the other hand, a large part 

of the population shows a distinct preference for silver rather than 

paper currency. Particularly is this the case in the backward countries of Africa and Asia, and occasionally in tropical countries, where 

paper money is in danger of destruction by insects. Countries in 

these categories are those of the Arabian peninsula, Afghanistan, 

Algeria, Anglo-Egyptian Sudan, British (and other) India, Ceylon, 

China (with some local exceptions), Eritrea, Iraq, Mexico, Netherland India, Persia, and Syria. 

WHERE SILVER COIN IS NOT IN CIRCULATION 

In several countries there are no silver coins in active circulation. 

Among these are Albania, Argentina, Belgian Congo, Belgium, 

Denmark, Finland, Paraguay, and Turkey. For a number of years 

prior to the latter part of March 1933 no silver had circulated in 

France, and practically none in any French colony except French 

Indo-China and Pondicherry. The recent issuance of silver by the 

French Government will undoubtedly be followed by the circulation 

of the new coins in the colonies where the coinage system of France 

applies. (See French Colonies.) Turkey, as mentioned elsewhere, 

is expected soon to issue silver coins. 

STATUTORY LIMITS ON SUBSIDIARY SILVER COINAGE 

Subsidiary silver coinage in various countries is limited either 

according to the discretion of the treasury or a currency board, or by 

specific restriction in the currency law. In the United States, United 

Kingdom, and most other countries silver is minted only as demand 

for such coin arises; the law places no limit on the amount of 

subsidiary currency. 

On the other hand, various countries specifically limit by law the 

amount of subsidiary coin. The limit may be so much per capita, or 

it may be a specific figure. In some cases the law specifies how 

much coin of each metal may be issued. In other cases the proportion of silver coin to total subsidiary coin is subject to variation at 

the discretion of the mint or treasury authorities. Germany, for 

example, limited the amount of silver coin to 30 reichsmarks per 

capita; Latvia, to 30 lats per capita; and Lithuania, to 6 litas per 

capita; while Poland limited the total of silver, nickel and copper 

coins to 320,000,000 zlote, of which 140,000,000 zlote were to be of 

silver. 

A third group of countries issues silver coin irregularly, in amounts 

and denominations specified by separate enactment. Thus, France 

in 1928 passed a law authorizing the issuance within a certain time 

of 3,000,000,000 francs in silver 10- and 20-franc coins, details of the 

law being subsequently amended. In Italy the legal authorization 

for silver coinage specifies the amount of each denomination which 

may be put into circulation. 

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5 MONETARY USE OF SILVER IN 19 3 3 

In some countries, particularly colonies, new issues of silver coin 

cannot be made without authorization from abroad. Greece, for 

example, requires the approval of the International Financial Commission, which was established before the World War to protect 

foreign loans made to Greece. 

Nearly all countries have, at one time or another, passed special 

legislation for the issuance of commemorative coins. Such issues 

may fall within the limits defined in the law, or they may be 

authorized in addition to the coinage previously provided. 

MORE SILVER LEGALLY ISSUABLE IN MANY COUNTRIES 

While a considerable number of countries have limited by law the 

amount of silver currency, not all such countries have in circulation 

all the silver legally issuable. Thus, if necessary, a certain additional amount of silver could be put into circulation there. In other 

countries, where there is no legal limit, more silver may be issued 

without formality. The general practice, however, is to issue silver 

coin only as public demand for subsidiary money requires. Countries where, it is believed, the use of silver coin may be increased 

without new legislation include the following. It should be borne 

in mind that the law is not always definite on this point and that it 

is frequently a matter of opinion whether new legislation would be 

necessary. In a few cases exact information is not on hand. 

Afghanistan Greece Palestine 

Albania Hedjaz Panama 

Anglo-Egyptian Sudan Honduras Persia 

Argentina (?) Hong Kong Peru 

Australia Hungary Philippine Islands 

Austria Hyderabad Poland 

Belgium 2 Iraq Pondicherry 

Brazil Irish Free State Portugal2 

British Honduras Italy 2 Salvador 

British India Japan Sarawak 

Bulgaria Latvia Siam (?) 

Canada Liberia Spain (?)

 2 

Ceylon Liechenstein Straits Settlements 

Chile Lithuania Sweden 

China Mauritius Tibet 

Costa Rica (?) Mexico (?) Union of Soviet Socialist 

Czechoslovakia Nejd Republics 

Ethiopia Netherland India United Kingdom 2 

France2 New Zealand United States2 

French Indo-China Newfoundland (?) 

Goa Nicaragua 

CHANGES IN FINENESS—SALES OF DEMONETIZED SILVER 

The amount of silver in monetary use in a country is naturally 

affected by a change in the fineness of the silver coins. The widespread lowering of the fineness of coins after the World War and 

the large sales of demonetized silver which followed are frequently 

alluded to. The more important changes in this respect were designed to prevent melting of the coins by the public. Again, 

the fineness of the silver coins may be altered in order to make the 

silver currency more popular. It seems very likely that such a 

change may soon be made in German coinage, where in March a 

plan was reported under consideration to alter the 5-mark coin and 

withdraw the 1-mark silver piece. Under the proposal all the exist2 Including colonies and territories where currency of mother country circulates. 

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6 MONETARY USE OF SILVER IN 19 3 3 

ing 5-mark silver pieces would be withdrawn from circulation and, 

in their place, there would be issued 5-mark coins smaller in size 

but with the same silver content. 

From 1919 to 1932, inclusive, it is estimated no less than 541,000,000 

fine ounces of silver obtained from demonetized coin have been sold 

on the world market. The principal single source of this silver since 

1927 has been British India. Important amounts have been sold by 

the United Kingdom, French Indo-China, France, Siam, Belgium, 

the Union of Soviet Socialist Republics, Mexico, and Egypt. For 

convenience the following table, brought down to date, is republished 

from Trade Promotion Series No. 139, The Silver Market. 

ESTIMATED SALES OF DEMONETIZED SILVER, 1920-32 , ACCORDING TO COUNTRY OF 

ORIGIN 

[Millions of fine ounces] 

Year 

United 

Kingdom 

Other 

European 

countries 

British 

India 

French 

IndoChina 

Other 

countries 

Total, all 

countries 

1920_ _ 27.0 

1 30.0 

19.0 

20.0 

18.0 

23.0 

2 7.0 

2 8.0 

2 32.0 

2 10.0 

2 3 22.0 

27.0 

36.5 

43.0 

45.0 

20.0 

30.0 

7.7 

18.4 

60.0 

67.0 

71.5 

68.5 

46.6 

1921 6.5 

24.0 

25.0 

2.0 

7.0 

.7 

1.2 

5.5 

10.0 

(

3) 

(

3) 

27.0 

1 30.0 

19.0 

20.0 

18.0 

23.0 

2 7.0 

2 8.0 

2 32.0 

2 10.0 

2 3 22.0 

27.0 

36.5 

43.0 

45.0 

20.0 

30.0 

7.7 

18.4 

60.0 

67.0 

71.5 

68.5 

46.6 

1922 

6.5 

24.0 

25.0 

2.0 

7.0 

.7 

1.2 

5.5 

10.0 

(

3) 

(

3) 

27.0 

1 30.0 

19.0 

20.0 

18.0 

23.0 

2 7.0 

2 8.0 

2 32.0 

2 10.0 

2 3 22.0 

27.0 

36.5 

43.0 

45.0 

20.0 

30.0 

7.7 

18.4 

60.0 

67.0 

71.5 

68.5 

46.6 

1923 

6.5 

24.0 

25.0 

2.0 

7.0 

.7 

1.2 

5.5 

10.0 

(

3) 

(

3) 

27.0 

1 30.0 

19.0 

20.0 

18.0 

23.0 

2 7.0 

2 8.0 

2 32.0 

2 10.0 

2 3 22.0 

27.0 

36.5 

43.0 

45.0 

20.0 

30.0 

7.7 

18.4 

60.0 

67.0 

71.5 

68.5 

46.6 

1924 

6.5 

24.0 

25.0 

2.0 

7.0 

.7 

1.2 

5.5 

10.0 

(

3) 

(

3) 

27.0 

1 30.0 

19.0 

20.0 

18.0 

23.0 

2 7.0 

2 8.0 

2 32.0 

2 10.0 

2 3 22.0 

27.0 

36.5 

43.0 

45.0 

20.0 

30.0 

7.7 

18.4 

60.0 

67.0 

71.5 

68.5 

46.6 

1925- . . 

6.5 

24.0 

25.0 

2.0 

7.0 

.7 

1.2 

5.5 

10.0 

(

3) 

(

3) 

27.0 

1 30.0 

19.0 

20.0 

18.0 

23.0 

2 7.0 

2 8.0 

2 32.0 

2 10.0 

2 3 22.0 

27.0 

36.5 

43.0 

45.0 

20.0 

30.0 

7.7 

18.4 

60.0 

67.0 

71.5 

68.5 

46.6 

1926 . . 

6.5 

24.0 

25.0 

2.0 

7.0 

.7 

1.2 

5.5 

10.0 

(

3) 

(

3) 

27.0 

1 30.0 

19.0 

20.0 

18.0 

23.0 

2 7.0 

2 8.0 

2 32.0 

2 10.0 

2 3 22.0 

27.0 

36.5 

43.0 

45.0 

20.0 

30.0 

7.7 

18.4 

60.0 

67.0 

71.5 

68.5 

46.6 

1927.. 

6.5 

24.0 

25.0 

2.0 

7.0 

.7 

1.2 

5.5 

10.0 

(

3) 

(

3) 

27.0 

1 30.0 

19.0 

20.0 

18.0 

23.0 

2 7.0 

2 8.0 

2 32.0 

2 10.0 

2 3 22.0 

9.2 

22.5 

35.0 

29.5 

35.0 

24.0 

27.0 

36.5 

43.0 

45.0 

20.0 

30.0 

7.7 

18.4 

60.0 

67.0 

71.5 

68.5 

46.6 

1928 

6.5 

24.0 

25.0 

2.0 

7.0 

.7 

1.2 

5.5 

10.0 

(

3) 

(

3) 

27.0 

1 30.0 

19.0 

20.0 

18.0 

23.0 

2 7.0 

2 8.0 

2 32.0 

2 10.0 

2 3 22.0 

9.2 

22.5 

35.0 

29.5 

35.0 

24.0 

27.0 

36.5 

43.0 

45.0 

20.0 

30.0 

7.7 

18.4 

60.0 

67.0 

71.5 

68.5 

46.6 

1929 

6.5 

24.0 

25.0 

2.0 

7.0 

.7 

1.2 

5.5 

10.0 

(

3) 

(

3) 

27.0 

1 30.0 

19.0 

20.0 

18.0 

23.0 

2 7.0 

2 8.0 

2 32.0 

2 10.0 

2 3 22.0 

9.2 

22.5 

35.0 

29.5 

35.0 

24.0 

12.0 

20.0 

6.4 

10.0 

27.0 

36.5 

43.0 

45.0 

20.0 

30.0 

7.7 

18.4 

60.0 

67.0 

71.5 

68.5 

46.6 

1930 

6.5 

24.0 

25.0 

2.0 

7.0 

.7 

1.2 

5.5 

10.0 

(

3) 

(

3) 

27.0 

1 30.0 

19.0 

20.0 

18.0 

23.0 

2 7.0 

2 8.0 

2 32.0 

2 10.0 

2 3 22.0 

9.2 

22.5 

35.0 

29.5 

35.0 

24.0 

12.0 

20.0 

6.4 

10.0 

27.0 

36.5 

43.0 

45.0 

20.0 

30.0 

7.7 

18.4 

60.0 

67.0 

71.5 

68.5 

46.6 

1931 _ 

6.5 

24.0 

25.0 

2.0 

7.0 

.7 

1.2 

5.5 

10.0 

(

3) 

(

3) 

27.0 

1 30.0 

19.0 

20.0 

18.0 

23.0 

2 7.0 

2 8.0 

2 32.0 

2 10.0 

2 3 22.0 

9.2 

22.5 

35.0 

29.5 

35.0 

24.0 

12.0 

20.0 

6.4 

10.0 

* 27.4 

6 1.0 

27.0 

36.5 

43.0 

45.0 

20.0 

30.0 

7.7 

18.4 

60.0 

67.0 

71.5 

68.5 

1932 46.6 

6.5 

24.0 

25.0 

2.0 

7.0 

.7 

1.2 

5.5 

10.0 

(

3) 

(

3) 

5 11.6 

9.2 

22.5 

35.0 

29.5 

35.0 

24.0 

12.0 

20.0 

6.4 

10.0 

* 27.4 

6 1.0 

27.0 

36.5 

43.0 

45.0 

20.0 

30.0 

7.7 

18.4 

60.0 

67.0 

71.5 

68.5 

46.6 

Total 

5 11.6 

9.2 

22.5 

35.0 

29.5 

35.0 

24.0 

12.0 

20.0 

6.4 

10.0 

* 27.4 

6 1.0 

27.0 

36.5 

43.0 

45.0 

20.0 

30.0 

7.7 

18.4 

60.0 

67.0 

71.5 

68.5 

46.6 

Total 81.9 227.6 155.2 48.4 28.4 541.2 

1 Germany accounted for 8,000,000 of this total. 

2 Of the 79,000,000 ounces reported as sold by Europe from 1926 to 1930, inclusive, 66,000,000 came from 

France and 13,000,000 from Belgium. 

3 In 1930 and 1931 additional supplies came to London from Europe and from the debasement of British 

coinage. These were all used in the manufacture of coin for other countries and are not shown in this 

table. 

4 20,000,000 ounces from Siam, 4,200,000 from Mexico, and 2,900,000 from Egypt. 

5 Union of Soviet Socialist Republics. 

6 Near Eastern sales. 

NOTE.—Estimates given in this table are those of Handy and Harman, New York City. The 1932 estimates are subject to revision. 

The fine content of the silver coinage has been lowered since 1919 

by various countries, including: 

Austria 

Brazil 

Bulgaria 

Canada 

Ceylon 

Chile 

Costa Rica3 

Czechoslovakia 

Danzig 

Estonia 

France 

French Indo-China 

Germany 

Greece 

Hungary 

Irish Free State 

Italy 

Japan 

Latvia 

Lithuania 

Mexico 

Netherlands 

Netherland India 

Persia 

Peru 

Poland 

Portugal 

Rumania 

Siam 

Straits Settlements 

Switzerland 

United Kingdom 

Yugoslavia 

The use of silver as currency has been discontinued since 1914 in 

the following countries: Belgium,4 Denmark,4 Finland, Norway, Turkey,4 and until March 1933, France.5 

3 Law of Sept. 7, 1917. 

1 Including colonies. 

5 Expected soon to issue silver coins. 

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7 MONETARY USE OF SILVER IN 19 3 3 

Regarding sales of demonetized silver, countries which may sell 

such silver in the near future include British India, British West 

Africa, Estonia, Germany, Guatemala, Netherlands, Siam, and the 

Union of Soviet Socialist Republics. 

In contrast with the above, Czechoslovakia and Turkey are likely 

to use silver for coinage in the near future, while a well-known 

Buenos Aires economist has recommended that Argentina employ 

some silver in its currency system. Coinage programs involving 

silver are now under way for China, Czechoslovakia, France, Iraq, 

New Zealand, Persia, Poland, Portugal, and Yugoslavia. Silver 

coinage programs for Germany, French Indo-China, Panama, Colombia, Cuba, and Danzig were recently completed. 

NET CONSUMPTION IN COINAGE, 1900 TO 1931, BY SELECTED 

COUNTRIES 

In the following review of the consumption of silver in coinage 

China is not included because of the inadequacy of statistical data 

and because coinage is not the sole index of monetary consumption 

in a country where silver in a variety of forms passes as currency, 

while coins circulate on the basis of their value as bullion. 

During the 30-year period from 1900 to 1929 the largest net consumption of silver in coinage was that of British India (863,400,000 

fine ounces), followed by the United States (236,000,000 ounces). 

These two countries absorbed over half the total for the 15 selected 

countries tabulated below. Russia and Mexico followed (with approximately 150,000,000 fine ounces each), in turn followed by Germany, Japan, French Indo-China, and Austria and Hungary considered as a unit. 

The consumption of silver for coinage purposes by the 15 countries 

was subject to considerable variation from year to year. In the 

United States, for example, net coinage of silver was heaviest in 

1900-1904, and during the years of Pittman Act purchases, from 

1920 to 1926. British India's coinage demand, also, was irregular, 

varying with economic conditions in that country. Apart from the 

unusually heavy demand (497,000,000 ounces) during the war and 

post-war period 1916-20, the heaviest net coinage consumption in 

India took place in the years 1903-7, when 233,000,000 fine ounces 

were coined by the mints. Since 1922 there has been a net annual 

return of silver from circulation. 

Russia's coinage between 1900 and 1929 was very irregular. The 

heaviest consumption by the mint occurred in 1904, 1915-16, and 

1924r-25. Mexico coined substantial amounts in 1900-1901, 1903, and 

1920-24. Germany's net consumption was largest in the years 

1924-26 and Japan's in 1917, when the large amount of 67,200,000 

fine ounces (net) was consumed. 

During the 5-year period 1927-31 the average annual net consumption by the selected countries was in some cases larger than 

the annual average for the period 1900-1929. In others, however, a 

" net consumption " had been displaced by a " net withdrawal from 

circulation as the accompanying table shows. Thus, whereas British India's net consumption averaged almost 29,000,000 fine ounces 

per annum in the 30-year period, analysis of the 5-year period ended 

1931 shows an average return from circulation of 24,000,000 ounces 

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Federal Reserve Bank of St. Louis
8 MONETARY USE OF SILVER IN 19 3 3 8 

per annum, with the return in the depression year 1931 reaching 

almost 40,000,000 ounces. In the United States annual net consumption averaged close to 8,000,000 ounces from 1900 to 1929; from 1927 

to 1931 the average was only 1,640,000 ounces: and during both 1930 

and 1931 there were net withdrawals from circulation totaling 

4,600,000 ounces. 

The Soviet's consumption showed a small decline in the 5-year 

period 1927-31, while latterly—as stated elsewhere—the Government has been withdrawing silver coin for exportation. An unofficial estimate puts sales of demonetized silver by the Union, of Soviet 

Socialist Republics in 1932 at 11,600,000 fine ounces. Mexico's statistics show an average net withdrawal from circulation, amounting 

to 560,000 ounces in 1927-31. This average was slightly smaller than 

the net withdrawal in the year 1931 alone. Mexico's coinage activity 

of 1932 is, of course, not included in these figures. Germany's large 

net consumption for coinage during 1931 (18,000,000 ounces) made 

the 5-year average 8,340,000 ounces, compared with one of 4,530,000 

ounces during the 30 years ended 1929. Japan showed average net 

withdrawals of 180,000 fine ounces during the more recent period; 

the United Kingdom, 5,180,000 ounces; France, 4,460,000 ounces; and 

Italy, 1,120,000 ounces. It is noteworthy that in 1931 the United 

Kingdom showed a net consumption of 5,300,000 ounces and France 

7,800,000 ounces in contrast to withdrawals from circulation in the 

years immediately preceding. The most marked increase was in the 

case of Germany. In all other cases studied, 1931 does not compare 

favorably with 1927-31. 

A comparison of the 1927-31 figures with those for 1900-1929 

shows increases in the annual average net consumption in the cases 

of only three countries, Germany, Persia, and the Netherlands. A 

similar comparison of 1900-1929 with the year 1931 shows increased 

net consumption in only Germany, United Kingdom, and France. 

COMPARISON OF AVERAGE NET CONSUMPTION OF SILVER) FOR COINAGE, BY SELECTED 

COUNTRIES, DURING REGENT PERIODS AND DURING 193 1 

[In millions of fine ounces] 

Country 

Net consumption 

in coinage, 1900-

1929 

Average net consumption per annum 

Net consumption 

in 1931 

(subject 

to revision)

 1 

Country 

Net consumption 

in coinage, 1900-

1929 1900-1929 1927-31 1 

Net consumption 

in 1931 

(subject 

to revision)

 1 

British India . 863.4 

236.0 

151.7 

150.4 

135.9 

132.4 

28.78 

7. 87 

5. 06 

5. 01 

4. 53 

4.41 

3. 97 

4. 02 

2. 53 

1.54 

.84 

.61 

.50 

.48 

.24 

-23. 98 

1. 64 

4. 66 

-.5 6 

8.34 

-.1 8 

2. 76 

3. 68 

-5.18 

3. 42 

-4.4 6 

2.14 

.26 

-39.6 

United States of America . . . ___ -4. 4 

863.4 

236.0 

151.7 

150.4 

135.9 

132.4 

28.78 

7. 87 

5. 06 

5. 01 

4. 53 

4.41 

3. 97 

4. 02 

2. 53 

1.54 

.84 

.61 

.50 

.48 

.24 

-23. 98 

1. 64 

4. 66 

-.5 6 

8.34 

-.1 8 

2. 76 

3. 68 

-5.18 

3. 42 

-4.4 6 

2.14 

.26 

-39.6 

-4. 4 

Russia . -

863.4 

236.0 

151.7 

150.4 

135.9 

132.4 

28.78 

7. 87 

5. 06 

5. 01 

4. 53 

4.41 

3. 97 

4. 02 

2. 53 

1.54 

.84 

.61 

.50 

.48 

.24 

-23. 98 

1. 64 

4. 66 

-.5 6 

8.34 

-.1 8 

2. 76 

3. 68 

-5.18 

3. 42 

-4.4 6 

2.14 

.26 

-39.6 

-4. 4 

Mexico. __ __ 

863.4 

236.0 

151.7 

150.4 

135.9 

132.4 

28.78 

7. 87 

5. 06 

5. 01 

4. 53 

4.41 

3. 97 

4. 02 

2. 53 

1.54 

.84 

.61 

.50 

.48 

.24 

-23. 98 

1. 64 

4. 66 

-.5 6 

8.34 

-.1 8 

2. 76 

3. 68 

-5.18 

3. 42 

-4.4 6 

2.14 

.26 

- . 8 

Germany - - 18.0 

863.4 

236.0 

151.7 

150.4 

135.9 

132.4 

28.78 

7. 87 

5. 06 

5. 01 

4. 53 

4.41 

3. 97 

4. 02 

2. 53 

1.54 

.84 

.61 

.50 

.48 

.24 

-23. 98 

1. 64 

4. 66 

-.5 6 

8.34 

-.1 8 

2. 76 

3. 68 

-5.18 

3. 42 

-4.4 6 

2.14 

.26 

- . 8 

18.0 

Japan __ 

863.4 

236.0 

151.7 

150.4 

135.9 

132.4 

28.78 

7. 87 

5. 06 

5. 01 

4. 53 

4.41 

3. 97 

4. 02 

2. 53 

1.54 

.84 

.61 

.50 

.48 

.24 

-23. 98 

1. 64 

4. 66 

-.5 6 

8.34 

-.1 8 

2. 76 

3. 68 

-5.18 

3. 42 

-4.4 6 

2.14 

.26 

- . 8 

18.0 

French Indo-China 

Austria and Hungary 

United Kingdom 

Persia . _ -

! 119.0 

! 120.6 

1 75.9 

! 46.3 I 25.2 

| 18.4 i 15.0 

14.3 

! 7.1 

28.78 

7. 87 

5. 06 

5. 01 

4. 53 

4.41 

3. 97 

4. 02 

2. 53 

1.54 

.84 

.61 

.50 

.48 

.24 

-23. 98 

1. 64 

4. 66 

-.5 6 

8.34 

-.1 8 

2. 76 

3. 68 

-5.18 

3. 42 

-4.4 6 

2.14 

.26 

-3. 8 

.9 

5.3 

France 

Netherlands 

Australia . _ 

! 119.0 

! 120.6 

1 75.9 

! 46.3 I 25.2 

| 18.4 i 15.0 

14.3 

! 7.1 

28.78 

7. 87 

5. 06 

5. 01 

4. 53 

4.41 

3. 97 

4. 02 

2. 53 

1.54 

.84 

.61 

.50 

.48 

.24 

-23. 98 

1. 64 

4. 66 

-.5 6 

8.34 

-.1 8 

2. 76 

3. 68 

-5.18 

3. 42 

-4.4 6 

2.14 

.26 

7.8 

-5. 5 

Canada _ 

! 119.0 

! 120.6 

1 75.9 

! 46.3 I 25.2 

| 18.4 i 15.0 

14.3 

! 7.1 

28.78 

7. 87 

5. 06 

5. 01 

4. 53 

4.41 

3. 97 

4. 02 

2. 53 

1.54 

.84 

.61 

.50 

.48 

.24 

-23. 98 

1. 64 

4. 66 

-.5 6 

8.34 

-.1 8 

2. 76 

3. 68 

-5.18 

3. 42 

-4.4 6 

2.14 

.26 

Italy 

! 119.0 

! 120.6 

1 75.9 

! 46.3 I 25.2 

| 18.4 i 15.0 

14.3 

! 7.1 

28.78 

7. 87 

5. 06 

5. 01 

4. 53 

4.41 

3. 97 

4. 02 

2. 53 

1.54 

.84 

.61 

.50 

.48 

.24 -1.1 2 

Total 

! 119.0 

! 120.6 

1 75.9 

! 46.3 I 25.2 

| 18.4 i 15.0 

14.3 

! 7.1 

28.78 

7. 87 

5. 06 

5. 01 

4. 53 

4.41 

3. 97 

4. 02 

2. 53 

1.54 

.84 

.61 

.50 

.48 

.24 -1.1 2 

Total ; 2,111.6 70. 39 - 8 . 58 -22. 1 

i The minus sign indicates net withdrawal of coin from circulation. 

Source: 1900-1929, Y . S. Leong, Brookings Institution (table on p. 88 of Trade Promotion Series No. 

139, The Silver Market, by Herbert M. Bratter); 1927-31, from annual reports of the Director of the Mint. 

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Federal Reserve Bank of St. Louis
MONETARY USE OF SILVER IN 19 3 3 9 

The second table submitted herewith shows detailed figures on 

coinage of silver and withdrawal by the mints of 24 countries, as 

reported to the United States Bureau of the Mint. Also shown are 

the totals for the world, as reported to the mint. As the figures show, 

the country which consumed the largest amount of silver in coinage 

during the period 1927-31 was Germany, which took 41,700,000 

ounces in 1930. The other principal net consumers of silver for 

coinage purposes, in the order of amount consumed were Union of 

Soviet Socialist Republics, Persia, Austria, Fren,ch Indo-China, 

Netherlands, and Poland. Those countries in which the most silver 

returned from circulation in the period 1927 to 1931 were British 

India, United Kingdom, France, Netherland India, Italy, and 

Mexico. 

SILVER COINAGE BY SELECTED COUNTRIES FROM 192 7 TO 1931 , INCLUSIVE 

(In millions of fine ounces. A minus (—) sign indicates withdrawal from monetary use) 

Country and item 1927 1928 1929 1930 1931 i 5-year 

total 

5-year 

average 

Germany: 

Coinage _ 7.1 

.1 

7.0 

12.3 

2.7 

9.6 

6.3 

1.9 

4.4 

7.8 

4.2 

1.5 

2.7 

15.5 

18.3 

3 

7.1 

.1 

7.0 

12.3 

2.7 

9.6 

6.3 

1.9 

4.4 

7.8 

4.2 

1.5 

2.7 

15.5 

18.3 

3 

Net consumption in coinage 

Union of Soviet Socialist Republics: 

Coinage -

7.1 

.1 

7.0 

12.3 

2.7 

9.6 

6.3 

1.9 

4.4 

7.8 

4.2 

1.5 

2.7 

15.5 

18.0 41.7 8.34 

Withdrawn from circulation _ _ 

6.3 

1.9 

4.4 

7.8 

4.2 

1.5 

2.7 

15.5 

Net consumption in coinage 7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

15.5 

.9 

23.3 4.66 

Persia: 

Coinage.. 3.8 11.4 

3.7 

7.7 

5.5 

1.6 

3.9 

7.0 

.2 

6.8 

2.3 

1.1 

1.2 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

15.5 

.9 

23.3 4.66 

Withdrawn from circulation 

3.8 11.4 

3.7 

7.7 

5.5 

1.6 

3.9 

7.0 

.2 

6.8 

2.3 

1.1 

1.2 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

15.5 

.9 

Net consumption in coinage 3.8 

11.7 

4.5 

7.2 

7.4 

.7 

6.7 

.1 

.1 

11.4 

3.7 

7.7 

5.5 

1.6 

3.9 

7.0 

.2 

6.8 

2.3 

1.1 

1.2 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

.9 

1.9 

1.2 

.7 

1.0 

17.1 3. 42 

Austria: 

Coinage. 

3.8 

11.7 

4.5 

7.2 

7.4 

.7 

6.7 

.1 

.1 

11.4 

3.7 

7.7 

5.5 

1.6 

3.9 

7.0 

.2 

6.8 

2.3 

1.1 

1.2 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

.9 

1.9 

1.2 

.7 

1.0 

l.'l 

.2 

.9 

7.7 

11.5 

-3. 8 

10.7 

16.2 

-5. 5 

1.1 

.2 

.9 

.5 

4.9 

-4. 4 

1.7 

17.1 3. 42 

Withdrawn from circulation 

3.8 

11.7 

4.5 

7.2 

7.4 

.7 

6.7 

.1 

.1 

11.4 

3.7 

7.7 

5.5 

1.6 

3.9 

7.0 

.2 

6.8 

2.3 

1.1 

1.2 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

.9 

1.9 

1.2 

.7 

1.0 

l.'l 

.2 

.9 

7.7 

11.5 

-3. 8 

10.7 

16.2 

-5. 5 

1.1 

.2 

.9 

.5 

4.9 

-4. 4 

1.7 

Net consumption in coinage 

French Indo-China: 

Coinage 

3.8 

11.7 

4.5 

7.2 

7.4 

.7 

6.7 

.1 

.1 

11.4 

3.7 

7.7 

5.5 

1.6 

3.9 

7.0 

.2 

6.8 

2.3 

1.1 

1.2 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

.9 

1.9 

1.2 

.7 

1.0 

l.'l 

.2 

.9 

7.7 

11.5 

-3. 8 

10.7 

16.2 

-5. 5 

1.1 

.2 

.9 

.5 

4.9 

-4. 4 

1.7 

14.6 2. 92 

Withdrawn from circulation 

3.8 

11.7 

4.5 

7.2 

7.4 

.7 

6.7 

.1 

.1 

11.4 

3.7 

7.7 

5.5 

1.6 

3.9 

7.0 

.2 

6.8 

2.3 

1.1 

1.2 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

.9 

1.9 

1.2 

.7 

1.0 

l.'l 

.2 

.9 

7.7 

11.5 

-3. 8 

10.7 

16.2 

-5. 5 

1.1 

.2 

.9 

.5 

4.9 

-4. 4 

1.7 

Net consumption in coinage 

Netherlands: 

Coinage 

3.8 

11.7 

4.5 

7.2 

7.4 

.7 

6.7 

.1 

.1 

11.4 

3.7 

7.7 

5.5 

1.6 

3.9 

7.0 

.2 

6.8 

2.3 

1.1 

1.2 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

1.0 

13.8 

l.'l 

.2 

.9 

7.7 

11.5 

-3. 8 

10.7 

16.2 

-5. 5 

1.1 

.2 

.9 

.5 

4.9 

-4. 4 

1.7 

.13. 8 2. 76 

Withdrawn from circulation _ 

3.8 

11.7 

4.5 

7.2 

7.4 

.7 

6.7 

.1 

.1 

11.4 

3.7 

7.7 

5.5 

1.6 

3.9 

7.0 

.2 

6.8 

2.3 

1.1 

1.2 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

1.0 

13.8 

l.'l 

.2 

.9 

7.7 

11.5 

-3. 8 

10.7 

16.2 

-5. 5 

1.1 

.2 

.9 

.5 

4.9 

-4. 4 

1.7 

Net consumption in coinage - ___ 

Poland: 

Coinage 

3.8 

11.7 

4.5 

7.2 

7.4 

.7 

6.7 

.1 

.1 

11.4 

3.7 

7.7 

5.5 

1.6 

3.9 

7.0 

.2 

6.8 

2.3 

1.1 

1.2 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

13.8 

5.0 

.8 

4.2 

1.9 

2.1 

- . 2 

2.3 

l.'l 

.2 

.9 

7.7 

11.5 

-3. 8 

10.7 

16.2 

-5. 5 

1.1 

.2 

.9 

.5 

4.9 

-4. 4 

1.7 

10.7 2.14 

Withdrawn from circulation 1.2 

-1. 2 

6.4 

2.9 

3.5 

.4 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

13.8 

5.0 

.8 

4.2 

1.9 

2.1 

- . 2 

2.3 

l.'l 

.2 

.9 

7.7 

11.5 

-3. 8 

10.7 

16.2 

-5. 5 

1.1 

.2 

.9 

.5 

4.9 

-4. 4 

1.7 

Net consumption in coinage 

United States: 

Coinage . 8.3 

• 2.3 

6.0 

1.2 

-1. 2 

6.4 

2.9 

3.5 

.4 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

13.8 

5.0 

.8 

4.2 

1.9 

2.1 

- . 2 

2.3 

l.'l 

.2 

.9 

7.7 

11.5 

-3. 8 

10.7 

16.2 

-5. 5 

1.1 

.2 

.9 

.5 

4.9 

-4. 4 

1.7 

9.7 1.94 

Withdrawn from circulation 

8.3 

• 2.3 

6.0 

1.2 

-1. 2 

6.4 

2.9 

3.5 

.4 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

13.8 

5.0 

.8 

4.2 

1.9 

2.1 

- . 2 

2.3 

l.'l 

.2 

.9 

7.7 

11.5 

-3. 8 

10.7 

16.2 

-5. 5 

1.1 

.2 

.9 

.5 

4.9 

-4. 4 

1.7 

Net consumption in coinage 

Czechoslovakia: 

Coinage 

8.3 

• 2.3 

6.0 

1.2 

-1. 2 

6.4 

2.9 

3.5 

.4 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

13.8 

5.0 

.8 

4.2 

1.9 

2.1 

- . 2 

2.3 

l.'l 

.2 

.9 

7.7 

11.5 

-3. 8 

10.7 

16.2 

-5. 5 

1.1 

.2 

.9 

.5 

4.9 

-4. 4 

1.7 

8.2 1. 64 

Withdrawn from circulation 

1.2 

-1. 2 

6.4 

2.9 

3.5 

.4 

7.8 

10.1 

5.4 

4.7 

2.9 

1.0 

1.9 

3.3 

.2 

3.1 

11.0 

9.8 

1.2 

6.6 

.8 

5.8 

6.2 

2.9 

3.3 

1.4 

13.8 

5.0 

.8 

4.2 

1.9 

2.1 

- . 2 

2.3 

l.'l 

.2 

.9 

7.7 

11.5 

-3. 8 

10.7 

16.2 

-5. 5 

1.1 

.2 

.9 

.5 

4.9 

-4. 4 

1.7 

Net consumption in coinage 

Bulgaria: 

Coinage __ _ _ _ __ 

.4 1.4 2.3 

2.6 

1.7 

2.6 

5.8 1.16 

Withdrawn from circulation 

2.3 

2.6 

1.7 

2.6 

Net consumption in coinage. _ _ 2.6 

1.9 

.9 

1.0 

2.9 

2.6 5.2 1.04 

Hungary: 

Coinage 1.8 1.0 

2.6 

1.9 

.9 

1.0 

2.9 

2.6 5.2 1.04 

Withdrawn from circulation _ _ 

1.8 1.0 

2.6 

1.9 

.9 

1.0 

2.9 

Net consumption in coinage 1.8 1.0 

2.6 

1.9 

.9 

1.0 

2.9 

3.8 .76 

Greece: 

Coinage 

1.8 1.0 

2.6 

1.9 

.9 

1.0 

2.9 

3.8 .76 

Withdrawn from circulation 

2.6 

1.9 

.9 

1.0 

2.9 

Net consumption in coinage 2.9 2.9 .58 

French Morocco: 

Coinage 1.7 

2.9 2.9 .58 

Withdrawn from circulation 

1.7 

.1 

Net consumption in coinage 1.7 - . 1 

.1 

- . 1 1.6 .32 

1 Subject to revision. 

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Federal Reserve Bank of St. Louis
10 MONETARY USE OF SILVER IN 19 3 3 

SILVER COINAGE BY SELECTED COUNTRIES FROM 192 7 TO 1931 , INCLUSIVE—Contd. 

(In millions of fine ounces. A minus (—) sign indicates withdrawal from monetary use) 

Country and item 1927 1928 1929 1930 1931 5-year 

total 

5-year 

average 

Australia: 

Coinage. 

Withdrawn from circulation 

Net consumption in coinage 

Union of South Africa: 

Coinage 

Withdrawn from circulation 

Net consumption in coinage 

Switzerland: 

Coinage 

Withdrawn from circulation 

Net consumption in coinage 

Irish Free State: 

Coinage. 

Withdrawn from circulation 

Net consumption in coinage 

Japan: 

Coinage 

Withdrawn from circulation 

Net consumption in coinage -

Mexico: 

Coinage 

Withdrawn from circulation 

Net consumption in coinage 

Italy: 

Coinage 

Withdrawn from circulation 

Net consumption in coinage 

Netherland India: 

Coinage 

Withdrawn from circulation 

Net consumption in coinage 

France: 

Coinage 

Withdrawn from circulation 

Net consumption in coinage 

United Kingdom: 

Coinage * 

Withdrawn from circulation 

Net consumption in coinage 

British India: 

Coinage 

Withdrawn from circulation 

Net consumption in coinage 

Total, above countries: 

Coinage 

Withdrawn from circulation. 

Net consumption in coinage 

Total, all countries reported to the mint: 

Coinage 

Withdrawn from circulation 

Net consumption in coinage 

2.0 

.5 

1.5 

.5 

. 6 1 

1.0 

.5 

.5 

. 1 

- . 1 

2.2 2.1 

. 1 

19.0 

25.8 

-6. 8 

1.7 

.5 1.2 

4.4 

5.0 

- . 6 

.5 

1.9 

-1. 4 

5.4 

9.9 

-4. 5 

2.8 

10.0 

-7. 2 

- . 3 

67.0 

47.4 

19.6 

143.7 

54.9 

43.2 

-43.2 

9.0 

18.9 

14.2 

-13.4 

70.3 

109.0 

-38.7 

216.1 

113.1 

103.0 

1.6 

-1. 6 

1.6 

.8 

6.4 1.6 

4.8 

. 2 2 

1.5 1.2 

.3 

-. 1 

1. 

-1. 0 

. 1 

.1 

5.0 

.2 

3.6 

2.7 

(

2) 

7.6 

2 -7. 6 

8.1 

5.7 

7.3 

-1. 6 

7.8 

-8. 6 

5.0 

10.0 

19.3 

-9. 3 

1.0 

29.2 

-28. 2 

83.4 

76.2 

7.2 

185.4 

88.2 

97.2 

8.1 

2.3 

7.1 

-4. 8 

. 6 

39.0 

-38.4 

69.4 

65.0 

4.4 

179.9 

81.2 

98.7 

7.8 

5.3 

-22.3 

5.3 

2.1 

41.7 

-39.6 

84.5 

-18.2 

70.5 

89.5 

-19.0 

-25.9 

356.4 

382.1 

-25. 7 

795.6 

426.9 

368.7 

.10 

.04 

-.02 

-.1 8 

-1.12 

- 1 . 72 

-4.4 6 

73. 74 

2 For 1930, coinage for the Netherlands and Netherland India was reported in one figure. 

Source: Annual reports of the Director of the Mint. 

SILVER IN RESERVES OF CENTRAL BANKS 

Analysis of the percentage of silver in total metallic holdings in 

18 foreign banks of issue, by 5-year periods, shows a decline of approximately 17 percent between 1900-1904 and 1905-9; 26 percent 

during the next 5 years; and 42 percent during the World-War quinquennium. The following is based on statistics compiled by Y. S. 

Leong, of Washington, D.C. 

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Federal Reserve Bank of St. Louis
MONETARY USE OF SILVER IN 19 3 3 1 1 

SILVER IN THE METALLIC RESERVES OF 18 FOREIGN CENTRAL BANK S 

5-year period 

Percent 

of total 

metallic 

holdings 

(average)1 

Percentage 

change 

from preceding 

5-year 

period 

5-year period 

Percent 

of total 

metallic 

holdings 

(average)! 

Percentage 

change 

from preceding 

5-year 

period 

1900-1904._ 24.5 

20.4 

15.1 

1915-19 8.7 

9.1 

7.1 

-42.4 

+4.6 

-22. 0 

1905-09 

24.5 

20.4 

15.1 

-16.7 

-26. 0 

1920-24 _ _ 

8.7 

9.1 

7.1 

-42.4 

+4.6 

1910-14 -22. 0 

24.5 

20.4 

15.1 

-16.7 

-26. 0 1925-29 

8.7 

9.1 

7.1 

-42.4 

+4.6 

-22. 0 

24.5 

20.4 

15.1 

-16.7 

-26. 0 

8.7 

9.1 

7.1 

-42.4 

+4.6 

-22. 0 

1 For each 5-year period the proportion of silver in the holdings of each bank was averaged, and from such 

averages an 18-country average was computed. Detailed 5-year averages by countries, as compiled by 

Mr. Leong, were published in Senate Document No. 8, 73d Cong., 1st sess. 

During the 30 years covered by the above figures, details of which 

were published in an appendix to Trade Promotion Series No. 139, 

The Silver Market, the proportion of silver in total metallic holdings declined in all but 4 of the 18 countries. Those which showed 

a net increase were Denmark, Japan, Russia, and Switzerland, 

whose actual silver holdings were and still are relatively small. 

In all countries where silver coin actively circulates, the central 

banks have on hand some silver as till money. Usually, however, 

in gold standard countries the law governing the central banks' 

reserves makes no provision for silver, but there are certain exceptions. Central banks at present specifically authorized by law to 

include silver in their minimum metallic reserves against notes or 

demand liabilities in general include those of— 

Albania Japan Spain 

Bolivia Manchuria Union of South Africa 

China Netherland India Union of Soviet SocialColombia Netherlands ist Republics 

Guatemala Peru United Kingdom 

Hungary Poland 

In addition to the foregoing list, which applies to central banks, 

silver is included in the monetary reserves of the treasuries or banks 

of British India, Ceylon, Ethiopia, Goa, Hong Kong, Mexico, New 

Zealand, Pondicherry, Siam, Straits Settlements, and the United 

States. 

RECENT EXCHANGE RATES 

The par value of the monetary unit of each country is shown in 

the text of the bulletin, following the name of the country. Exchange rates for April 15, 1933, for the currencies of the more important commercial nations, are shown in the following table issued 

by the Federal Reserve Board. 

172120—33 2 

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Federal Reserve Bank of St. Louis
1 2 MONETARY USE OF SILVER IN 19 3 3 

NOON BUYIN G RATES FOR CABLE TRANSFERS IN NE W YORK CIT Y 

Country 

Austria 

Belgium 

Bulgaria 

Czechoslovakia 

Denmark. 

England 

Finland 

France 

Germany 

Greece _. 

Hungary 

Italy 

Netherlands 

Norway 

Poland ..., 

Portugal 

Rumania 

Spain 

Sweden 

Switzerland 

Yugoslavia 

NORTH AMERICA 

Canada. 

Cuba — 

MexicoValue in United States money 

Unit 

quoted 

Schilling.. 

Belga 

Lev 

Koruna... 

Krone 

Pound 

Markka... 

Franc.. 

Reichsmark. 

Drachma 

Pengo 

Lira 

Florin 

Krone 

Zloty 

Escudo 

Leu 

Peseta 

Krona 

Franc 

Dinar 

Dollar.. 

Peso... 

....do -

Mint 

par 

Cents 

14.07 

13.90 

.72 

2. 96 

26. 80 

486.66 

2. 52 

3.92 

23.82 

1.30 

17.49 

5.26 

40.20 

26. 80 

11.22 

4.42 .60 

19. 30 

26.80 

19. 30 

1. 76 

100.00 

100 00 

49. 85 

Rate 

quoted 

Cents 

i 14.0800 

14.1125 

i. 7150 

2.9833 

15. 5166 

348. 5000 

i 1.5400 

4. 0305 

23.9640 

.5816 

i 17. 4500 

5.1762 

41. 0166 

17. 7920 

i 11. 2000 

i 3.1400 

i. 6012 

8. 7216 

18. 4260 

19. 7866 

i 1. 3820 

83. 7767 

99.9333 

(

2

) 

Country 

SOUTH AMERICA 

Argentina.. 

Brazil 

Chile 

Colombia.. 

Uruguay... 

ASIA 

Hong Kong 

China (Shanghai) 

India 

Japan 

OTHER COUNTRIES 

Australia 

New Zealand. 

Singapore 

South Africa 

Value in United States money 

Unit 

quoted 

Gold peso 

Milreis 

Peso 

do 

do 

DollarYuan.. 

Rupee _ 

Yen... . 

Pound. 

d o -

Dollar.. 

Pound. 

Mint 

par 

Cents 

96.48 

11.96 

12.17 

97. 33 

103. 42 

3 33. 42 

3 21. 71 

36. 50 

49. 85 

486. 66 

486.66 

< 40. 66 

486. 66 

1 Nominal. 

2 No quotation. 

3 Silver content of unit multiplied by New York price of silver on April 15, 1933, which was 28% cents 

per fine ounce. 

i

 Legally equivalent to 7/60 of 1 English pound. Parity represents 7/60 of quotation of pound in New York 

on April 15, 1933. 

PAPER-CURRENCY STATISTICS 

Students of the monetary use of silver may find of interest the 

following statistics, showing the outstanding note issue of the principal banks of issue as of the end of 1932. The figures, which 

represent local currency in millions, are taken from the Federal 

Eeserve Bulletin for March 1933. The figures do not include notes 

issued by governments. 

Country Issuing bank Note 

issue 

Albania 

Australia 

Austria 

Belgium 

Bolivia 

Brazil 

Bulgaria 

Canada 

Chile. 

China... 

Colombia 

Czechoslovakia 

Denmark 

Danzig, Free City of 

Ecuador 

Egypt 

Estonia 

Finland 

1 End of November 1932. 

National Bank of Albania 

Commonwealth Bank of Australia 

Austrian National Bank 

National Bank of Belgium 

Central Bank of Bolivia 

Bank of Brazil 

National Bank of Bulgaria 

The commercial banks 

Central Bank of Chile 

Central Bank of China 

Bank of the Republic of Colombia. 

National Bank of Czechoslovakia.. 

Danish National Bank 

Bank of Danzig 

Central Bank of Ecuador 

National Bank of Egypt 

Bank of Estonia 

Bank of Finland 

Franc 13.1 

Pound 46.2 

Schilling 914.0 

Belga 3,627.0 

Boliviano i 36.1 

Milreis 170.0 

Lev __ 2,635.0 

Dollar 115.0 

Peso 488.0 

Yuan i 35.2 

Peso 22.5 

Koruna 6, 267.0 

Krone 332.0 

Gulden 36.5 

Sucre 24.0 

Pound i 19.0 

Kroon 31.2 

Markka . 1, 085. 0 

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Federal Reserve Bank of St. Louis
MONETARY USE OF SILVER IN 19 3 3 13 

Country Issuing bank Unit 

France 

Germany 

Greece 

Hungary 

Italy .. . 

Japan 

Latvia 

Lithuania 

Netherland India 

Netherlands _. 

Norway 

Peru 

Poland 

Portugal 

Rumania 

Spain 

Sweden 

Switzerland 

Turkey 

Union of South Africa 

United Kingdom 

United States 

Uruguay 

Yugoslavia 

Bank of France 

Reichsbank 

Bank of Greece 

National Bank of Hungary 

Bank of Italy 

Bank of Japan 

Bank of Latvia 

Bank of Lithuania 

Bank of Java . _ 

Netherlands Bank 

Bank of Norway 

Central Bank of Peru 

Bank of Poland 

Bank of Portugal 

National Bank of Rumania 

Bank of Spain.. 

Bank of Sweden 

Swiss National Bank 

Central Bank of the Republic of Turkey 

South African Reserve Bank 

Bank of England 

("Federal Reserve System 

\ National banks 

Bank of the Republic of Uruguay.. 

National Bank of the Kingdom of Yugoslavia... 

Franc 

Reichsmark. 

Drachma 

Pengo 

Lira 

Yen 

Lat 

Litas 

Florin 

do 

Krone 

Sol 

Zloty 

Escudo 

Leu.. 

Peseta 

Krona 

Franc 

Pound 

do 

do 

Dollar 

do 

Peso. 

Dinar. 

2 Federal Reserve notes and Federal Reserve bank notes. At the end of March 1933 the corresponding 

amount was $3,638,300,000. 

3 National bank notes in circulation on March 31 totaled $878,808,000. 

GOLD RESERVES OF WORLD 

For purposes of comparison there is given herewith a statement 

of the gold reserves of central banks and governments, as given in the 

Federal Keserve Bulletin for March 1933. The figures apply to the 

end of January 1933, and are in millions of dollars. 

Country 

United States 

Canada 

Europe: 

Austria 

Belgium 

Bulgaria 

Czechoslovakia 

Denmark 

England 

France 

Germany 

Greece. 

Hungary 

Italy.... 

NetherlandsNorway 

Poland 

Portugal 

Rumania 

Spain 

Sweden 

Switzerland 

Union of Soviet Socialist 

Republics 

Yugoslavia 

6 other countries 

Total, Europe 

End of 

January 

1933 

4,074 

84 

21 

362 

11 

51 

36 

602 

3, 221 

196 

7 

17 

308 

413 

39 

57 

i 25 

57 

436 

55 

477 

31 

i 29 

i 6,818 

End of 

March 

1933 

3, 916 

81 

21 

371 

11 

51 

36 

836 

3,152 

176 

9 

17 

331 

381 

40 

55 

30 

58 

436 

368 

31 

1 31 

Country 

Latin America: 

Argentina 

Chile 

Colombia 

Peru 

Uruguay 

5 other countriesTotal, Latin America... 

Asia and Oceania: 

Australia 

India 

Japan 

Java 

New Zealand. 

Siam 

Turkey 

Total, Asia and Oceania 

Africa: 

Algeria 

Egypt 

South Africa 

Total, Africa 

Grand total, 49 countries 

End of 

January 

1933 

249 

10 

12 

i 11 

42 

162 

212 

42 

25 

30 

10 

523 

33 

79 

i 11,925 

1 Preliminary. 2 August 1932. 

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Federal Reserve Bank of St. Louis
14 MONETARY USE OF SILVER IN 19 3 3 

LEADING SILVER-PRODUCING COUNTRIES 

As having a possible bearing on the attitude of various countries 

toward silver, there is given herewith a list of the leading producing 

countries, with the amount of their estimated mine production in 

millions of fine ounces (troy) in 1932. These countries produced 

80.6 percent of the world total. 

Mexico 69. 3 

United States 24. 8 

Canada 16. 5 

Australia 6. 5 

Peru 6. 3 

British India (Burma) 6.0 

Total, 6 countries 12,9. 4 

Total, world 160.6 

Source : American Bureau of Metal Statistics; world total as estimated by Handy and 

Harman. 

COINAGE IN COLONIES, MANDATED AREAS, AND SPHERES OF 

INFLUENCE 

In connection with the detailed information which follows, it 

should be borne in mind that changes affecting the coinage of the 

United Kingdom will affect those countries using British coins. 

(See British Empire.) Similarly, the recent issuance of silver coins 

in France, in accordance with the 1928 law, implies the circulation of 

silver in all French colonies using the French coinage system— 

although they did not have silver in circulation when this investigation was made. (See French colonies.) Changes in the United 

States coins are reflected in the circulation not only of those territories and possessions under our control,6 but also of foreign countries like Cuba, Panama, British Honduras, and Honduras, where 

American money customarily circulates along with the local currency. A similar statement may be made concerning the coinage 

of Portugal, which circulates in Angola, the Azores, Goa, Madeira, 

Mozambique, and Portuguese Guinea ; that of Italy, which circulates 

in Eritrea, Italian Somaliland, Libya, San Marino, and Vatican 

City; that of Japan which circulates in Chosen, Taiwan, Kwantung 

Leased Territory, the South Manchuria Railway Zone, and the mandated islands of the Pacific; and that of the Netherlands, Belgium, 

Spain, Denmark, Australia, New Zealand, etc., in the colonies or 

mandated areas pertaining to them. 

CONVERSION EQUIVALENTS 

The troy pound is divided into 12 ounces, each of 20 pennyweights 

(dwts.). One pennyweight equals 24 grains. Thus: 

1 dwt. = 24 grains. 

20 dwts.= 480 grains=1 ounce (troy). 

240 dwts. =5,760 grains= 12 ounces (troy)=l pound (troy). 

The following equivalents will be found useful in making conversions from troy to avoirdupois: 

1 gram =15.432 grains =0.03215 ounce troy=0.03527 ounce 

avoirdupois. 

1 grain =0.0648 gram. 

1 ounce troy =31.104 grams. 

1 ounce avoirdupois =28.35 grams. 

1 kilogram —2 pounds 8 ounces 3 pennyweights troy=15,432 

grains. 

1 pound avoirdupois =14.5833 ounces troy. 

6 See footnote 19 on p. 126. 

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SURVEY BY COUNTRIES 

ADEN AND PROTECTORATE 

The monetary unit is the British Indian rupee, divided into 

16 annas. The rupee has a par value of approximately $0,365. 

In Aden the rupee is unlimited legal tender. 

Apart from British Indian currency, in the territory surrounding 

Aden, the Maria Theresa dollar is still widely used, both this coin and 

the rupee being legal tender in all transactions. 

AFGHANISTAN 

The official unit of currency in Afghanistan is the silver 

afghani, commonly known as the Afghan rupee. The afghani is 

divided into 100 pul. The Afghan rupee has no fixed par value in 

terms of gold. 

Present legal provisions-—The official decree establishing the currency in Afghanistan was issued in 1925. 

According to American Consul Renwick S. McNiece, of Karachi, 

September 11, 1930, " it has been impossible to obtain a copy of the 

law relating to legal tender in Afghanistan. An informant, who 

is in a position to know, states that the Afghan Government will 

accept for taxes and customs duties only its own coins, i.e., amani 

(gold), afghani (silver), and kabuli (silver). The latter is a coin 

of old standing, 11 kabuli being equivalent to 10 afghani. Other 

currency circulates freely in the country, and there are always 

native exchange dealers (sarafan) who have shops in the compound 

of the customs house (gumruk) at Kabul who will provide legal 

tender in exchange for other forms of money * * *. 

" There are no laws prohibiting the importation of silver or 

gold or foreign currency of any kind. Exportation of gold and silver 

in all forms is strictly prohibited and, if detected, results in the 

confiscation of the intended export." 

The Afghan currency system includes, in addition to the coins 

mentioned, silver half afghanis (called nim afghani) and 20-pul 

silver pieces. 

Both the gold amani and the silver afghani are 0.900 fine. The 

nim afghani is 0.500 fine. The silver content of the afghani is 

believed to be about 140.625 grains (troy). 

Possibility of increased me of silver without new legislation.— 

More silver currency could be issued with little formality. 

Attitude toward silver.—Consul McNiece reported in 1930 that 

" when the afghani was first issued it was the intention gradually 

to do away with the kabuli. This is still the intention of the Government, but apparently no date has yet been set for withdrawing 

the kabuli rupee from circulation." 

Present employment of silver.—Foreign coins and notes circulate 

freely. Old silver coins, known as gajrees, circulate freely in Afghanistan, as in Persia. Coins circulate on the basis of their value as 

15 

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16 MONETARY USE OF SILVER IN 19 3 3 

bullion. While the foreign coins mentioned above have wide use, 

it is not possible to indicate the extent of their circulation in a 

country where there are no statistics of monetary stocks. 

Silver kabuli currency circulates in denominations of 5 kabuli, 

2% kabuli, 1 kabuli, y2 kabuli (called nim kabuli), and 20-paisa (also 

called 1 thanga or 1 abbasi). There are 60 paisa in 1 kabuli. 

ALBANIA 

The monetary unit is the Albanian franc, divided into 5 leks. 

The franc has a par value of approximately $0.1930. 

Present legal provisions.—The currency law of July 1925 provides 

for silver coins in denominations of 1, 2, and 5 francs, but these 

coins are not now in circulation, although silver coins were minted 

for Albania by the Italian mint in 1926. Silver coins (crowns) 

issued by nearby countries before the World War are still to be 

found in Albania, where they circulate at their bullion value, more 

or less. 

Details as specified in the 1925 law are shown in the following 

table:7 

Denomination Fineness 

Gross 

weight 

in gram? 

Legal 

tender 

limit 

5 francs _. . 0.900 

.835 

.835 

.835 

25.0 

10.0 

5.0 

2.5 

Francs 

50 

50 

50 

50 

2francs 

0.900 

.835 

.835 

.835 

25.0 

10.0 

5.0 

2.5 

Francs 

50 

50 

50 

50 

1 franc l_. 

0.900 

.835 

.835 

.835 

25.0 

10.0 

5.0 

2.5 

Francs 

50 

50 

50 

H 50 franc 1 

0.900 

.835 

.835 

.835 

25.0 

10.0 

5.0 

2.5 

Francs 

50 

50 

50 

50 

0.900 

.835 

.835 

.835 

25.0 

10.0 

5.0 

2.5 

Francs 

50 

50 

50 

50 

1 It is believed this coin was not struck in 1926. 

Albania's note-issue reserve, which must be at least 33*73 percent, 

may include silver.8 The balance sheet of the National Bank of 

Albania for the last report date in November 1932 showed gold 

amounting to 5,508,000 francs, foreign exchange totaling 29,891,000 

francs, and a note circulation of 12,272,000 francs. No silver was 

reported. 

A law of January 1922 prohibited the exportation of silver coin 

or bullion. 

Possibility of increased use of silver without new legislation.— 

The National .Bank of Albania is entrusted with management of 

the currency, and could issue silver without new legislation. 

Attitude toward silver.—There has been no intimation of legislation which would affect the monetary use of silver in Albania. 

Present employment of silver.—Silver coin in circulation at the 

end of 1931 totaled 8,579' francs and, in the central bank, 250,187 

francs. 

ALGERIA 

The monetary unit is the Algerian franc, divided into 100 centimes. The franc has a par value of approximately $0.0392. 

Present legal provisions.—The Bank of Algeria is the medium 

through which the paper and metal currency is issued, according 

7 Monetary Units and Coinage Systems of the Principal Countries of the World, 1929, 

p. 20. 

8 Federal Reserve Bulletin, July 1932, p. 437. 

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to a 1930 report, which stated that the coinage was regarded as 

temporary, being inscribed " Chambers de Commerce de France 

The law makes silver coins legal tender to 250 francs, but none 

are now in circulation. 

There is no general restriction on the movement of silver, other 

than the statutory customs duty.9 

Attitude toward silver.—When France issues silver coins, they 

will probably circulate in Algeria. It has been reported that the 

natives would incline to hoard them. 

Present employment of silver.—No silver is now in circulation 

in Algeria. Prohibited from circulation are (since 1894) Italian 

fractional silver coins; (since 1903) silver coins not current in the 

country of issue; and (since 1909) Greek silver coins. At the end 

of 1931 the Bank of Algeria held silver totaling 53,000,000 francs. 

ANGLO-EGYPTIAN SUDAN 

The monetary unit is the Egyptian pound, divided into 100 piasters. The Egyptian pound at par equals approximately $4.9431. 

The currency is at present pegged to the pound sterling at the 

ratio of approximately £E97% equals £100 sterling. 

Present legal provisions.—Except that British and Australian 

shillings and florins of the King George V issue are accepted at 5 

piasters and 10 piasters, respectively, the general provisions of the 

existing currency laws in the Sudan are in the main similar to 

those in force in Egypt. The legal tender of silver is limited to 200 

piasters. 

A proclamation published on June 15, 1923, removed the embargoes on gold and silver exports. 

Possibility of increased use of silver without new legislation.— 

The present use of silver for monetary purposes cannot be extended 

in the Sudan without legislation. 

Attitude toward silver.—No legislation in this connection is at 

present contemplated. 

Present employment of silver.—For hoarding purposes silver is 

preferred to bank notes, owing to the clanger of the latter being 

destroyed by white ants or fire. However, it is thought that there 

is not much hoarded silver in the country at the present time. 

At the end of 1931 silver in the Sudan was estimated as follows: 

In Government treasuries, £E845,393; in the banks, £E7,745; and in 

circulation, £E921,215. 

ANGOLA 

The monetary unit is the angolar, divided into 20 macutas. The 

angolar has a par value of approximately $0.0442 . 

The currency is issued by the Junta da Moeda da Angola (Council 

of the Coinage of Angola). Coins and notes of 1 angolar and 

higher denominations are unlimited legal tender; smaller currency is 

legal tender to 20 times its face value. 

The exportation of Angola coins is prohibited. 

9 In 1930 this was reported by Consul Oscar S. Heizer as equivalent to $0.10 United 

States currency per 220 pounds gross weight for silver bullion and $0.0665 per 220 pounds 

for coin. 

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18 MONETARY USE OF SILVER IN 19 3 3 

ARGENTINA 

The monetary unit is the gold peso, divided into 100 centavos. 

At par 1 gold peso equals approximately $0.9647. The Argentine 

gold peso and paper peso are linked at this ratio: 1 gold peso 

equals 2.27 paper pesos, thus giving the paper peso a par value of 

approximately $0.4244. The subsidiary coins represent fractions 

of the paper peso, which, like the gold peso, consists of 100 centavos. 

Present legal provisions.—There are no general provisions in 

Argentine law for the use of silver as currency, and no silver is in 

circulation. (The currency in actual circulation consists of paperpeso bills and nickel coins of 20, 10, and 5 centavos. Cooper 

2-centavo coins are in limited circulation, being used chiefly for 

making change at the post and telegraph offices.) 

Possibility of increased use of silver without new legislation.—It 

is believed that silver coins could be issued by the authorities without 

amendment of the existing laws by executive decree. 

Attitude toward silver.—Argentina does not produce over 15,000 

ounces of silver per annum, and there is, therefore, little likelihood 

that a sentiment in favor of silver per se will develop. The public 

has shown no particular objection to the use of silver coins, but there 

is certainly no public demand for them. 

That silver may be issued is indicated by Dr. Alejandro E. Bunge, 

a leading Argentine economist, in a statement of December 31, 1932, 

entitled " Second Memorandum on the Exchange Problem in Argentina." Dr. Bunge states: " It seems that unanimous approval has 

been won for a scheme to coin small silver currency of 50 centavos, 

and 1- and 2-peso values, up to a proportion between 15 and 20 percent (as in the United States and England) of the circulation. This 

would allow the retirement of 200,000,000 pesos in notes (all the 

"peso" issue and a portion of other denominations). The drop in 

the price of silver at this time is extraordinary to the extent that it 

reaches only one fifth of the nominal value represented by the coin 

itself (said coins have reached value at certain times higher than 

their nominal value). The high cost of reprinting the notes would 

be reduced, particularly on the 1-peso notes, the printing of which 

is considered to be extremely high. The gold guaranty remaining 

after paying the cost of the silver and the coining would reinforce 

the gold guaranty on the remaining balance of paper currency. 

Since this remainder would amount to some 30,000,000 pesos gold, 

the present ratio of 44 percent of the gold guaranty would be increased to 51 percent." 

Sir Otto Niemeyer's report on the rehabilitation of Argentine 

finances, made public in April 1933, recommended that coin be substituted for paper currency of denominations smaller than 5 pesos. 

AUSTRALIA 

The monetary unit is the Australian pound, divided into 20 

shillings of 12 pence each. The pound has a par value of approximately $4.8666. At present it is on the sterling exchange 

basis at the ratio of approximately £125 Australian to £100 sterling. 

Present legal provisions.—Silver currency is regulated by the 

Coinage Act (No. 6) of 1909, an act relating to currency, coinage, and 

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legal tender. The act, insofar as it affects silver money, makes the 

following provisions: 

Issuance of silver coins is controlled by the treasury. 

Silver coins are legal tender for a payment of no more than 40 shillings. 

The Governor General may determine the dimensions, denominations, and 

least current weight of Australian coins: may direct that any coins, other than 

silver or bronze, shall be current and be a legal tender for the payment of any 

amount not exceeding the amount specified in the proclamation and not exceeding 5 shillings; and may revoke or alter any proclamation previously made. 

The act is accompanied by a schedule of standard and least current 

weights of Australian coins, as also details of fineness and remedy 

allowance. It fixes the fineness of the silver coinage at 0.925. Following are the approximate gross weights of the Australian coins in 

grams: Florin, 11.3104; shilling, 5.6552; sixpence, 2.8275; threepence, 1.4138. 

Possibility of increased use of silver without new legislation.— 

From the text of the law there appears to be no restriction on the 

amount of silver coins which may be put into circulation. 

Attitude toward silver.—No legislation affecting the monetary use 

of silver has been proposed and, so far as is known, none is contemplated. Australia's coinage system being patterned after Great 

Britain's, it does not seem likely that Australia would alter the monetary use of silver unless to make it conform with that in Great 

Britain. It will be recalled that, unlike Australia's silver coinage, 

Great Britain's is now only 0.500 fine. 

Present employment of silver.—Coinage of Australian silver currency in the year ended June 30, 1928, amounted to £305,000. In the 

four succeeding years the figures were: £128,000, £61,000, £237,000, 

and £289,000. These figures are gross, making no allowance for withdrawals from circulation of British silver coins or for replacement 

of worn Australian coins. The Australian mints commenced to coin 

silver in 1910, the total amount issued by the treasury from the beginning of operations to June 30, 1932, being £7,427,000. Worn Australian coins withdrawn from circulation from 1910 to December 31, 

1930, amounted to £3,126,000, while British silver withdrawn to June 

30,1932, totaled £1,816,000. Since 1930, when the rate for remittances 

on London went to a substantial premium, appreciable amounts of 

British silver have been exported privately so that practically no 

British silver is now in circulation. 

A press report from Wellington on April 19 stated that New 

Zealand banks had received notice from London that the Bank of 

England would no longer accept at par British silver coins shipped 

from New Zealand or Australia. 

At the end of 1929 the stock of silver coin and bullion held by 

banks in Australia totaled £2,402,527. 

AUSTRIA 

The monetary unit is the schilling, consisting of 100 groschen. 

One shilling at par equals approximately $0.1407. 

Present legal provisions.—The main provision relating to the monetary use of silver in Austria is contained in article 86 of the statutes 

of the Austrian National Bank. That article reads in part as follows: 

The entire note circulation, including call liabilities, insofar as it exceeds 

the amount of Government loans, A, B, and C, must be fully covered by the 

following assets. 

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The first four categories of assets do not refer to metal cover. The 

fifth category is the following: 

By coins of the Republic of Austria in possession of the Austrian National 

Bank; silver coins may, at the discretion of the bank, also be accounted with 

their silver value [that is, at their market value as bullion] as a part of the 

bank's Barschatz [holdings of precious metals and foreign! exchange]. 

The minting of silver coins is controlled by the Austrian Treasury, but their issuance, as appears below, depends on the central 

bank. 

The law of December 20, 1924, authorized the issuance of 4 silver 

coins, 1 for export only. The 3 coins issued for use in Austria 

are the 2-, 1-, and ^-schilling pieces, 0.640 fine and having gross 

weights of 12, 6, and 3 grams, respectively. The fourth coin authorized is the Maria Theresa dollar, weighing 28.0668 grams, 0.833^ 

fine. The first 3 coins are legal tender in payments not exceeding 

50 schillings. 

Possibility of increased use of silver ivitkout new legislation.—The 

Austrian National Bank has not taken advantage of the provision 

which places no limit on the use of silver in the currency reserves. 

Attitude toward silver.—No legislation which would affect the 

monetary use of silver is contemplated. Silver coins can be put into 

circulation only by the Austrian National Bank, which has indicated 

no intention to put any considerable amount of silver into circulation 

in the near future. This disinterest in silver is confirmed by 

Austrian financial experts writing in Viennese newspapers. 

Present employment of silver.—The total circulation of silver coins 

in Austria on October 31, 1932, amounted to 83,161,590 schillings, 

of which 2,806,773 schillings were in possession of the National Bank. 

The National Bank holds no silver bullion and only a very small 

amount of Maria Theresa silver trade dollars, which are used in 

various parts of Africa and Near Eastern Asia. 

The circulation of silver mentioned above compares with the 

Austrian National Bank's note circulation of 903,000,000 schillings. 

AZORES 

The monetary unit is the escudo, divided into 100 centimos. 

The par value of the escudo is approximately $0.0442. (See 

Portugal.) 

BAHAMAS 

The monetary unit is the pound, divided into 20 shillings of 12 

pence each. The pound has a par value of approximately $4.8666. 

Present legal provisions.—Under the British Currency Act of 

November 29, 1883, the British monetary system applies to the 

Bahamas. 

Possibility of increased use of silver ivithout new legislation.— 

The volume of silver in circulation depends simply on the demands 

of business. 

Attitude toward silver.—No change in the present use of silver 

is likely. 

Present employment of silver.—United States silver coins and 

other forms of United States currency circulate generally, although 

not legal tender. 

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Silver coins struck in London for the Bahamas include 1-, 2-, and 

2y2-shilling pieces. 

BARBADOS 

The monetary unit is the pound, divided into 20 shillings of 12 

pence each. The pound has a par value of approximately $4.8666.10 

Present legal provisions.—British currency has always been used 

in Barbados. Exportation of British silver, except by the Colonial 

Treasurer, is prohibited under the Trade Act of 1910. 

Possibility of increased use of silver without new legislation.— 

The volume of silver in circulation depends simply on the demands 

of business. 

Attitude toward silver.—No change in the present use of silver 

is likely. 

Present employment of silver.—About £150,000 in British silver 

was estimated to be in circulation in 1930, according to a consular 

report. Replies to questionnaires sent out by the United States 

Bureau of the Mint indicated that silver in Barbados at the end of 

1930 totaled (face value) $507,000 United States currency. 

BELGIAN CONGO 

The monetary unit is the Congo franc, divided into 100 centimes. 

The franc has a par value of approximately $0.0278. 

Present legal provisions.—No provision for silver is made in the 

currency law. 

Attitude toward silver.—No intention to issue silver coinage has 

been reported. 

Present employment of silver.—No silver circulates in the Belgian 

Congo. 

BELGIUM 

The monetary unit is the Belgian franc, divided into 100 centimes. 

The franc, being one fifth of a belga, has a par value of approximately $0.0278. 

Present legal provisions.—The monetary law makes no specific provision for silver, and no coins of that metal are in circulation. The 

subsidiary coinage of Belgium is governed by the royal decree of 

October 26, 1926, "Arrete Royal Relatif a PEmission, par l'Etat, de 

Monnaies Divisionnaires Destinees a Remplacer les Petites Coupures 

Mises en circulation par la Banque National de Belgique." This 

decree was published in the Moniteur Beige of October 28, 1926. 

There is nothing in the decree which prevents the issuance of silver 

coins, the matter being left to the decision of the Ministry of Finance. 

Possibility of increased use of silver without new legislation.— 

Despite the foregoing, there is no likelihood that silver coins will 

be minted in the near future. 

Attitude toward silver.—The present nickel, copper, and nickelcopper coins in circulation appear to be satisfactory, and to substitute 

silver would be considered by many wasteful. It is worth noting, 

however, that certain individuals in Belgium have been advocating 

10 A unit of account, the British West Indies dollar, equivalent to 4s. 2d. sterling is in 

use, but it is not coined. 

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2 2 MONETARY USE OF SILVER IN 19 3 3 

the replacement of the 50-franc banknotes with silver coins. At 

present this project has not developed sufficient strength to indicate 

its adoption. On November 15, 1932, there were 572,000,000 francs 

in 50-franc notes in circulation. 

Present employment of silver.—By a decree of July 30, 1932, published in the Moniteur Beige of August 4, the Belgian 5-franc, 

2-franc, 1-franc, and 50-centime silver coins were demonetized as of 

August 1, 1932. Actually, these coins have not been in circulation 

since the war, as they were at that time hoarded for their value as 

bullion and, later, gradually bought up by the treasury. 

Neither the Belgian Government nor the National Bank of Belgium 

holds any silver, the last remaining stocks having been sold about 

3 years ago. 

BERMUDA 

The monetary unit is the pound, divided into 20 shillings of 12 

pence each. The pound has a par value of approximately $4.8666. 

Present legal provisions.—Since January 1, 1842, when the Act of 

June 22, 1841, became effective, the British currency system has 

applied in Bermuda. Movements of silver are not restricted. 

Possibility of increased use of silver without new legislation.— 

The volume of silver in circulation depends simply on the demands 

of business. 

Attitude toward silver.—No change in the present use of silver is 

likely. 

Present employment of silver.—American money circulates freely. 

BOLIVIA 

The monetary unit is the boliviano, divided into 100 centavos. 

The boliviano has a par value of approximately $0.3650. 

Present legal provisions.—The currency is governed by the monetary reform law of July 11, 1928, put into effect by decree of May 2, 

192*9,11 and by the law of December 7, 1929. Under the 1928 law,'old 

and new silver coins were made legal tender in payments not exceeding 10 bolivianos, and unlimited legal tender in payments to the 

Government. The law lists the new silver pieces shown in the 

following statement: 

1 boliviano; 0.800 fine; gross weight, 15.0 grams. 

% boliviano; 0.800 fine; gross weight, 7.5 grams. 

y5 boliviano; 0.800 fine; gross weight, 3.0 grams. 

By the law of December 7, 1929, the Government renounced, for 

a period of 40 years, the right to issue silver coins in favor of the 

central bank. Under this law the need for small money will be 

supplied by the bank which will issue not over 7,000,000 bolivianos 

of 1-boliviano notes, secured by a 50 percent reserve in gold. 

The statutes of the Central Bank of Bolivia, which call for a 

50 percent gold and gold-exchange reserve against demand liabilities, permit the inclusion of silver to the extent of one fifth.12 

Article 17 of the 1928 law provides that the Government, through 

the Minister of Finance, shall meet without delay the demands of 

11 The text of the law appears in the Annual Report of tne Director of the United 

States Mint for 1929, pp. 136-137. 

12 Federal Reserve Bulletin, July 1932, p. 437. 

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MONETARY USE OF SILVER IN" 19 3 3 23 

the central bank for the issuance of silver and minor coins against 

the delivery at La Paz of legal gold coins and notes of the bank 

convertible at par. Article 18 provides that the law enter into 

force on the day of its promulgation, insofar as it refers to the 

coinage of silver. 

By the law of January 7, 1924, an export tax is charged on silver 

ore graded according to its value in London; 0.40 boliviano for each 

kilogram of fine silver when the London quotation for silver does 

not exceed 20 pence per standard ounce troy. The tax increases with 

higher values. Importation of silver in ore or bullion is free of 

duty. 

By laws of 1904 and 1905 exportation of silver money is free, but 

importation is forbidden. Silverware exports are charged a duty 

of 8 bolivianos per kilo, but articles of artistic or historical interest 

may not be exported. Various surcharges are added to duties. 

Possibility of increased use of silver without new legislation.— 

The 1928 law apparently indicates no limit to the amount of subsidiary silver which may be issued. From the fact that in 1931 and 

1932 several bills calling for silver coinage ^ e r e introduced, it would 

seem to follow that new coinage is dependent upon special 

legislation. 

Attitude toward silver.—The above-mentioned bills were not approved. Apparently the main interest in coinage centered in copper, 

rather than silver, pieces. It is said that in Bolivia, where the currency has depreciated, the tendency is to use paper or baser metals, 

rather than silver. 

Present employment of silver.—Until the war, silver circulated in 

denominations of 1 boliviano and 50, 20, and 10 centavos, but today 

only a few of these—the 50- and 20-centavo pieces minted in 1908— 

are encountered. These two pieces weigh 10 and 4 grams, respectively, and are 10/12 fine. Under the 1908 law there were struck, in 

1909, 700,000 bolivianos of 50-centavo pieces and 300,000 bolivianos 

of 20-centavo coins. 

At the end of 1932 the Central Bank of Bolivia held 174,000 bolivianos in Bolivian silver coin. Other banks held about 6,400 

bolivianos. 

The Indians, forming well over half the population of the country, 

undoubtedly hoard a considerable amount of silver, and show some 

preference for silver coins over paper or nickel money. Their hoards 

are believed to be more of the rare old coins than of the 1909 minting. A very large proportion of the silver coins are perforated, 

having been used in necklaces or tied together for hoarding. 

BRAZIL 

The monetary unit is the milreis, divided into 1,000 reis. The 

milreis has a par value of approximately $0.1196. 

Present legal provisions.—According to a law (no. 4182) of November 13, 1920, silver may apparently be coined in any amount, 

provided that an equal amount of paper money be retired. At the 

same time, it is reported from Brazil, coinage of silver is limited 

by the law of December 31, 1912, to 15 percent of the paper currency 

circulation. 

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24 MONETARY USE OF SILVER IN 19 3 3 

The budget law (no. 4632) of January 6, 1923, fixed the fineness 

of Brazil's silver coinage to correspond with that in force in Great 

Britain, namely 0.500. This was reaffirmed in Decree No. 15936 of 

January 24, 1923. 

A decree (no. 21358) of May 4, 1932, authorized the issuance of 

commemorative silver, copper, and nickel coins, and set no limit 

thereon, other than to fix the legal tender maximum for this issue 

at 40 milreis. 

Possibility of increased use of silver without new legislation.—In 

the opinion of the director of the Brazilian mint, there is no limit 

on the issuance of silver. In any case, should a legal obstacle be 

encountered, the coinage of additional silver could be provided by 

decree. If the 1912 law be regarded as limiting the coinage of silver, 

the maximum issue would be about 45,000,000 milreis, or between 

8 and 9 times the present circulation of about 5,500,000 milreis. 

Attitude toward silver.—Brazil provides comparatively little silver 

(the yield in 1931 amounting to only 10,000 ounces) and there is no 

particular preference for the metal. The only motive which might, 

conceivably, induce the Government to coin silver would be the seigniorage. It is pointed out, however, that such profit is greater in the 

case of subsidiary coins of other metal. The present circulation of 

copper and nickel coins is estimated at 10 times that of silver. The 

increased employment of silver as subsidiary money appears unlikely. So, also, does the use of silver as a monetary reserve. 

Present employment of silver.—As stated above, the circulation 

of silver coins is estimated at 5,500,000 milreis. During the three 

years 1927-29, the coinage of silver amounted to 2,000,000 milreis. 

Not all of this is circulating, since much is hoarded in the interior, 

or lost. 

Under the provisions of legislation prior to the decree of May 4, 

1932 (mentioned above), the legal-tender limit for silver coins is put 

at 20 milreis. Decree No. 5413 of 1889 provided for 2- and 1-milreis 

and 400-reis silver coins of 0.917 fine; Law No. 559 of 1898, for 4-, 2-, 

and 1-milreis and 400-reis silver coins of the same fineness; various 

laws from 1905 to 1913 for 2- and 1-milreis and 500-reis silver coins 

0.900 fine; and legislation in 1920, 1922, and 1923 for 2-milreis coins 

0.900 and, later, 0.500 fine. 

BRITISH EAST AFRICA (KENYA, UGANDA, AND TANGANYIKA)13 

The monetary unit is the East African shilling, divided into 100 

cents. The principal unit used in foreign exchange transactions 

is the pound sterling. The par value of the East African shilling 

is approximately $0.2433. 

Present legal provisions.—The law provides for only two silver 

coins, the shilling and the 50-cent piece; these are unlimited legal 

tender. The currency is controlled by the East African Currency 

Board, which maintains a stable rate of exchange between British 

East Africa and London. 

There are no restrictions on the importation or exportation of 

silver in any form. 

In Uganda, since the substitution of East African currency for 

the florin currency in January 1922, the latter continues to be legal 

13 See also Zanzibar. 

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tender, although being withdrawn from circulation. (The florin of 

100 cents made its appearance in 1921 as a substitute for the British 

Indian rupee and was accompanied by the shilling, which was to 

replace the half rupee.) 

Present employment of silver.—As of June 30, 1931, the stock of 

silver in circulation in British East Africa was reported by the currency board as £3,184,984, made up of £2,897,020 shilling currency, 

£68,964 " florin and rupee currency and £219,000 " in currency 

strong room." 

Silver in circulation in Tanganyika at the end of 1931 was reported 

as 10,684,301 shillings and silver " in stock " as 22,936,105 shillings. 

British silver circulates in the coastal towns and cities at a small 

discount. 

BRITISH EMPIRE 

See United Kingdom and the other principal dominions and 

colonies, which are separately treated in this bulletin. 

The British coinage system is used in a large part of the British 

Empire. According to British Under Secretary of State Amery, 

in a statement made in Parliament on February 26, 1920, British 

silver coinage is legal tender in the following 27 dominions, colonies, 

and protectorates:14 

Country Legal-tender limit 

Australia Up to 40s. 

Bahamas No limit. 

Barbados No limit. 

Basutoland15 _ Up to 40s. 

Bechuanaland (a protectorate of the Union of South 

Africa) Up to 40s. 

Bermuda No limit. 

British Guiana No limit. 

Falkland Islands No limit. 

Fiji Islands (and rest of Oceania) Up to 40s. 

Gambia No limit. 

Gibraltar Up to 40s. 

Gold Coast No limit. 

Grenada No limit. 

Jamaica (including Turks and Caicos Islands) No limit. 

Leeward Islands No limit. 

Malta Up to 100s. 

New Zealand Up to 40s. 

Nigeria No limit. 

Nyasaland Up to 40s. 

Rhodesia Up to 40s. 

St. Helena Up to 40s. 

St. Lucia No limit. 

St. Vincent No limit. 

Sierra Leone No limit. 

Swaziland Up to 40s. 

Trinidad (including Tobago) No limit. 

Union of South Africa (including the mandated territory of Southwest Africa and Wales Bay) Up to 40s. 

According to the Bureau of the Mint, the British coinage system 

is in use in the following additional places: British East Africa (including Kenya, Uganda, and Tanganyika), Guernsey, Jersey, Papua 

(New Guinea). 

14 Congressional Record, Senate, May 30, 1932, p. 11524. The comments in parentheses 

have been added by the author and are not included in the original statement. 

15 Governed by the High Commissioner for South Africa. 

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26 MONETARY USE OF SILVER IN 19 3 3 

The following is according to the Monthly Review of the Standard Bank of South Africa for December 1932: " Since the departure of Great Britain from the gold standard in September 1931 

British and South African silver coins have continued to circulate 

in the Union on the basis of equal value. In consequence, however, 

of heavy importations of the former from Rhodesia and overseas 

to obtain the exchange advantage, the Government decided to withdraw from circulation all British silver, and as from January 15 

(1933) the latter will cease to be legal tender in the Union, and will 

realize only its current exchange value."

 16 

BRITISH GUIANA 

The monetary unit is the British Guiana dollar, divided into 

100 cents. The British Guiana dollar has a par value of approximately $1.0138. 

Present legal provisions.—Both the pound sterling and the United 

States dollar are legal tender, the British Guiana dollar being 

pegged to sterling at 4 shillings 2 pence. Silver may not be exported without the governor's permission. 

Attitude toward silver.—There seems to be no intention to change 

the present monetary use of silver. 

Present employment of silver.—The British Guiana dollar is 

issued only in the form of paper notes. The recognized currency 

includes British silver coins and a local silver bit, or 4-penny piece. 

In 1926 the royal mint struck 30,000 of these pieces for British 

Guiana. 

According to the Bureau of the Mint, in 1930 silver in British 

Guiana banks and the treasury was, at face value, equivalent to 

$205,000 United States currency. 

BRITISH HONDURAS 

The monetary unit is the British Honduras dollar, divided into 

100 cents. The British Honduras dollar has a par value of $1. 

Present legal provisions.—The currency was established by British Honduras Ordinance No. 31 of 1894, now chapters 35 and 36 

of the Consolidated Laws of British Honduras, 1924. The silver 

money in use includes United States coins other than the standard 

silver dollar, these coins being accepted at par, and the coins named 

in the 1894 ordinance which are shown in the following table: 

Denomination Fineness Gross 

weight 

50 cents _ . _ _ _ . . _ . _ ___ 0.925 

.925 

.925 

.925 

Grams 

11. 6205 

5.8102 

2. 3241 

1.1620 

25 cents.. _ _ _ _ . . - ------- - -_-___ _ 

0.925 

.925 

.925 

.925 

Grams 

11. 6205 

5.8102 

2. 3241 

1.1620 

10 cents. - ------- - - _ . - _ 

0.925 

.925 

.925 

.925 

Grams 

11. 6205 

5.8102 

2. 3241 

5 cents .. . .. . .. . .. . - 1.1620 

0.925 

.925 

.925 

.925 

Grams 

11. 6205 

5.8102 

2. 3241 

1.1620 

0.925 

.925 

.925 

.925 

Grams 

11. 6205 

5.8102 

2. 3241 

1.1620 

Silver is limited in legal tender to $10. 

Possibility of increcosed use of silver without new legislation.— 

Article 5 of the coinage ordinance states that " subsidiary coins may 

16 For details see Union of South Africa. 

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MONETARY USE OF SILVER IN 19 3 3 27 

be from time to time coined for British Honduras, under the directions of the master of the mint, of the metals, denominations, 

weights, and finenesses (if any) specified in the third schedule to this 

ordinance." 

Article 6 states: " If the Governor of British Honduras at any 

time requests that any new subsidiary coins, whether of silver, nickel, 

or mixed metal be coined, and the treasury and a secretary of state 

approve such request, those new coins may be so coined under the 

direction of the master of the mint." 

Attitude toward silver.—No report has been received to indicate 

any intention of altering the subsidiary position of silver in the 

monetary system. 

Present employment of silver.—In addition to the coins mentioned 

above, British coins are tendered occasionally, as when a British 

warship calls. 

The 5-cent silver piece is now rarerly found in circulation. 

BRITISH INDIA17 

The monetary unit is the rupee, divided into 16 annas. The 

rupee has a par value of approximately $0,365. British Indian 

coins are in use in Ceylon, British Somaliland, Zanzibar, Pemba, 

Mauritius, and elsewhere, but are being withdrawn from circulation in Iraq (which see). The monetary unit in Ceylon 

is the rupee, but fractional coins differ from those in use in British 

India. (See Ceylon.) In Mauritius, the rupee is divided into 

100 cents and " cent" coins are in use. Mauritius employs silver 

coins in denominations of one, one half, one fifth, and one tenth 

rupee. In Zanzibar silver coins in the denomination of one eighth 

rupee are issued; these coins in silver content are proportionate to 

the rupee silver piece. 

Present legal provisions.—The British Indian " company " rupee 

was established in 1835 by the East India Company, to replace the 

sicca rupee. The company rupee was replaced by the Government 

rupee in 1862, but the weight of the coin was left unchanged at 180 

grains (11.66 grams) and the fineness at 11/12. This has continued 

to be India's standard coin, although, with the closing of the mints 

in 1893, the silver standard was abandoned in favor of the sterlingexchange standard. Since 1899 the rupee's exchange value has been 

officially pegged in terms of sterling, but at a ratio altered from time 

to time.18 

According to the Indian currency amendment act (no. 4) of 1927, 

which became effective April 1 of that year, rupees are redeemable 

in gold or, at the option of the controller of the currency, in the 

equivalent in sterling for immediate delivery in London, at the rate 

of 21 rupees, 3 annas, 10 pies per tola of fine gold. (One tola equals 

three eighths ounce troy, or 180 grains.) However, conversions are 

limited to a minimum of 1,065 tolas of gold or the equivalent in 

sterling.19 

17 Including British Baluchistan, Sonthal Parganas, and the Pargana of Spiti. See also 

Ceylon, Goa, Hyderabad, Pondicherry, and Travancore. 

18 Space does not permit a discussion here of the workings of the gorld, or sterling, 

exchange standard in India. The reader is referred to the Report of the Royal Commission on Indian Currency and Finance, par. 30. See J. Laurence Laughlin, A New 

Exposition of Money, Credit, and Prices, pp. 471-472. 

19 Based on price which Bank of England is by law required to pay for gold in London. 

For excerpts from the 1927 act, see Annual Report of the Director of the United States 

Mint, 1928. 

172120—33 3 

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2 8 MONETARY USE OF SILVER IN 19 3 3 

Under the same act the Government stands ready to buy fine gold 

in minimum quantities of 40 tolas (15 ounces troy).20 On September 

21, 1931, with the suspension of the gold standard in the United 

Kingdom, the Government, by Ordinance No. VI, suspended the obligation to sell gold or sterling on demand. Ordinance No. VI I of 

September 24 repealed Ordinance No. VI and restricted sales of gold 

or sterling to normal trade requirements, etc. Ordinance No. VI of 

January 30,1932, repealed all restrictions embodied in Ordinance No. 

VII of 1931. 

Silver coinage is governed by the Indian coinage act of 1906, as 

amended. Act No. IV of March 6, 1918, replaced the 2-anna (one 

eighth rupee) silver piece by a nickle-copper coin. Act No. XX I of 

1919 provided for similar nickel-copper 4- and 8-anna pieces, which 

were issued from 1919 to 1922. Since then issuance of these denominations exclusively in silver has been resumed.21 

Details of British India's silver coinage in circulation are shown 

in the following table: 

Denomination Fineness 

Gross weight 

Denomination Fineness Legal tender limit 

Grams Grains 

Legal tender limit 

1 rupee 0.916% 

.916% 

.916% 

. 916% 

11.6638 

5.8319 

2.9160 

1.4575 

180.0 

90.0 

45.0 

22.5 

Unlimited. 

Do. 

1 rupee. 

Do. 

}/2 rupee 

0.916% 

.916% 

.916% 

. 916% 

11.6638 

5.8319 

2.9160 

1.4575 

180.0 

90.0 

45.0 

22.5 

Unlimited. 

Do. 

1 rupee. 

Do. 

34 rupee 

0.916% 

.916% 

.916% 

. 916% 

11.6638 

5.8319 

2.9160 

1.4575 

180.0 

90.0 

45.0 

22.5 

Unlimited. 

Do. 

1 rupee. 

yB rupee Do. 

0.916% 

.916% 

.916% 

. 916% 

11.6638 

5.8319 

2.9160 

1.4575 

180.0 

90.0 

45.0 

22.5 

Unlimited. 

Do. 

1 rupee. 

Do. 

0.916% 

.916% 

.916% 

. 916% 

11.6638 

5.8319 

2.9160 

1.4575 

180.0 

90.0 

45.0 

22.5 

Unlimited. 

Do. 

1 rupee. 

Do. 

Although minting of silver one eighth rupee pieces was discontinued in 1918, they continue to be legal tender and are, therefore, 

included in the table. They are being gradually withdrawn from 

circulation whenever presented at the currency offices and treasuries. 

In fact all silver coins minted prior to 1876 are being so withdrawn. 

No restriction is placed on the exportation of coin or bullion. On 

imports of silver an import duty of 7% annas per ounce was 

assessed in 1931, a corresponding excise duty being levied on silver 

mined in India.22 

India's currency reserve may be divided into two parts: (a) The 

paper-currency reserve and (b) the gold-standard reserve. 

20 At a fixed price per tola of 21 rupees, 3 annas, and 10 pies. 

21 Current details of coinage are published annually in the Report of the British Indian 

Controller of the Currency. 

22 The following history of the duty is reprinted from the Silver Market, Trade Promotion Series No. 139, pp. 43-44 : 

" An import duty on silver was first levied in India in 1894, at the rate of 5 percent ad 

valorem. This was increased in 1910 to 4 annas per fine ounce, and in 1920 was 

abolished entirely. In February 1930 the Indian Government announced the restoration 

of an import duty on silver, amounting to 4 annas (then about 9 cents) per ounce troy, 

without allowance for alloy or impurity. Exported silver was made subject to a drawback of the full duty. The new measure took effect Mar. 1, 1930. The chief object of 

the duty was to raise revenue. At the same time it gave a certain advantage to the 

Indian Government in the sale in India of silver taken from the currency reserve. On 

Mar. 17 a bill was introduced, levying on newly mined Indian silver an excise duty 

equivalent to the import duty. The bill subsequently was passed, and made retroactive as 

from Mar. 17. 

" The continued need for additional revenues' resulted in an increase in the duty on 

silver from 4 annas to 6 annas per ounce, effective Mar. 2, 1931. On Sept. 29, 1931, 

there was presented to the Indian legislative assembly a bill providing a surcharge of 25 

percent on existing duties, which raised the duty on silver, both the import and excise, 

from 6 annas to 7 % annas per ounce. The measure became effective provisionally on 

Sept. 30, pending passage by the assembly and approval by the governor general.' On 

Nov. 28, 1931, the measure was passed by the assembly and received the approval of the 

governor general." It is still in effect. 

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MONETARY USE OF SILVER IN" 19 3 3 2 9 

(a) The paper-currency reserve is governed by section 19 of the 

Indian paper currency act (X of 1923) which provides for a 

reserve in gold and silver amounting to not less than 50 percent of 

the total note circulation, the balance to be held in " rupee " and 

" sterling " securities. Not over 50,000,000 rupees of the reserve may 

be held in gold in England. Sterling securities in the reserve must 

be securities of the United Kingdom, maturing not over 1 year from 

the date of purchase. Rupee securities must be securities of the 

Government of India, and may not exceed 200,000,000 rupees. Of 

this amount, not over 120,000,000 rupees may represent so-called 

ad hoc securities, created by the Government of India for the purpose of securing an expansion of the currency, and issued to the 

controller of the currency. When it is desired to contract the currency on account of a slack season or for special purposes, as to 

strengthen the exchange through firm interest rates, this is effected 

by contracting the ad hoc securities.23 

(b) The gold-standard reserve has been built up from the profits 

on the coinage of rupees plus (until April 1923) interest on securities 

held therein.24 

Possibility of increased use of silver without new legislation.— 

The Indian Government is the sole currency authority in British 

India and may increase the circulation of silver without special 

authorization. Article 4 of the Indian coinage act of 1906 states : 

" The following silver coins only shall be coined at the mint for issue 

under the authority of the governor general in council * * *." 

Attitude toward silver.—The Royal Commission on Indian Currency and Finance (Hilton-Young commission) in 1926, in recommending the gold-bullion standard for India, also advised that the 

Government, over a 10-year period, reduce its stock of silver held 

in the treasury from the approximately 850,000,000 rupees held on 

April 3, 1926, to a maximum of 250,000,000 rupees, or a reduction 

from approximately 292,200,000 fine ounces to only 85,937,500 fine 

ounces. This recommendation was adopted as a policy of the Government, which, between 1927 and March 1932, sold 127,581,564 

fine ounces of the metal. Notwithstanding these sales, a large net 

return of rupees from circulation has more than replaced the silver 

sold, so that the Government's holdings of the white metal at the 

end of 1932 totaled 1,106,600,000 rupees, or the equivalent of 

380,394,000 fine ounces. 

It appears to be the policy of the Government to sell silver in 

accordance with the 1926 recommendations, but without creating 

undue disturbance in the silver market. Naturally, the sales are not 

announced beforehand. The attitude of the Government toward 

silver was expounded by the finance member, Sir George Schuster, 

23 To provide for seasonal or exceptional needs, such as crop movements, the currencyauthority is allowed by statute to issue currency notes as emergency currency to the 

Imperial Bank of India to the limit of 120,000,000 rupees against hundis, or internal 

bills of exchange. With the exception of this emergency currency, the amount of currency notes in circulation may not exceed the total of the reserve in metal and securities, excepting that 50-rupee or 100-rupee notes which have not been presented for 40 

years, or 1,000-rupee notes which have not been presented for 100 years after their issue, 

need not be considered as being in circulation, for the purpose of the reserve. They are 

considered as having been issued on the credit of the revenues of India and, if ever 

presented, are to be paid out of those revenues. 

24 The interest is now credited to the revenues of the Government as is the similar 

interest: earned by the paper currency reserve. (See Report of the Royal Commission 

on Indian Currency and Finance. 1926, vol. I, p. 6.) 

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30 MONETARY USE OF SILVER IN 19 3 3 

in his budget speech on February 28, 1931. Because of the importance of India in the silver market, the remarks are here quoted 

in full. 

I announced in my budget speech last year that the Government of India 

would be prepared to cooperate with other silver interests if any practical 

scheme could be devised for controlling the production of new silver and 

the sale of new and existing stocks. Unfortunately, the only response to my 

offer has been on the lines indicated in certain utterances which have appeared 

in the press by representatives of the main producing interests in America. 

In general, these gentlemen propose that their own production of new silver 

should remain unrestricted, but that governments and others who hold large 

stocks of silver should refrain from realizing their holdings, and leave the 

world's markets free for the new production. Now, whatever criticisms nonofficial members in this house may have made in the past on our policy of 

selling silver, I am sure that they would not expect the Government of India 

to part with the country's rights by acceding to any such one-sided 

arrangement. 

The demand that the Government of India should refrain from selling is, 

indeed, an astonishing proposition when the facts are studied. For, in fact, 

the whole world depends on India as a consumer. In the five years ending 

March 31, 1930, India absorbed about 540,000,000 ounces of silver or 108,000,000 

ounces per annum. According to present indications, her absorption, even in 

the current year, will be up to this average, so that the total absorption in 

six years will be about 650,000,000 ounces. As against this, the Government 

of India have sold out of their own holdings a total of only about 90,000,000 

ounces since 1926. Yet it is suggested that even this moderate realization is 

to stop, and that India is to stand aside and keep her own home market free 

to absorb the production from the mines of Mexico and the United States. 

This is clearly an unacceptable idea, and, however anxious we may be—as, 

indeed, we are—to help, we must, as a condition of cooperation, secure fair 

consideration of India's interests. In the meanwhile wTe must retain a free 

hand. 

We must also ask ourselves whether cooperation is likely to lead to the 

desired result. The more I study the matter the mpre convinced I am that 

the fall in the price of silver is part of a much wider movement, and the 

more doubtful I become whether silver can be dealt with successfully in isolation. The fall in silver prices, in fact, has not really been out of relation 

to that in the case of other metals. Taking the price of silver, tin, lead, spelter, 

and copper on March 31, 1926, and treating these prices as 100, the figures 

for the various metals at the end of January 1931 were 46.3 for silver, 41.4 

for tin, 44.8 for lead, 38.1 for spelter, and 78.1 for copper. Therefore, with 

the sole exception of copper, all these metals had fallen more than silver. 

Without going into further details, these facts alone indicate that, although 

a fall in silver prices may have wider results—owing to its currency uses—than 

a fall in the prices of other metals, nevertheless the causes that fall 

may be the same. Any action which does not touch the causes of the disease 

is hardly likely to provide a sound remedy. The conclusion to which this leads 

me is that, if there is to be an international conference of any kind for dealing with silver, it would be of far greater value to the world if it could also 

deal with all those other factors in the present world situation which might 

be affected by international cooperation. I believe that such international 

cooperation is needed, and that India can play a very important part in it. 

But the development of this idea would take me into a wider sphere than I 

can traverse tonight. I hope to find other occasions for its discussion. 

Regarding Indian hoarding of the precious metals, the matter 

has been discussed in previous publications of this bureau.25 As to 

the native attitude toward gold or silver as the standard of value 

opinion seems to be divided. 

26 See Trade Information Bulletin No. 457, The Bombay Bullion Market, by Don C. 

Bliss, Jr., and Trade Information Bulletin No. 682, The Price of Silver, Trade Information Bulletin No. 742, The Silver Market in 1930; and Trade Promotion Series No. 139, 

The Silver Market, by Herbert M. Bratter. 

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MONETARY TJSE OF SILVER IN" 19 3 3 31 

Present employment of silver.—Apart from the information on 

this subject given above, the following information relative to rupees 

in circulation and in the Government reserve is pertinent. 

It was estimated that rupee pieces in circulation totaled 2,870,000,000 

in 1928.2* In 1931 the corresponding estimate was 1,433,000,000 

rupees.27 No actual statistics of the circulation are available. From 

1835 to 1923, inclusive, whole rupees were issued to a total of 

6,475,695,779. Since 1923 none have been coined. 

On December 31, 1932, notes in circulation were valued at 1,748,-

008,000 rupees. This represented a slight decrease from the previous 

year, when the circulation was 1,793,031,000 rupees. The reserve 

on December 31, 1932, was as follows: Silver coin, 978,295,000 

rupees; gold bullion, 186,774,000 rupees; silver bullion, 128,341,000 

rupees ; and securities, 454,598,000 rupees. The percentage of metallic reserve to circulation was 73.99 as against 72.14 percent on 

December 31, 1931. During 1932 there occurred a decline in silver 

coin which, on December 31, 1931, had stood at 1,150,442,000 rupees. 

The gold bullion, however, showed a large increase over the 45,-

645,000 rupees held at the end of 1931. Silver coin and bullion held 

by the treasury in recent years is shown by the following table. 

The rupee figures may be converted into fine ounces by multiplying 

by 0.34375. 

SILVER HOLDINGS OF INDIAN TREASURY AT EN D OF EAC H YEAR SINCE 191 4 

[In millions of rupees] 

End of— 

Holdings 

of coin 

and 

bullion 

Net annual 

change End of— 

Holdings 

of coin 

and 

bullion 

Net annual 

change 

1914 298.7 

294.2 

173.6 

190.5 

321.3 

436.7 

610.9 

739.7 

860.0 

866.1 

1924_ 807.6 

833.3 

1,035. 2 

1,085. 3 

1, 008. 8 

1, 080. 5 

1,199. 9 

1, 229. 9 

1,106. 6 

-58.5 

+25.7 

+202.9 

+50.1 

-76.5 

+71.7 

+ 118.4 

+30.0 

-123.3 

1915 

298.7 

294.2 

173.6 

190.5 

321.3 

436.7 

610.9 

739.7 

860.0 

866.1 

-4. 5 

-120. 6 

+16.9 

+130.8 

+115.4 

+174. 2 

+128. 8 

+120. 3 

+6.1 

1925 

807.6 

833.3 

1,035. 2 

1,085. 3 

1, 008. 8 

1, 080. 5 

1,199. 9 

1, 229. 9 

1,106. 6 

-58.5 

+25.7 

+202.9 

+50.1 

-76.5 

+71.7 

+ 118.4 

+30.0 

-123.3 

1916 

298.7 

294.2 

173.6 

190.5 

321.3 

436.7 

610.9 

739.7 

860.0 

866.1 

-4. 5 

-120. 6 

+16.9 

+130.8 

+115.4 

+174. 2 

+128. 8 

+120. 3 

+6.1 

1926 _ . 

807.6 

833.3 

1,035. 2 

1,085. 3 

1, 008. 8 

1, 080. 5 

1,199. 9 

1, 229. 9 

1,106. 6 

-58.5 

+25.7 

+202.9 

+50.1 

-76.5 

+71.7 

+ 118.4 

+30.0 

-123.3 

1917_ 

298.7 

294.2 

173.6 

190.5 

321.3 

436.7 

610.9 

739.7 

860.0 

866.1 

-4. 5 

-120. 6 

+16.9 

+130.8 

+115.4 

+174. 2 

+128. 8 

+120. 3 

+6.1 

1927 

807.6 

833.3 

1,035. 2 

1,085. 3 

1, 008. 8 

1, 080. 5 

1,199. 9 

1, 229. 9 

1,106. 6 

-58.5 

+25.7 

+202.9 

+50.1 

-76.5 

+71.7 

+ 118.4 

+30.0 

-123.3 

1918 . 

298.7 

294.2 

173.6 

190.5 

321.3 

436.7 

610.9 

739.7 

860.0 

866.1 

-4. 5 

-120. 6 

+16.9 

+130.8 

+115.4 

+174. 2 

+128. 8 

+120. 3 

+6.1 

1928_ 

807.6 

833.3 

1,035. 2 

1,085. 3 

1, 008. 8 

1, 080. 5 

1,199. 9 

1, 229. 9 

1,106. 6 

-58.5 

+25.7 

+202.9 

+50.1 

-76.5 

+71.7 

+ 118.4 

+30.0 

-123.3 

1919 

298.7 

294.2 

173.6 

190.5 

321.3 

436.7 

610.9 

739.7 

860.0 

866.1 

-4. 5 

-120. 6 

+16.9 

+130.8 

+115.4 

+174. 2 

+128. 8 

+120. 3 

+6.1 

1929_ __ 

807.6 

833.3 

1,035. 2 

1,085. 3 

1, 008. 8 

1, 080. 5 

1,199. 9 

1, 229. 9 

1,106. 6 

-58.5 

+25.7 

+202.9 

+50.1 

-76.5 

+71.7 

+ 118.4 

+30.0 

-123.3 

1920 

298.7 

294.2 

173.6 

190.5 

321.3 

436.7 

610.9 

739.7 

860.0 

866.1 

-4. 5 

-120. 6 

+16.9 

+130.8 

+115.4 

+174. 2 

+128. 8 

+120. 3 

+6.1 

1930 

807.6 

833.3 

1,035. 2 

1,085. 3 

1, 008. 8 

1, 080. 5 

1,199. 9 

1, 229. 9 

1,106. 6 

-58.5 

+25.7 

+202.9 

+50.1 

-76.5 

+71.7 

+ 118.4 

+30.0 

-123.3 

1921 

298.7 

294.2 

173.6 

190.5 

321.3 

436.7 

610.9 

739.7 

860.0 

866.1 

-4. 5 

-120. 6 

+16.9 

+130.8 

+115.4 

+174. 2 

+128. 8 

+120. 3 

+6.1 

1931 

807.6 

833.3 

1,035. 2 

1,085. 3 

1, 008. 8 

1, 080. 5 

1,199. 9 

1, 229. 9 

1,106. 6 

-58.5 

+25.7 

+202.9 

+50.1 

-76.5 

+71.7 

+ 118.4 

+30.0 

1922 -123.3 

298.7 

294.2 

173.6 

190.5 

321.3 

436.7 

610.9 

739.7 

860.0 

866.1 

-4. 5 

-120. 6 

+16.9 

+130.8 

+115.4 

+174. 2 

+128. 8 

+120. 3 

+6.1 

1932 

807.6 

833.3 

1,035. 2 

1,085. 3 

1, 008. 8 

1, 080. 5 

1,199. 9 

1, 229. 9 

1,106. 6 

-58.5 

+25.7 

+202.9 

+50.1 

-76.5 

+71.7 

+ 118.4 

+30.0 

-123.3 

1923 

298.7 

294.2 

173.6 

190.5 

321.3 

436.7 

610.9 

739.7 

860.0 

866.1 

-4. 5 

-120. 6 

+16.9 

+130.8 

+115.4 

+174. 2 

+128. 8 

+120. 3 

+6.1 

807.6 

833.3 

1,035. 2 

1,085. 3 

1, 008. 8 

1, 080. 5 

1,199. 9 

1, 229. 9 

1,106. 6 

-58.5 

+25.7 

+202.9 

+50.1 

-76.5 

+71.7 

+ 118.4 

+30.0 

-123.3 

BRITISH NORTH BORNEO 

The monetary unit is the Straits dollar, divided into 100 cents. 

The par value of the Straits dollar is approximately $0.5678. 

Present legcA provisions.—Ordinance No. 3 of January 2, 1914, 

established the Straits dollar as the monetary unit in British North 

Borneo. 

A subsidiary 25-cent British North Borneo silver piece is minted 

0.500 fine. It weighs approximately 2.85 grams and is legal tender 

to the amount of 5 Straits dollars. 

All Straits Settlements money is legal tender in British North 

Borneo. 

G. Findlay Shirras in the Economic Journal (London), December 1929. Mr. Shirras 

described tlie rupee-census method in the Journal of the Royal Statistical Society (London), July 1920. 

27 Estimated by C. S. Rangaswami, of Calcutta. 

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32 MONETARY USE OF SILVER IN 19 3 3 

No foreign subsidiary coins other than those of the Straits Settlements may be imported, except in quantities of $1 or less. 

Present employment of silver.—It was estimated in 1980 that there 

were about 34,000 Straits dollars in North Borneo 25-cent silver 

pieces in circulation. Few Straits Settlements coins are in circulation in British North Borneo. The stock of silver at the end of 

1931 was reported to the United States Bureau of the Mint as 32,000 

Straits dollars, of which the amount in the treasury was 17,449. 

BRITISH OCEANIA 

The monetary unit is the pound sterling, divided into 20 shillings 

of 12 pence each. The par value of the pound sterling is approximately $4.8666. 

Present legal provisions,—See United Kingdom. 

Possibility of increased use of silver without new legislation.—See 

United Kingdom. 

Attitude toward silver.—See United Kingdom. 

Present employment of silver.—Both British and Australian coins 

circulate in British Oceania. 

BRITISH SOMALILAND 

The monetary unit is the British Indian rupee, divided into 16 

annas. The rupee has a par value of approximately $0,365. 

Present legal provisions.—The Indian coinage act of 1906 and all 

other British Indian currency laws are in force in British Somaliland. in accordance with Somaliland orders in council of 1917 and 

1920. 

Under the exports and imports ordinance, 1920, exportation of 

silver coin or bullion from British Somaliland is prohibited, except 

by special permission of the treasury. 

Present employment of silver.—At the end of 1931 silver coin in 

the treasury totaled £188,280, and in circulation £911,720. 

BRITISH WEST AFRICA 

GAMBIA, GOLD COAST, NIGERIA, AND SIERRA LEONE 

The monetary unit is the West African pound, divided into 20 

shillings of 12 pence each. The West African pound has a par 

value of approximately $4.8666. 

Present legal provisions.—The law makes all United Kingdom and 

West African silver coins legal tender to any amount. Four denominations of West African silver coins were introduced in 1913, 

namely, two-shilling, one-shilling, sixpence, and threepence pieces. 

These coins were of the same weight and fineness as the then corresponding coins of the United Kingdom. In 1920 the fineness was 

lowered from 0.925 to 0.500. 

Under authority granted by the Act of August 21, 1924, the West 

African Currency Board controls the importation and exportation 

of all currency into British West Africa. No currency can be 

imported or exported without a permit from the board. 

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MONETARY USE OF SILVER IN" 19 3 3 33 

Possibility of increased use of silver without new legislation—The 

issuance of new silver currency could be accomplished without new 

legislation, by substituting silver for other forms of money. 

Attitude toward silver.—The increased employment of silver for 

currency purposes seems to be unlikely. 

Present employment of silver.—The silver coins current in British 

West Africa are United Kingdom and West African silver coins in 

denominations of two shillings, one shilling, sixpence, and threepence. The West African silver coins introduced in 1913 are being 

withdrawn from circulation and replaced by nickle-bronze coins. 

On June 30, 1929, West African silver coins in circulation were 

reported as approximately £2,228,000. As of the end of 1931, silver 

coin in circulation in the Gold Coast was reported as £200,000; in 

Nigeria, £179,542; and in Sierra Leone, £6,000. 

No figures are available on the circulation of United Kingdom 

coins in West Africa, but it is known that they are not in general 

use, and are being withdrawn. 

Regarding the withdrawal of silver from circulation, the Treasurer of Nigeria in this report for the fiscal year 1928-29 stated: 

" Silver coin to the value of £173,458 was withdrawn from circulation during the year, of which £118,023 was shipped to the United 

Kingdom to be melted down; £10,000 was exported to Liberia and 

£40 to the Gold Coast."

 28 Exports of silver coin in 1929-30 totaled 

£266,505 (face value) and in 1930-31 £359,248. The total shipped 

from 1913-14 to June 1931, inclusive, was £10,718,580, made up of 

£4,610,300 in United Kingdom silver coin, and £6,108,280 in West 

African silver coin. 

BRUNEI 

The monetary unit is the Straits dollar, divided into 100 cents. 

The par value of the Straits dollar is approximately $0.5678. 

Present legal provisions.—See Straits Settlements. According to 

Enactment No. 5 of 1908 the Resident has the power to prohibit, by 

public notification, importation and exportation of coin. 

Possibility of increased use of silver without new legislation.—No 

special coins are minted for Brunei. 

Attitude toward silver.—No intention to change the present system 

has been reported. 

Present employment of silver.—While a few Sarawak and British 

North Borneo coins circulate in Brunei, Straits Settlements coins 

predominate. Coins in denominations of 20 cents or less are legal 

tender in amounts of 2 Straits dollars. 

BULGARIA 

The monetary unit is the lev, divided into 100 stotinki. The 

lev has a par value of approximately $0.0072. 

Present legal provisions.—The currency was stabilized by the Law 

for the Stabilization of the Lev and Monetary Circulation in the 

Kingdom of Bulgaria, published December 3, 1928. The law 

28 The £2,228,000 figure mentioned above compares with a total currency circulation of 

over £13,612,000. 

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34 MONETARY USE OF SILVER IN 19 3 3 

repealed earlier laws of 1880, 1897, and 1919. By it silver coins in 

payments other than to the Government are limited in legal tender 

to 2,000 leva. 

The 1928 law provided for silver coins as shown in the following 

statement.29 The original law made the coins 0.680 fine, but a 

subsequent amendment reduced this to 0.500. 

100 leva; 0.500 fine; gross weight, 20 grams. 

50 leva; 0.500 fine; gross weight, 10 grams. 

20 leva; 0.500 fine; gross weight, 4 grams. 

Article V of the law of 1928 states: " The nominal value of the 

metal coin put into circulation shall not exceed 300 leva per person, 

as determined from the last census results." 

Trade in and exportation of silver, silver coins, and silver salts 

is unrestricted, as provided in article 9 of the 1928 law. 

According to the 1928 law, " the coinage of silver pieces, as well 

as that of the small-change money of common metals, shall be in 

accordance with articles 8 and 73 of the national bank law on the 

recommendation of the Minister of Finance and authorized by a 

royal decree to be published in the Official Gazette. The Bulgarian 

National Bank shall have the right to return to the State treasury 

coins in any amount it may find necessary, and the State treasury 

shall pay the bank for the nominal value of the coins so returned." 

Up to the 300 leva limit, mentioned above, new coins may be issued 

without new legislation. (Bulgaria's population in 1931 was 

estimated at 6,031,000.) 

Possibility of increased use of silver without new legislation.— 

Since coin minted amounted to only 1,241,000,000 leva in March 

1933, several hundred million leva of coin may be issued without 

new legislation. 

Attitude toward silver.—The 1928 law keeps silver in a subsidiary 

position, and no change in this respect seems likely. There is no 

intention of increasing the present silver coinage, which apparently 

is entirely adequate for the needs of the country. 

Present employment of silver.—In July 1929 it was decided to 

mint 580,000,000 leva in silver, out of metal held by the National 

Bank of Bulgaria in the form of old Bulgarian coins. 

Bulgarian silver currency in circulation was reported as follows 

in March 1933, the actual amount of silver used in its manufacture 

totaling 80,314,621 grams. 

The 807,182,120 leva compares with a total of 1,240,572,120 leva 

for all metallic money, including silver. In citing these figures, 

Consul John McArdle reported from Sofia on March 10, 1933, as 

follows: 

Up to September 30, 1930, the National Bank of Bulgaria held as a currency 

reserve, with gold, a certain amount of silver coins of different mints, valued 

at 169,962,190 leva. According to the register of the bank, these silver coins 

Face value in leva 

20 leva 

50 leva 

100 leva 

200,159, 820 

451, 400, 000 

155, 622, 300 

Total. 807,182,12 0 

20 Annual Report of the Director of the Mint, 1929, p. 151. 

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MONETARY USE OF SILVER IN 19 3 3 35 

weighed 93,954,162 grams, the content of fine silver being placed at 80,149,375 

grams. The coins, on the basis of the prevailing price of silver, were sold 

to the treasury for 128,532,802 leva, or at the approximate rate of 1.60 leva 

for one gram of fine silver. The treasury also purchased in the open market 

approximately 400,000 grams of silver, valued at 784,980 leva. Thus, the total 

amount of fine silver available totaled 80,639,375 grams, valued at 129,317,782 

leva, which was used in minting the present silver coinage of the total face 

value of 807,182,120 leva. 

It should be noted that from September 30, 1930, silver ceased to serve as a 

currency reserve of the National Bank of Bulgaria. 

The coinage circulation figures compare with a note issue of 

2,426,000,000 leva at the end of January 1983. 

CANADA 

The monetary unit is. the Canadian dollar, divided into 100 

cents. The Canadian dollar has a par of $1. 

Present legal provisions.—The 1910 Currency Act as amended 

to date governs the monetary use of silver. The act provides for 

silver coins in denominations of $1, and 50, 25, 10, and 5 cents, all 

0.800 fine and legal tender for payments of not over $10. The law 

provides that, ordinarily, coining shall be done at the Ottawa branch 

of the Royal Mint. 

The Minister of Finance may from time to time issue, out of the 

consolidated revenue funds, such sums as may be necessary for the 

purchase of bullion in order to provide supplies of coin for the 

public service. 

The Governor in Council may from time to time by proclamation determine the dimensions of and designs for any coin, denominations, remedy, etc., and revoke or alter any proclamation previously made. The latter proviso would seem to give him very wide 

powers. 

Possibility of increased use of silver without new legislation.— 

Because the Governor in Council has considerable latitude, as described above, it appears that the monetary use of silver could be 

extended without further legislation. 

Attitude toward silver.—Despite the foregoing, there is evident 

no tendency to increase substantially the issue of silver coins, and 

no legislation involving the monetary use of silver is believed to be 

contemplated. 

Present employment of silver.—Canadian silver coins in circulation totaled approximately $28,159,500 on October 17, 1932. This 

was an increase of almost $427,000 within a year. The increase, it 

is explained, was caused by the replacement of American silver 

coins withdrawn from circulation because of the premium on the 

American dollar. 

It is of interest to note that the mint at Ottawa passed from 

British to Dominion control on December 1, 1931, and is now the 

Royal Canadian Mint, a branch of the Canadian Department of 

Finance. With this change, the right to coin sovereigns was 

abandoned. 

CANARY ISLANDS 

The monetary system of Spain applies to the Canary Islands. 

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36 MONETARY USE OF SILVER IN 19 3 3 

CAPE VERDE ISLANDS 

The monetary unit is the escudo, divided into 100 eentimos. The 

escudo has a par value of approximately $0.0442. 

Present legal provisions.—The Portuguese coinage system applies 

to the Cape Verde Islands. (See Portugal.) The coins are identical, 

excepting for the additional wording " Cabo Yerde." 

The issuance of coin is controlled by the Banco Nacional Ultramarino, which by Decree No. 17154, of July 26, 1929, became the 

bank of issue for all Portuguese colonies other than Angola, this 

privilege to run for 30 years, beginning August 5, 1929. 

CEYLON 

The monetary unit is the rupee, divided into 100 cents. The 

rupee has a par value of approximately $0,365. 

Present legal provisions.—The standard coin of Ceylon is the 

British Indian rupee, as provided by the Ceylon coinage order of 

February 6, 1892. The fineness of the subsidiary coins is as provided in the law of August 19, 1919, prior to which these coins were 

minted 0.800 fine. Silver coins are listed in the following table, 

the Ceylon coins being minted for the Ceylon Government by the 

Royal Mint.30 

Denomination Fineness 

Gross 

weight in 

grams 

Legal-tender limit 

British Indian rupee 0.916% 

. 916% 

. 916% 

.550 

.550 

.550 

11.6638 

5.8319 

2.9160 

5.8319 

2.9160 

1.1664 

None. 

5 rupees. 

5 rupees. 

5 rupees. 

5 rupees. 

5 rupees. 

British Indian half rupee 

0.916% 

. 916% 

. 916% 

.550 

.550 

.550 

11.6638 

5.8319 

2.9160 

5.8319 

2.9160 

1.1664 

None. 

5 rupees. 

5 rupees. 

5 rupees. 

5 rupees. 

5 rupees. 

British Indian quarter rupee 

0.916% 

. 916% 

. 916% 

.550 

.550 

.550 

11.6638 

5.8319 

2.9160 

5.8319 

2.9160 

1.1664 

None. 

5 rupees. 

5 rupees. 

5 rupees. 

5 rupees. 

5 rupees. 

50 cents 

0.916% 

. 916% 

. 916% 

.550 

.550 

.550 

11.6638 

5.8319 

2.9160 

5.8319 

2.9160 

1.1664 

None. 

5 rupees. 

5 rupees. 

5 rupees. 

5 rupees. 

5 rupees. 

25 cents. _______ _ _ 

0.916% 

. 916% 

. 916% 

.550 

.550 

.550 

11.6638 

5.8319 

2.9160 

5.8319 

2.9160 

1.1664 

None. 

5 rupees. 

5 rupees. 

5 rupees. 

5 rupees. 

10 cents _ 5 rupees. 

0.916% 

. 916% 

. 916% 

.550 

.550 

.550 

11.6638 

5.8319 

2.9160 

5.8319 

2.9160 

1.1664 

None. 

5 rupees. 

5 rupees. 

5 rupees. 

5 rupees. 

5 rupees. 

0.916% 

. 916% 

. 916% 

.550 

.550 

.550 

11.6638 

5.8319 

2.9160 

5.8319 

2.9160 

1.1664 

None. 

5 rupees. 

5 rupees. 

5 rupees. 

5 rupees. 

5 rupees. 

Under the Ceylon Paper Currency Ordinance of 1884 Ceylon currency notes are redeemable in rupees. The notes are unlimited legal 

tender. 

Possibility of increased use of silver without new legislation.—The 

1892 coinage order provides that subsidiary coins may be minted 

from time to time for the Colony. It adds: " If the Governor of 

the Colony from time to time requests any new coins of less value 

than the rupee * * * and the commissioners of Her Majesty's 

treasury approve such requests, those new coins may be so coined." 

Attitude toward silver.—The natives have for generations treasured silver along with gold, and there is a strong sentiment in favor 

of silver. The Government is, of course, influenced by opinion in 

Great Britain, the currency being definitely linked to the pound 

sterling. 

Present employment of silver.—Ceylon subsidiary silver coins outstanding at the end of 1931 were reported to total 10,343,534 rupees, 

while silver in the treasury was reported as 16,778,692 rupees. 

CHANNEL ISLANDS (GUERNSEY AND JERSEY) 

The monetary unit is the pound sterling, divided into 20 shillings 

of 12 pence each. The par value of the pound sterling is approximately $4.8666. (See United Kingdom.) 

a0 According to Monetary Units and Coinage Systems of the Principal Countries of the 

World, 1929, p. 33. 

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MONETARY USE OF SILVER IN" 19 3 3 37 

CHILE 

The monetary unit is the peso, divided into 100 centavos. The 

peso has a par value of approximately $0.1217. 

Present legal provisions.—Under the Decree Law No. 104 of 

July 1, 1932, future silver coinage will be limited to the 1-peso piece 

weighing 6 grams, 0.400 fine. Other silver coins are to be withdrawn. (In November 1932 such other coins outstanding, according 

to the Chilean Mint, amounted to 14,536,944 pesos, mostly 1-peso 

coins.31) Due to variations in the value of the Chilean peso since 

1914, the silver coinage has at times been worth less as money than 

as bullion. Therefore legislation affecting silver has been frequent. 

From 1914 to 1924 there were coined 15,000,000 pesos of 1-peso coins 

weighing 9 grams, 0.720 fine. In 1924 there were issued 10,000,000 

1-peso coins of the same gross weight, but only 0.500 fine. 

Under Decree Law No. 606 of October 14,1925, four denominations 

of silver coins were authorized, namely, y2j 1, 2, and 5 pesos, all 

0.720 fine and legal tender for payments of not over 50 pesos. The 

law was modified on December 31, 1926, so as to reduce the number 

of coins to three (a 5-peso piece 0.900 fine, a 2-peso piece 0.500 fine, 

and a 1-peso piece 0.500 fine). The law was further modified on 

November 28, 1928, so as to limit the silver coins to 1- and 2-peso 

pieces, both 0.720 fine. 

Possibility of increased use of silver without new legislation.—The 

law apparently sets no maximum on the coinage of silver. Seemingly, minting depends on various circumstances. The central bank 

has recently had to issue 7,245,000 pesos of 1-peso notes because of the 

shortage of subsidiary currency. (The maximum of such notes 

which the bank may issue is 20,000,000 pesos.) These notes, it is expected, will eventually be replaced with silver coins, when exchange 

becomes stable. The shortage of coins is explained by the activity 

of speculators, who melt down coins and export the demonetized 

metal whenever the exchange market favors such procedure. 

It is believed that no material coinage of silver will take place for 

some time. 

Attitude toward silver.—The employment of silver for subsidiary 

currency is viewed favorably in Chile, since the country produces 

the metal in modest quantities. (In 1931 its mine output was approximately 372,000 fine ounces.) 

Law No. 5146, which was published in Diario Oficial of March 25, 

1933, provides for the minting of 1-peso coins of nickel. Presumably the new coins will gradually displace silver coins of the same 

denomination now in circulation. 

Present employment of silver.—According to the United States 

Bureau of the Mint, Chile's monetary stock of silver at the end of 

1931 consisted of 12,540,353 pesos in circulation and 6,515,543 held 

in the treasury and central bank. 

On March 27, 1933, Commercial Attache Ealph H. Ackerman reported from Santiago that silver in circulation consisted of the following: 141,655 5-peso coins minted under Law No. 4111', containing 

22y2 grams of fine silver each, and totaling 708,275 pesos in value; 

713,798 2-peso coins minted under Law No. 4111, containing 9 grams 

of fine silver each, and totaling 1,427,596 pesos in value; 11,407,643 

81 See comment below, under " Present Employment of Silver." 

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3 8 MONETARY USE OF SILVER IN 19 3 3 

1-peso coins with a fineness of 0.500, containing 4.5 grams of fine 

silver, totaling 11,407,643 pesos in value, of which 3,889,669 were 

minted in accordance with Law No. 4111. There have also been 

minted 4,000,000 1-peso coins having a fineness of 0.400, minted in 

accordance with Decree Law No. 104. No silver coins were minted 

in accordance with the provisions of Decree Law No. 606 and Law 

No. 4468. 

CHINA 32 

The monetary unit of the Nationalist Government is the yuan, 

divided into 100 fen [cents]. The yuan, being silver, has no fixed 

par value in terms of gold. 

Present legal provisions.—China's currency system is complicated, 

and may best be described without making detailed reference to the 

numerous coinage laws promulgated since the overthrow of the Empire in 1911 or to the various local currencies. 

While the greater part of China's small business is conducted with 

copper as the medium of exchange, the country's principal currency 

metal is silver, which may be said to be the standard of value. In 

certain sections silver circulates principally in the form of yuan 

coins, while in others, bullion in the form of " shoes " of sycee comprises the main medium of exchange in large-size business transactions.33 Bank notes secured by silver are extensively used in the 

larger cities. 

It may be said that practically throughout China, silver in almost 

any form is money. In this sense China can be said to have free 

coinage. Until April 1933 there were no important restrictions on 

the importation or exportation of silver, imports of foreign silver 

coins alone being prohibited.34 A great part of China's business 

is done by means of different taels. A tael, called " liang" in 

Chinese^ may be described as a local Chinese " ounce " of silver, 

varying in content according to locality. The principal taels in 

use at the beginning of 1933 were: The Shanghai tael, used in and 

32 The use of silver in Hong Kong and Mongolia is described in separate sections; 

the use of silver in Manchuria is described at the end of this section. 

33 Thus, according to an article in the Chinese Economic Journal for February 1933, 

the tael had been a more popular monetary unit in Shanghai than the yuan, but in the 

interior of China business is done largely in terms of yuan. This explains why bar 

silver was more frequently minted into coin than cast into sycee. " Shanghai has long 

been known as the place where dollars accumulate, but as a matter of fact Shanghai is 

mainly a tael-using port, and the accumulation of yuan is made possible only because its 

geographical position makes it a convenient center for distribution. Moreover, bar silver 

is often more profitably minted than converted into sycee, on account of the higher price 

of the yuan ; as compared with its bullion value. Only when yuan have depreciated to 

such an extent that they are quoted at a lower level than that of their silver content, are 

they melted into sycee. But then [sycee being manufactured from coin] there would be 

less demand for bar silver, and its reexport to the United States would most probably 

take place, as was the case in 1932 when the tael-yuan exchange fell to an unprecedented 

low rate. * * * Sycee has practically disappeared from Chinese cities and, according to one expert's estimate, of the total sycee in China—100,500,000 Shanghai taels— 

there was approximately 100,000,000 Shanghai taels in Shanghai." 

34 This restriction, imposed in 1930, was directed chiefly at the flow of French IndoChinese piasters which had been occasioned by the stabilization of that unit commencing in 

the latter part of 1929. Such imports into China, however, normally do not form an 

important part of China's silver imports. 

A local prohibition of exports of silver coin was announced by the Cantonese authorities 

in the latter part of 1932. On Oct. 5 Finance and Commerce [Shanghai] reported : "Due 

to the outflow of small-coin silver from Canton to Shanghai for arbitrage reasons, the 

Cantonese authorities are realizing that, out of the 70,000,000 yuan small coin of the 

Sun Yat Sen type, only 45,000,000 are left. The remainder has disappeared, the bulk 

having found its way to the melting pots of the Shanghai loofangs. * * * At the 

close of September the Canton Government issued an order prohibiting the export of 

silver. No person is permitted to bring out of Kwangtung silver coins exceeding 50 

yuan in value." 

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MONETARY USE OF SILVER IN" 19 3 3 3 9 

around Shanghai; and the haikwan tael, not a currency but a unit 

used only by the Chinese Maritime Customs in the collection of 

export duties and for statistical valuation of imports and exports. 

According to a cabled report from Shanghai, Chinese banks, exchanges, and business firms on April 6, 1933, discontinued the use 

of the tael as a unit of value and of sycee as a medium of exchange, 

in accordance with the order of the Central Government of China. 

Thus, the new yuan replaces tael currency. The use of the haikwan 

tael has also been discontinued, according to an announcement made 

on March 10, 1933, by the Chinese Maritime Customs. 

The principal coin of China is the yuan, which has hitherto 

varied somewhat in weight or fineness but which now is minted at 

the new Shanghai mint35 to weigh 26.6971 grams 0.880 fine. 

The mint accepts silver for coinage into yuan at 71% Shanghai tael 

cents36 per yuan.37 Operations at the new mint commenced March 

1, 1933. 

It is emphasized that China is a vast country and no single currency system applies to the whole. The currency laws of the central Government are not enforceable throughout the country. In 

South China, for example, the provincial mints have been coining 

silver intermittently as the local authorities see fit. A large part of 

the so-called " small money " silver coins which have been issued in 

China during recent years have been minted in Kwantung Province. 

These coins, purporting to be one fifth or one tenth yuan, actually 

contain an amount of silver less than proportionate to that contained in the unit, and hence circulate at approximately their value 

as bullion only. In all, there were in 1930 approximately 10 provincial mints coining silver, copper, or both. In August 1932 the 

central Government ordered all provincial mints to close, but how 

many have done so is not known. 

Shanghai Customs Notification No. 1290, dated April 7, 1933, reads 

as follows: 

The public is hereby notified that in accordance with Government instructions from April 6 this year a duty of 21

/i percent ad valorem will be levied 

on export abroad of silver sycee, silver bars, silver ingots, silver slabs and 

silver in mass. This duty, however, will not be levied on export abroad of 

central mint bars. 

Possibility of increased use of silver without new legislation.— 

There is no legal restriction on the amount of silver coin which the 

Government may issue. Should new legislation be required, it could 

be quickly and easily enacted. 

35 This central Government mint, which is entirely equipped with American machinery, 

is said to be the largest in the world. 

36 A " tael-cent " is one one hundredth of a tael. 

37 On this point Finance and Commerce of Jan, 4, 1933, commented as follows: " The 

conversion rate of 71% tael ce'ntsi per yuan is slightly higher than would be indicated by 

the silver content of the coin. The new yuan will contain 69.92305 tael cents of silver. 

Mint charges to be added to this are estimated at 1% percent, or 1.22365 Shanghai tael 

cents. This makes a total of 71.14670 Shanghai tael cents. This last-mentioned figure 

should be the official conversion rate between Shanghai taels and the new yuan for contracts or obligations entered into previously in terms of taels. That a higher quotation 

has been adopted as the official conversion rate is explained by two reasons : 

" 1. At the close of 1932 the actual rate of exchange in Shanghai as between taels and 

yuan was higher than 71.15 and it is Deemed advisable not to disturb the market ratio 

unnecessarily. 

" 2. The above-mentioned 1 % percent minting charge is only approximate. During 

continuous minting operations a 1% percent minting charge would probably cover costs. 

In the beginning, however, the cost of coinage will necessarily be higher for some time to 

come, and it is, therefore, but reasonable to give the mint some leeway by setting the rate 

at 71 % cents." 

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40 MONETARY USE OF SILVER IN 19 3 3 

Attitude toward silver.—Although the Kemmerer Commission's 

recommendation that China take steps leading to the eventual adoption of the gold standard have the approval of Chinese authorities, 

the accomplishment of that transition is at present not within the 

reach of China. An essential requirement would be the accumulation of a fund to stabilize the exchange value of the new currency. 

It is evident that the authorities at Nanking have been making 

every effort to unify the currency, a step which will be necessary 

before the chief Kemmerer recommendation can be carried out. 

Among the measures of unification reported from time to time have 

been the creation of the customs gold unit February 1, 1930 38; the 

completion of the Shanghai Mint and commencement of its operations on March 1, 1933; the introduction into circulation of the new 

yuan coin immediately thereafter, accompanied by the abolition of 

the antiquated haikwan tael; and the declaration of an embargo on 

gold exports on May 15, 1930. It is the intention of the Government 

to abolish the tael system of currency as rapidly as possibly. 

Notwithstanding these measures, it will probably be a long time 

before the currency can be put on a gold basis. Even when that 

objective is attained it seems safe to predict that China will continue 

to use vast quantities of silver in its currency system. 

Present employment of silver.—Among the Chinese silver coins in 

use in China may be listed the following " dollars ": The Sun-Yatsen, Yuan-Shih-kai, dragon (over a dozen kinds), Kwangtung, 

Szechwan, and the Kweichow. Subsidiary silver coins comprise a 

very limited quantity of half^uan pieces, mostly of YuanShih-kai variety; 20- and 10-cent pieces, the 20-cent pieces being 

mostly of Canton mintage, but some also of the Yuan-Shih-kai 

mark; some Kwangsi, Yunnan, and Szechwan 20-cent pieces; and 

Yuan-Shih-kai, Dragon, and provincial 10-cent pieces. These 20-

and 10-cent pieces are current in varying degrees in various sections 

of the country, and are accepted basically on their intrinsic value 

as bullion. They are accepted by the customs at varying rates. 

For instance, in one community six and a fraction 20-cent pieces 

will exchange for a yuan, whereas in another community five and a 

fraction will be considered equivalent to a yuan—the fractions being 

paid in coppers.39 

Eduard Kann, Shanghai silver authority, estimated the quantities 

of various yuan circulating in China, as follows :40 

Yuan 

Imperial "dragon dollars" out of a total of 280,350,000 200,000,000 

Republican yuan minted from bar silver until 1930 735,443, 000 

Republican yuan minted from bar silver during 1931 32, 720, 000 

Republican yuan minted from sycee until 1930 400, 000, 000 

Republican yuan minted from sycee during 1932 59,062,000 

Republican yuan minted from melted foreign dollars and imported 

silver 200,000,000 

Total Chinese yuan 1,627,225,000 

Estimated foreign "dollars" in circulation 80,000,000 

Grand total , 1,707,225,000 

38 A bookkeeping unit rather than a currency. Some customs-gold-unit notes were 

issued, but they have not proven popular. 

39 A list of silver coins in use in various regions in China forms Appendix C of the 

Currency Report submitted to the Chinese Government on Nov. 11, 1929, by the Commission of Financial Experts headed by Prof. E. W. Kemmerer. 

40 Finance and Commerce (Shanghai), Jan. 27, 1932. 

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MONETARY USE OF SILVER IN" 19 3 3 41 

Foreign silver coins, which were circulated freely in China, are 

now infrequently encountered. The most common was the so-called 

" Mexican dollar a peso coin formerly minted in Mexico.41 Hong 

Kong, or British dollar coins were formerly used quite commonly 

in South China, but in recent years they have been largely replaced 

by the more convenient Hong Kong dollar notes. Some "Mexican 

dollars " and " Saigon dollars " are still in use. 

The stock of silver in China was, in December 1932, estimated 

at 1,600,000,000 fine ounces by Commercial Attache Julean Arnold, 

one third of the amount mentioned being held in Shanghai. Eduard 

Kann, of Shanghai, at about the same time estimated China's stock 

of silver . at 2,000,000,000 fine ounces, with holdings at principal 

places as follows: Shanghai, 530,000,000 ounces; Manchuria, 100,-

000,000 ounces; Tientsin, 100,000,000 ounces; Hankow, 50,000,000 

ounces; and Hong Kong, 150,000,000 ounces. Shanghai's stock of 

silver consists of metal in circulation or in private hoards, and that 

held by the banks. The latter silver falls into three categories— 

coin, bar silver, and sycee. Thus, on March 11, 1933, Shanghai 

banks held 161,300,000 fine ounces in the form of sycee, 220,000,000 

yuan of silver coin, and 12,120 bars (each weighing approximately 

1,050 fine ounces). The total weight of the three classes was 

approximately 345,020,000 fine ounces. Comparative figurfes for 

recent dates follow: 

SILVER HELD BY SHANGHAI BANKS ON RECENT DATES 

Date 

Sycee, in 

thousands of 

fine 

ounces 

Coin, in 

thousands of 

yuan 

Number 

of bars 

; Total in 

thousands of 

fine 

ounces 

Jan. 1,1929 62,000 

85,600 

92,400 

55,650 

146,000 

101,000 

126,000 

153,000 

168,000 

217,500 

5,740 

7,620 

2,760 

3, 660 

6,280 

147,195 

192,388 

214.929 

190,884 

321.930 

Jan. 1, 1930 

62,000 

85,600 

92,400 

55,650 

146,000 

101,000 

126,000 

153,000 

168,000 

217,500 

5,740 

7,620 

2,760 

3, 660 

6,280 

147,195 

192,388 

214.929 

190,884 

321.930 

Jan. 1,1931 

62,000 

85,600 

92,400 

55,650 

146,000 

101,000 

126,000 

153,000 

168,000 

217,500 

5,740 

7,620 

2,760 

3, 660 

6,280 

147,195 

192,388 

214.929 

190,884 

321.930 

Jan. 1, 1932 

62,000 

85,600 

92,400 

55,650 

146,000 

101,000 

126,000 

153,000 

168,000 

217,500 

5,740 

7,620 

2,760 

3, 660 

6,280 

147,195 

192,388 

214.929 

190,884 

Jan. 1, 1933 321.930 

62,000 

85,600 

92,400 

55,650 

146,000 

101,000 

126,000 

153,000 

168,000 

217,500 

5,740 

7,620 

2,760 

3, 660 

6,280 

147,195 

192,388 

214.929 

190,884 

321.930 

62,000 

85,600 

92,400 

55,650 

146,000 

101,000 

126,000 

153,000 

168,000 

217,500 

5,740 

7,620 

2,760 

3, 660 

6,280 

147,195 

192,388 

214.929 

190,884 

321.930 

Source: American Bureau of Metal Statistics. 

The figures in the foregoing table compare with a total of about 

260,000,000 yuan, representing outstanding note circulation of the 

banks in Shanghai. 

(The reader may be interested in referring to Currency, Banking and Finance in China, by Frederic E. Leer published in 1926 as Trade Promotion 

Series No. 27 (copies may be obtained at 30 cents from the Superintendent of 

Documents, Government Printing Office, Washington, D.C.) ; see also, the 

Currencies of China, by Eduard Kann, Shanghai, 1926. A suminary of the 

recommendations of the Kemmerer Commission of Financial Experts in 1929 

as relating to China's currency system was published by the Finance and 

Investment Division, Bureau of Foreign and Domestic Commerce, as Special 

Circular No. 335 under the title " The Kemmerer Recommendations for Currency Reforms in China.") 

KWANTUNG LEASED TERRITORY 

In the Kwantung Leased Territory, the Japanese coinage system 

applies. 

41 The U.S. Bureau of the Mint states that this coin weighs 27.07 grams and is 0.9027 fine. 

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42 MONETARY USE OF SILVER IN 19 3 3 

MANCHURIA 

Present legal provisions.—Although Manchuria's currency for 

years consisted principally of paper notes, the changes inaugurated 

in 1932 are designed to give the country the silver standard until 

such time as the gold standard can be adopted. 

To " unify and stabilize " the currency of Manchuria, the Central 

Bank of Manchukuo was established June 15, 1932. Not only are 

its notes designed to replace the numerous kinds of paper money 

previously issued in Manchuria—a process already commenced—but 

the bank is intended to be the sole medium for the issuance of coin 

as well. Article XIV of " the law of the central bank of Manchukuo " states that the central bank shall issue notes and coins as provided in the currency law, article I of which reads: 

The right of minting and issuing coins belongs to the Government. The Government shall instruct the Central Bank of Manchuria to carry it out. 

The law provides that the monetary unit shall be 23.91 grams of 

pure silver, the unit to be known as a " yuan."

 42 The yuan is divided decimally into tenths, called " chio"; hundredths, called 

" fen" (in English, cents); and thousandths, called " li." The 

law provides that for paper notes there shall be a reserve of at least 

30 percent in gold and silver bullion, reliable foreign currencies, and 

deposits with foreign banks in gold and silver accounts. It also 

provides for nickel and copper coins. Although the law makes no 

provision for silver coins, it was reported from Mukden in December 

1932 that the central bank would soon open the Mukden mint for the 

coinage of subsidiary silver 5-, 10-, and 50-cent pieces, similar in 

appearance to the Japanese coins. 

The regulations governing the readjustment of the old currency 

provide (art. 9) : " Silver bullion (silver ingots and silver yuan 

included) shall not, because of these regulations, be used as currency 

for circulation."43 

A premium on the new Manchurian paper currency was reported 

in December 1932 by Assistant Trade Commissioner Louis C. Venator at Mukden. He stated: 

The new central bank has restricted the issue almost to the point of scarcity 

and has undertaken the free sale of silver yen or Chinese exchange at a 

favorable rate whenever doubt regarding the new currency has appeared in 

the market. 

Silver-yen notes have long been issued in Manchuria. These 

notes, called by the Chinese yin piao or chao piao, are currency 

notes issued by the Dairen (Manchuria) branch of the Yokohama 

Specie Bank. They circulated exclusively in Manchuria. 

The notes were first temporarily issued at Newchang in 1900; 

after the Russo-Japanese War they were issued in redemption of 

the silver military notes which had been issued in large quantities 

in Manchuria by the Japanese forces, and they have been issued 

at Dairen continuously since 1903. In recent years there have been 

only a limited amount of silver-yen notes in circulation—just below 

6,000,000 silver yen of them in 1929. 

42 The symbol for thisi yuan isi M¥, according to am announcement of the central bank 

effective Nov. 1, 1932. 

43 According to a report to the Finance and Investment Division dated Oct. 24, 1932. 

See, also, Japan Advertiser of Oct. 26, 1932. A printed pamphlet issued in Mukden in 

December, however, makes no mention of this article, " The Central Bank of Manchukuo 

and Laws Relating Thereto with Appendix 

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Silver-yen notes are not converted into silver-yen coins, but are 

in practice converted into exchange on Shanghai (and sometimes 

other Chinese centers), in taels, at a rate of exchange announced 

from time to time by the Yokoha,ma Specie Bank. Such rate is 

usually very close to parity between the old silver-yen coin and the 

Shanghai tael. 

The mechanism for the stabilization of the Manchurian currency 

in relation to the Shanghai tael is embodied in the following regulations as reported in October 1932. 

EXCHANGE RATE BETWEEN THE PAPER, CURRENCY AND SILVER BULLION OR FOREIGN 

SILVER DRAFT NOTES 

1. In accordance with article 10 of the currency laws, when paper currency 

is used for the exchange of silver yuan, the rate given below s,hall be used 

for the calculation: Paper currency 100 yuan shall equal 100 yuan silver. 

2. In accordance with article 10 of the currency laws, when paper currency 

is used for the exchange of foreign silver draft notes, the rate given below 

shall be used for payment of silver draft notes payable at Shanghai: Paper 

currency 100 yuan shall equal Shanghai taels 71. 

3. In accordance with article 11 of the currency law, when silver bullion 

(silver ingots and silver dollars included) is used to meet payment in paper 

currency as required by the business at Shanghai of the Central Bank of 

Manchuria, the rate given below shall, be used for calculation in issuing draft 

notes payable at places where the head and branch office (of the bank) is 

located: Shanghai taels 73.50 shall equal 100 yuan paper currency. 

4. When the head and branch offices of the Central Bank of Manchuria use 

silver bullion to demand the issuance of paper currency, silver yuan 100 shall 

be calculated as 100 yuan paper currency; while other silver bullion shall be 

calculated at the rate given below: Shanghai taels 74 shall be the equivalent 

of the silver bullion equal to paper currency yuan 100. 

5. The rates provided in articles 2, 3, and 4 may be altered by orders of the 

Government. 

6. These regulations shall come into effect from the day of promulgation. 

Attitude toward silver.—According to an item published in the 

Japan Advertiser of October 29, 1932: 

Vice Governor Kyoroku Yamanari of the Central Bank of Manchukuo states 

that there is some discussion in Japan as to the relative merits of the gold 

standard and the silver standard as the basis for Manchukuo's currency 

system. For the present he regards the silver standard as best, stating that 

it was adopted with the understanding that the gold standard would be 

substituted in the future. 

Present employment of silver.—Relatively little silver has been 

in circulation in Manchuria during recent years. Since the creation 

of a premium on the new notes (as mentioned above) considerable 

quantities of Chinese yuan coins have been moving from China 

to Manchuria, where in great part they find their way to the vaults 

of the central bank. 

CHOSEN 

The coinage laws of Japan apply to Chosen. 

COLOMBIA 

The monetary unit is the peso, divided into 100 centavos. The 

peso has a par value of approximately $0.9733. 

Present legal provisions.—The law governing silver coinage provides

 44 for silver coins, 0.900 fine, in denominations of 1 peso and 

Fiscal Code, book II, chap. I, arts. 131, 132. 

172120—33 4 

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44 MONETARY USE OF SILVER IN 19 3 3 

50, 20, and 10 centavos and having a gross weight of 25 grams per 

100 centavos face value. Legal tender is limited to 10 pesos. 

Decree No. 1889 of October 23, 1931, authorized the minting of 

2,000,000 pesos of silver half-peso coins. Under this decree the 

Monetary Commission on January 19, 1932, authorized the issuance 

of 200,000 50-centavo pieces, to be struck from demonetized silver. 

The Bank of the Republic has important powers in connection 

with the currency. The organic act of the bank (Law No. 25 of 

1923, art. 21, par. D) provides that the Government must respect the 

opinion of the bank's board of directors regarding the issuance of 

subsidiary coins. 

Under the terms of the law regulating the Bank of the Republic, 

a reserve of 40 percent in gold and gold-exchange must normally 

be maintained against the note issue. Silver is permitted to be 

held to a limited extent. The Federal Reserve Bulletin of July 

1932 described the reserve requirements as follows: 

Foreign exchange may cons'st only of demand deposits. During present 

emergency reserve against notes may fall to 30 percent without enforcement 

of penalties provided by law. An additional reserve equivalent to 25 percent 

of deposits must be held in form of legal currency, including gold, silver, 

and other types of money (silver not to exceed one half). 

Possibility of increased use of silver without new legislation.—• 

From article 132 of the fiscal code it appears that special legislation 

would be necessary for the issuance of additional silver coinage, 

which would be subject as well to the provisions of the organic act 

of the Bank of the Republic just referred to. 

Attitude toward silver.—In 1932 it was reported that certain Colombian senators favored the increased use of silver in the form 

of silver certificates. It is believed however, that the proposal is 

not viewed with favor by the authorities and that no material increases in the monetary use of silver is contemplated so long as no 

extraordinary demand for inflation of the currency arises. Thus, 

referring to the issuance of silver coins and certificates mentioned 

below under " Present employment of silver", the Ninth Annual 

Report of the Bank of the Republic for 1931-32 stated: 

The serious situation in which the Government found itself on account of 

the depression led, no doubt, the board (of the bank) to approve this measure, 

which constituted a valuable fiscal expedient under such difficult conditions, 

although it was not without serious objection in relation to the currency 

circulation of the country. 

As a matter of fact, in my previous report I addressed attention to the excessive volume of fractional coinage in relation to the amount of banknotes 

in circulation, comparing it with the policy followed by other countries in 

this respect; which excess has been aggravated by this new issue and by the 

continued decline in the volume of notes in circulation. 

It is true that the silver certificates issued by the bank as authorized by law 

82 of 1931, amounting to $3,050,000 in circulation on June 30, have helped to 

overcome the difficulty of handling the metal coinage, since they have been 

readily accepted by the public in 1- and 5-peso denominations without detriment to the bank's own notes. But the facility [sic] of circulation accorded 

to this new medium of exchange may prove an incentive to thoughts of further 

use of silver issues, as fiscal expedients, which in course of time may lead 

us to a dangerous state of bimetallism, thereby undermining the foundations 

of our sound monetary system. 

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MONETARY USE OF SILVER IN" 19 3 3 45 

Present employment of silver.—-In 1931, 2,000,000 pesos of new 

silver coins were issued.45 Thereafter, 4,850,000 pesos of silver certificates were put into circulation, but since these were secured completely by silver coins withdrawn from circulation, their issuance 

represented no increase in the monetary use of silver. On October 

31, 1932, money in circulation included 4,600,000 pesos of silver certificates and 6,951,000 pesos of silver coins, or 11,551,000 pesos in all. 

The relative use of silver and other forms of money may be seen from 

the following statement of circulation which applies to June 30, 1932: 

Pesos 

Goldi coin 6, 340, 000 

Gold bullion 2,443,000 

Silver coin and certificates 11, 551,000 

Nickel coin 2, 000,000 

Paper money 27,182,000 

Total 49, 516, 000 

Since some of the gold is held in the reserves of the Bank of the 

Republic, the net figure representing total money in circulation 

becomes 40,748,000 pesos. 

COSTA RICA 

The monetary unit is the colon, divided into 100 centimos. The 

colon has a par value of approximately $0.25. 

Present legal provisions.—Under the provisions of a law of July 

10,1923, the 50- and 25-centimo silver coins then in circulation were 

called in and restamped. In other words, their face value was 

doubled to bring them into relation with the new value of the colon, 

which in 1922 had been fixed by law at 25 cents United States currency. The following is the text of the above decree and that of 

January 19, 1924: 

DECREE NO. 93, OF JULY 10, 1923 

Article 1. The Banco Internacional de Costa Rica in accordance with clause 

(a) of article 5 of Decree No. 4, of May 17, 1922, shall credit to the account 

of the Government the sum of 1,472,242 colones, the equivalent of double the 

face value of the minted silver which it received from the administration 

of the revenues for disposal for account of the Government in accordance 

with said law. 

Article 2. The Banco Internacional shall restamp this minted silver at double 

its original value, and shall retire from circulation an amount in bills which 

shall be equal in value to that represented by the silver placed in circulation 

in accordance with this law. 

Article 3. The silver coins of the country at present in circulation shall be 

received in payment of taxes and duties at double their face value until 3 

months after the date of this law, and after this period shall be redeemed 

for their intrinsic value in relation with bills, computed on an exchange basis 

of 4 colones to $1, as fixed by the Caja de Conversion. 

Article 4. The silver coins received by Government offices in accordance 

with the above article may be restamped as before indicated, or exported to 

be sold, as the needs of circulation may demand. 

Article 5. The restamped silver shall be legal currency and shall be received 

without restriction of any nature by the Government in payment of duties and 

taxes, but the public is not obliged to receive it in amounts in excess of 50 

colones. 

« Decree No. 1889, Oct. 23, 1931. 

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46 MONETARY USE OF SILVER IN 19 3 3 

DECREE OF JANUARY 10, 1924 

Considering: 

1. That law no. 93, of July 10, 1923, provides that the Banco Internacional 

de Costa Rica shall restamp and place in circulation at double their face values 

the silver coins of the country which were delivered to it by the Administracion 

Principal de Rentas; 

2. That although the restamping of the 25- and 50-centimo pieces is being 

accomplished without serious difficulties, the same would not occur with the 

5- and 10-centimo coins, owing to their flimsy and worn condition; 

3. That a silver coin 0.650 fine and weighing 3.45 grams would be equal to 

one half of the value of a coin which now circulates with a value of 50 centimos, 

and that, therefore, the minting of such coin would respond to the end pursued 

by Decree No. 93, and would be the most convenient form of obviating the 

difficulties in complying with the laws that are presenting themselves, and at 

the same time would result in providing a public commodity; 

It is decreed: 

The Banco Internacional de Costa Rica shall proceed to melt all the coin 

received, and also the defective 25- and 50-centimo pieces and the not restamped 

silver disks, and to mint with this material 25-centimo coins 0.650 fine and 

weighing 3.45 grams. 

Under a law published in La Gaceta of November 7, 1931, the 

Banco Internacional de Costa Rica was authorized to issue 1,493,713 

colones worth of silver certificates, this being the total value of the 

restamped coins authorized by the law of 1923. The bank may put 

in circulation silver certificates to the amount of silver held in its 

vaults. Their circulation depends upon the currency needs of the 

moment. By a further provision of the 1931 law, the issuance of 

119,013 colones worth of silver coins was authorized, without the 

necessity of withdrawing from circulation a corresponding amount 

of silver certificates. 

Possibility of increased use of silver without new legislation.—On 

this point no information, other than that given above, is at hand. 

Attitude toward silver.—No measures affecting the monetary use 

of silver are before the Congress and such legislation is unlikely for 

the near future. The attitude of the officials in the Banco Internacional is to limit the use of silver to that already outstanding. 

The exchange value of the colon is maintained by limitation of 

the circulating medium and it is, therefore, believed by those in 

authority that the issuance of additional silver currency would be 

inadvisable. 

Present employment of silver.—The circulation of silver on February 22, 1933, was as follows : 

Of these, there were in circulation 929,693 colones, while 564,020 

colones were held in the Banco Internacional de Costa Rica. 

Of the 1,400,000 colones of silver certificates issued, 835,980 colones 

were held by the Banco Internacional of Costa Rica and 564,020 were 

in circulation. It will be noted that the amount of silver certificates 

in circulation equals the amount of silver coins in the vaults of the 

Banco Internacional de Costa Rica. 

There is no restriction on the movement of silver into or out of 

the country. 

1 colon 

50 centimos. 

25 centimos. 

Colones 

489, 924 

536, 962 

466, 827 

Total. 1, 493, 713 

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MONETARY USE OF SILVER IN" 19 3 3 47 

CUBA 

The monetary unit is the peso, divided into 100 centavos. The 

par value of the peso is approximately $1. 

Present legal provisions.—Cuba's silver coinage is governed by the 

law of October 29, 1914. This law provides for 1-peso, and 40-, 20-, 

and 10-centavo silver coins, the total issue of which may not exceed 

12,000,000 pesos. The fineness of the silver coins is fixed at 0.900, 

and their gross weight as follows: 1 peso, 26.7295 grams; 40 centavos, 

10 grams; 20 centavos, 5 grams; and 10 centavos, 2.5 grams. 

Silver coins are full legal tender in payments of not more than 10 

pesos, and legal tender to the extent of 8 percent for payments in 

excess of 10 pesos. In November 1932 it was reported that the Government was accepting silver coins in the payment of all taxes to the 

extent of one third. This was being done as a temporary and unofficial arrangement to ameliorate the disparity which had developed 

in the relative values of the paper money (United States currency is 

the sole paper money in Cuba) and Cuban silver coins. 

Possibility of increased use of silver without new- legislation.— 

The present use of silver money cannot be extended without amending the law. The entire $12,000,000 of silver money authorized has 

been coined and is in circulation. 

Attitude toward silver.—On May 8 the President was reported as 

recommending a bill which would permit the coinage of an additional 6,000,000 pesos in silver, and the issuance thereagainst of an 

equal amount of silver certificates. The press reported such a bill 

would be readily passed. 

Present employment of silver.—In April 1932 the Government 

called for bids for the minting of 3,550,000 silver pesos and 36,860 

pesos of 25-centavo silver coins. With the completion of that program, Cuban silver coinage is at present outstanding to the full 

extent of the 12,000,000-peso limit set by law. 

The disparity between Cuban silver coins and the paper money 

in circulation was explained by the fear that the Government might 

resort to inflation, and also by the fact that Cuba's position on 

international account had tended to draw out of Cuba large sums of 

paper money, thus making the silver currency in circulation relatively redundant. The silver money first went to a discount early 

in 1932. The maximum discount was about 5 percent. In November 1932 the discount was reported as fluctuating between 1% and 

2y2 percent. 

CYPRUS 

The monetary unit is the British sovereign, divided into 180 

piasters. The sovereign is worth approximately $4.8666. 

Present legal provisions.—Silver coinage in Cyprus is governed by 

the Cyprus coinage order of 1900, as published in the Cyprus Gazette 

of February 6, 1901. It went into effect January 1, 1901. 

The order provides for silver coins, 0.925 fine, of four denominations : 18, 9, 41/2, and 3 piasters, having gross weights of 174.54, 87.27, 

43.63, and 29.09 grains, respectively. These coins are legal tender 

up to 540 piasters. (In addition to the coins mentioned, commemorative 45-piaster silver pieces were issued in 1927.) 

The currency order empowers the High Commissioner to procure, 

by proclamation, the issuance at any time of coins of a value not 

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48 MONETARY USE OF SILVER IN 19 3 3 

exceeding 45 piasters, whether of silver or other metal or metals. 

British silver coins are not legal tender in Cyprus. 

Possibility of increased use of silver without new legislation.—In 

view of the powers given to the High Commissioner by the currency 

order of 1900, it would be possible to increase the silver coinage at 

any time upon publication of a proclamation. 

Attitude toward silver.—No legislation is contemplated which 

would affect the monetary use of silver in Cyprus, and the Government does not take any special attitude toward the employment of 

silver, as opposed to that of gold, in the currency system, beyond 

fixing a limit of legal tender. 

Present employment of silver.—The position of silver in the monetary system of Cyprus is shown by the following statement of the 

estimated circulation in Cyprus of sovereigns and Cyprus currency, 

which applies to the end of 1931: 

Gold46 £60,000 

Silver 147,500 

Government notes 426, 207 

Total 633,707 

CZECHOSLOVAKIA 

The monetary unit is the koruna (crown) of 100 hellers. The 

par value of the koruna is approximately $0.0296. 

Present legal provisions.—The law of June 9, 1932, effective June 

27, lists three silver coins: The 5-, 10-, and 20-koruna pieces. Only 

the first two mentioned are as yet in circulation. The 5-koruna coins 

are 0,500 fine and the 10-koruna coins, 0.700 fine. Their respective 

gross weights are 7 and 10 grams. The issue of subsidiary coin of 

all kinds (silver and other metals) is limited to a maximum of 

1,200,000,000 koruny. The issue must conform to actual requirements. To this end the treasury must keep all forms of money 

readily interchangeable, redeeming the fractional money in other 

forms of currency whenever the national bank finds itself holding 

over 10 percent of the outstanding issue of any given denomination 

of coin for a period of 6 months. 

Possibility of increased use of silver without new legislation.—It 

is intended to replace gradually with silver coin the 10- and 20-

koruna notes of the National Bank outstanding (Nov. 1, 1932) in the 

total amount of over 542,400,000 koruny. Apart from this, it is estimated that about 140,000,000 koruny of silver coins might be issued 

within the maximum of 1,200,000,000 koruny fixed by law. The replacement of the small bank notes would require about 8,690,000 fine 

ounces of silver and the remaining 140,000,000 koruny—if issued 

two thirds in the form of 10-koruna pieces and one third in the form 

of 20-koruna pieces—would recjuire about 2,520,000 fine ounces, 

making possible the total additional consumption about 11,210,000 

fine ounces. 

Attitude toward silver.—Inasmuch as the 1932 law entails expansion of the monetary use of silver, it is believed unlikely that there 

will be any further increase in the near future. The general attitude 

46 This estimate is purely nominal. 

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MONETARY USE OF SILVER IN" 19 3 3 49 

seems to be against any further increase in the use of silver, particularly such as would involve any sort of remonetization. 

Present employment of silver.—At the end of 1931 the National 

Bank of Czechoslovakia held 1,407 koruny in silver coin and 6,444,-

322 koruny in silver bullion, its note circulation on that date being 

approximately 7,679,000,000 koruny. 

DANZIG, FREE CITY OF 

The monetary unit is the gulden, divided into 100 pfennige. 

The gulden has a par value of approximately $0.1947. 

Present legal provisions.—The gulden, equal to one twenty-fifth 

of the pound sterling, was made Danzig's monetary unit by the law 

of October 20, 1923. The coinage law of November 20, 1923, established four silver coins, which have since been demonetized. The 

silver coins were made legal tender to not over 60 gulden. 

The old silver coins of Danzig, namely, the 1-, 2-, and 5-gulden 

pieces, all 0.750 fine, were demonetized in March 1932, and on June 

30, 1932, they ceased to be accepted by the Government offices. Commencing in January 1932 new coins were put into circulation to 

replace those withdrawn. Of the new coins, only two are silver, 

the denominations being 2- and 5-gulden, weighing 10 and 15 grams 

gross, respectively. Both are 0.500 fine. The total issue of fractional coins is limited to 10,000,000 gulden, of which 2,500,000 

gulden may be 2-gulden silver coins and 4,300,000 5-gulden silver 

coins. 

Possibility of increased use of silver without new legislation.— 

Since the maximum circulation of silver coins has been fixed, issuance of silver beyond the limits mentioned would require special 

legislation. 

Attitude toward silver.—Recent changes in the coinage law indicate that the Government is content to limit the use of silver to 

2- and 5-gulden coins. 

Present employment of silver.—The limits of silver coinage are 

set forth under " Present legal provisions " above. At the end of 

1931 the stock of silver coin was reported as 10,000,000 gulden, of 

which 3,730,917 gulden were held by the Bank of Danzig and the 

rest were in circulation. 

Danzig's new coins are manufactured by the Prussian State 

Mint. 

DENMARK 

The monetary unit is the krone (crown), divided into 100 ore. 

The par value of the krone is approximately $0,268. 

Present legal provisions.—The existing Danish currency law of 

February 15, 1924, makes no provision for the monetary use of 

silver. 

Possibility of increased use of silver without new legislation.— 

In view of the above, silver money could not be issued without special legislation. 

Attitude toward silver.—There is no sentiment in favor of the 

employment of silver currency in Denmark. It is held that the 

existing coinage satisfies the public's requirements just as well as 

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50 MONETARY USE OF SILVER IN 19 3 3 

silver would, and there is, therefore, no justification in minting or 

using silver. 

Present employment of silver.—The Bank of Denmark's holdings 

of silver totaled 5,710,000 kroner at the end of 1931, compared with 

gold holdings of 144,268,000 kroner and a note issue of 346,489,000 

kroner. 

DOMINICAN REPUBLIC 

The monetary unit is the United States dollar. 

Present legal provisions.—The United States gold dollar was 

adopted as the standard of value in 1897. A decree of June 2, 1900, 

made United States currency legal tender in the Dominican Repute 

lie, in the proportion of 70 parts gold and 30 parts silver. Dominican silver coins were made equivalent to American, at the ratio 

of 100 centavos equals 20 cents. The " 30 parts silver " may be made 

up of nickel and copper to the extent of one sixth. 

American paper currency of all kinds, silver certificates included, 

is accepted in any amount for payments to the Government or individuals. 

Movements of silver are unrestricted. 

Present employment of silver.—No Dominican silver has been 

coined for many years, possibly not since 1897. 

Along the border of Haiti, coins and notes of that country circulate in the Dominican Republic. 

There are no available statistics that show the extent of the use 

of silver. At the end of 1929 Dominican banks held $182,738 in 

"American silver", $101,159 in "Dominican silver", $129,260 in 

American gold, and $1,419,210 in American notes. It is assumed 

that the two items of " silver " really include minor coin as well. 

The Bureau of the Mint reports that, at the end of 1931, banks and 

the Dominican Republic Treasury held silver to a face value of 

$282,000 United States currency. 

ECUADOR 

The monetary unit is the sucre, divided into 100 centavos. The 

sucre has a par value of approximately $0.20. 

Present legal provisions.—The monetary law of March 4, 1927, 

provides for silver coins as follows:47 

Denomination Fineness 

Gross 

weight 

in grams 

2 sucres _ 0.720 

.720 

.720 

10.0 

5.0 

2.5 

1 sucre -

0.720 

.720 

.720 

10.0 

5.0 

Yi sucre. - - 2.5 

0.720 

.720 

.720 

10.0 

5.0 

2.5 

0.720 

.720 

.720 

10.0 

5.0 

2.5 

By the terms of article 19 of the 1927 law, the central bank was 

authorized to apply to the Minister of Finance whenever it considered new issues of silver money advisable, and the Minister of 

47 For the text of the law, see Annual Report of the Director of the U.S. Mint, 1927, 

pp. 140-141. This law was affirmed on Oct. 29, 1928, by the Constitutional Government, 

and published June 15, 1932, in the Registro Oficial. 

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Finance was authorized to contract for the coinage of silver money 

as deemed by him to be necessary. Since March 19, 1928, such 

contracts must have the express authorization of the legislature, 

if by their execution the amount of silver and minor coins held by 

the Minister of Finance shall be caused to exceed 500,000 sucres. 

Silver coins are full legal tender for all payments to the Government but only to the amount of 10 sucres for private payments. 

Old issues of silver coins continue to be legal tender at their face 

value to the amount of 10 sucres. 

The 1927 law repealed all earlier currency laws. 

On May 23, 1930, the Registro Oficial carried the text of a presidential decree of May 17, reading in part as follows: 

Considering that the constantly increasing retirement of the 1- and 2;-sucre 

notes of the former banks of issue is causing a growing shortage of subsidiary 

currency which is prejudicial to commercial transactions, as shown by reports 

from banks and treasurer's ojiices received by the treasury administration; 

that the quantities which the supreme decree of September 5, 1927, provided * * * were not all coined, and there is consequently still a balance 

to be minted; (the President) decrees: 

ARTICLE 1. The Central Bank of Ecuador, as agent of the Government, 

shall cause to be minted the rest of the silver ordered in the supreme decree 

of September 5, 1927, making a contract for this purpose with the * * * 

Philadelphia Mint * * * for the coinage of additional amounts not in 

excess of the uncoined balances, namely: 

Sucres 

100,000 2-sucre pieces 200', 000 

400,000 1-sucre pieces 400, 000 

155,000 y2-sucre pieces 77, 537 

Total, 655,060 pieces 677,530 

ART. 2. For the additional coinage mentioned, the Central Bank shall use 

the 73,485.14 ounces of silver deposited in the Philadelphia Mint, and also 

any part necessary of the sum of 20,932 sucres and 90 centavos authorized, 

which the bank is holding for the Government's account and which it shall 

send to the Philadelphia Mint. 

ART. 3. In regard to weight, fineness, diameter, thickness, and other specifications, the coins shall be minted in absolute conformity with the provisions 

of the supreme decree of September 5, 1927 * * *. 

AJIT. 4. The Government shall deposit and keep the new coins in the custody 

of the Central Bank until the needs of commerce require that they be put in 

circulation. 

* * * * * * # 

ART. 7. Executive Decree No. 90, issued April 28 last, dealing with the 

same matter, is amended to this effect. 

There are no restrictions on the movement of silver into or out of 

the country. 

Possibility of increased use of silver without new legislation— 

From the above, it appears that the issuance of silver beyond the 

limits therein stated would require new legislation. 

Attitude toward silver.—No report has been received to indicate 

any prospective legislation affecting the monetary use of silver in 

Ecuador. 

Present employment of silver.—Some old silver coins issued under 

the law of November 4, 1898, are in circulation and are legal tender 

according to the 1927 law, but they are seldom seen. Old coins are 

retired as received by the Government. 

The monetary stock at the end of 1929 was 34,700,000 sucres, of 

which new silver coin accounted for 4,253,000 sucres. The United 

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52 MONETARY USE OF SILVER IN 19 3 3 

States Bureau of the Mint reported that, at the end of 1931, Ecuador's stock of silver and minor coin totaled 7,830,855 sucres, of 

which 4,561,624 sucres were in circulation, and the remainder held 

in banks and the treasury. According to data supplied by the director of the treasury, the silver coinage in circulation on December 

31, 1932, amounted to 5,177,530 sucres. As the Government's figures 

include all silver coins outstanding, the amount is slightly higher 

than that shown in the central bank's statement for all coins in circulation (5,011,520 sucres), which includes only those estimated to 

be in actual circulation. 

EGYPT 

The monetary unit is the Egyptian pound, divided into 100 

piasters. The par value of the Egyptian pound is approximately 

$4.9431. 

Present legal provision.—The laws governing the monetary use of 

silver are: The decree of November 14, 1885; and Law No. 25 of 

1916. 

The 1885 decree limited the issuance of silver to 40 piasters per 

capita. It provided for seven denominations of silver coins, 0.833% 

fine, giving to the finance minister the authority to fix the quantities 

of each category of coin issued within the 40-piaster per capita 

limit. The legal tender of silver money was limited to 200 piasters. 

The 1916 law made certain changes. It reduced the list of silver 

coins to four: The 20-, 10-, 5-, and 2-piaster pieces. It made the 

pound sterling legal tender in Egypt at a rate to be fixed by the 

finance minister, and in a separate article, authorized the latter 

to admit to circulation foreign moneys and fix their legal tender. 

Possibility of increased use of silver without new legislation.— 

Without new legislation the circulation of silver could not be materially increased. The 40-piaster per capita limit, with Egypt's 

present population of about 15,000,000, would permit a silver circulation of 6,000,000 Egyptian pounds. The figures cited below 

indicate no room for expansion within this limit. 

Attitude toward silver.—No legislation is contemplated, which 

would effect the monetary use of silver in Egypt. The Government's attitude toward silver is one of indifference. Since the currency unit is linked to the pound sterling, it is unlikely that any 

change would be made in the coinage without the advice of the 

British Government. 

Present employment of silver.—Silver coins outstanding on December 31, 1932, totaled 4,158,000 Egyptian pounds. The national 

treasury held 2,000,000 Egyptian pounds additional, for use in meeting seasonal demands for small money. The corresponding figures 

for other forms of money outstanding were: Paper currency, 

18,802,000 pounds; nickel coin, 792,000 pounds; bronze coin, 37,000 

pounds. 

(Egyptian currency circulates in the Anglo-Egyptian Sudan, 

which see.) 

ERITREA 

The monetary unit is the Italian lira, divided into 100 centesimi. 

The par value of the lira is approximately $0.0526. 

By royal decree of June 18, 1925, the Italian lira is the only legal 

tender in Eritrea. Special silver coins for the colony were estabDigitized for FRASER 

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MONETARY USE OF SILVER IN" 19 3 3 53 

lished, namely, the 10-lira piece weighing 12 grams, and the 5-lira 

piece weighing 6 grams; both coins 0.835 fine. The rupia, a silver 

coin, is stabilized in value at 8 lire. 

In 1918 the Italian mint struck a special silver Eritrean dollar 

(tallero dTtalia) weighing 28.0668 grams, 0.835 fine. 

ESTONIA 

The monetary unit is the kroon [crown], divided into 100 senti. 

The par value of the kroon is approximately $0.2680. 

Present legal provisions.—The monetary law of May 3,1927, which 

became effective at the beginning of 1928, authorized 1-kroon and 

2-kroon subsidiary silver coins at least 0.500 fine, to be legal tender 

up to 50 krooni. 

Under the present currency law, the total of 1- to 50-centi coins 

must not exceed 3 kroons per capita, and that of 1- and 2-kroon 

pieces must not exceed 6 kroons per capita. For this purpose the 

population as determined in 1922 is used, namely, 1,107,059. ^ 

Possibility of increased use of silver without new legislation.— 

No increase in the monetary use of silver without new legislation 

seems likely in view of what follows below. It is stated, however, 

that approximately 200,000 special 1-kroon silver coins will be struck 

in 1933 to commemorate the Tenth Estonian National Singing Festival. Silver for these 1-kroon coins will be obtained from the surplus left in the treasury from the minting of the 2-kroon pieces in 

1930. The remainder of the 1-kroon issue will very likely be minted 

of aluminum and bronze. 

Attitude toward silver.—Owing to the fact that the 2-kroon piece 

has been readily counterfeited, the Government recently initiated 

steps to amend the currency law so as to allow the replacement of 

the present silver coins with pieces of baser metal. It is proposed 

to authorize the minting of 1- and 2-kroon coins " of silver of a fineness of at least five hundred thousandths, or else of some other 

metal." The Government in 1932 requested the Bank of Estonia to 

secure the League of Nation's approval of the proposed amendment. 

Such approval was received late in December, although the league 

pointed out that Estonia was under no obligation to seek such 

approval. 

On March 2, 1933, the finance committee of the Riigikogu (State 

Assembly) approved the above proposal, and ratification by the 

assembly in plenary session was expected to follow very shortly. 

It was stated by the Ministry of Economic Affairs in March 1933, 

that the 2-kroon silver pieces of the 1930 issue now in circulation 

will not be withdrawn under the amended currency law, but will 

continue to remain legal tender currency. 

Present employment of silver.—The 2-kroon piece, 0.500 fine, is 

the only silver coin in circulation. On May 1, 1932, there were in 

circulation 2,018,368 krooni in silver. This represents approximately 

195,000 fine ounces of silver. 

The proposed change in the currency law would affect paragraphs 

4, 5, and 8, of the 1927 law. It would give the treasury the right 

to decide whether to use silver, and, if so, what coins to mint of 

silver. 

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54 MONETARY USE OF SILVER IN 19 3 3 

ETHIOPIA 

The monetary unit is the Maria Theresa dollar, with various 

fractional parts as described below. The Maria Theresa dollar, 

being silver, has no fixed par value in terms of gold. 

Present legal provisions.—There appears to be no formal monetarylaw. Currency is issued according to the decision of the Government. In March 1931 the Government levied an excise tax on certain articles, both imported and domestic, with the object of raising 

funds to take over the Bank of Abyssinia and establish a goldstandard currency known as the Ethiopian gold pound. The unit 

was to have the same par value as the pound sterling, and to be 

divided into 10 silver dollars, in turn divided into 20 besas. The 

bank was taken over by the Government in October 1931 but whether 

any other progress has been made in issuing the new currency is not 

known. 

The principal medium of exchange is the Maria Theresa silver 

dollar, a silver trade coin which is minted in Vienna and circulates 

in various places in the Arabian peninsula and northern Africa.48 

The Maria Theresa dollar weighs 28.0668 grams 0.833i/3 fine. It is 

the only currencj^ generally accepted throughout Ethiopia. 

According to reports from Minister Resident Addison B. Southard, Addis Ababa, dated February 7, 1931, and January 24, 1933, the 

fractional silver coins in circulation include half and quarter dollars, 

and the T Vdolla r coin called timoon, guerche, or mehalek. According to the Bureau of the Mint, however, the coin is equal to 

one twentieth of a Maria Theresa dollar.49 The mint lists also the 

now rarely seen Menelik dollar, issued in 1897, and gives the following details of the silver coinage: 

Gross 

Denomination Fineness weight in 

grams 

Maria Theresa dollar (thaler) 0.833H 

.835 

28.0668 

Menelik dollar (thaler) 

0.833H 

.835 28. 0750 

Half [menelikl dollar (alad) .835 14. 0375 

Quarter [menelik] dollar (roul) .835 7.0188 

Twentieth [menelik] dollar (timoon or piaster) ! 

! 

.835 1. 4038 

Possibility of increased use of silver without new legislation.—The 

Emperor has the power to order changes in the currency system at 

will. 

Attitude toward silver.—Paper notes in the values of 5, 10, 50,100, 

500, and 1,000 Maria Theresa dollars, are issued by the Bank of 

Ethiopia, secured by reserve of silver dollars to the full value of 

notes outstanding. These paper notes are fairly well accepted in 

the main towns, but are usually avoided by the peasants and less 

literate masses of the population, who prefer the hard metal coin. 

According to American Minister Southard, in his report of January 24, 1933, the Financial Adviser's program of currency reform 

48 The Maria Theresa dollars all bear the date 1780, regardless of the date of issuance. 

49 See Monetary Units and Coinage Systems of the Principal Countries of the World, 

1929, p. 19. Tate's Modern Cambist states that the timoon is nominally worth one 

twentieth of a dollar, but actually circulates at a higher value. 

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MONETARY USE OF SILVER IN 19 3 3 55 

contemplates first the establishment of a decimal system of fractional coins to take the place of the present fractional units. He 

has proposed the minting and circulation of nickel coins in the 

values of one twentieth, one tenth, one fifth, and one half of a silver 

dollar. This project has been approved and the Government has 

purchased in London £50,000 worth of nickel sheets from which the 

coins are to be locally stamped, and the first shipment of this nickel 

is reported en route. He anticipates that the new nickel' coins will 

be ready to put into circulation before summer. With that end in 

view the Government has begun to retire the present fractional coins. 

Other items in the Financial Adviser's program for Ethiopian 

currency reform include paper notes of $1 and $2, and an eventual 

gold reserve upon which to base a national gold-standard currency. 

These two items have been approved by the Emperor in theory, 

but not yet in fact. There is some doubt as to whether the peasants 

will accept $1 and $2 paper notes in place of the Maria Theresa dollar coins, for they are not accustomed to paper money. The gold 

standard move must await the accumulation of gold reserves, an 

accumulation which may require several years. 

Present employment of silver.—Merchants consulted in 1931 estimated silver and other metal currency in circulation as between 

27,000,000 and 40,000,000 Maria Theresa dollars. A report to the 

United States Bureau of the Mint gave the silver stock at the end 

of 1931 as follows: In treasury, 6,000,000 Maria Theresa dollars; in 

banks, 4,000,000; in circulation, 35,000,000; total, 45,000,000. Notes 

of the Bank of Abyssinia in circulation at that date amounted to 

about 1,740,000 Maria Theresa dollars. Foreign money in circulation 

was negligible in quantity. 

While there is no currency law and hence no legal-tender limit, in 

practice the subsidiary coins are not accepted in amounts exceeding 

$10 . _ _ ' 

The Ethiopian Government has no formal or fixed policy as regards the restriction of the importation and exportation of gold and 

silver. As gold is subject to an export tax it must be declared at 

the customs when shipped. The Ethiopian Government occasionally restricts the importation or exportation of Maria Theresa dollars for short periods, usually for the purpose of influencing exchange when it has foreign remittances to make or receive, but no 

printed decrees or laws are made available. Often the restriction 

is accomplished by oral instruction of the Emperor to the officials 

immediately concerned. At present both imports and exports of 

Maria Theresa dollars are prohibited. 

Maria Theresa dollars struck by the Vienna Mint in 1931 totaled 

1,266,600. 

FALKLAND ISLANDS 

The monetary unit is the pound sterling, divided into 20 shillings 

of 12 pence each. The pound sterling has a par value of approximately $4.8666. 

Present legal provisions.—British currency is used in the Falkland 

Islands. (See United Kingdom.) 

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56 MONETARY USE OF SILVER IN 19 3 3 

FIJI ISLANDS 

The monetary unit is the pound sterling, divided into 20 shillings 

of 12 pence each. The par value of the pound sterling is approximately $4.866'6. 

Present legal provisions.—Fiji's currency is regulated by Fiji 

Ordinance No. 9 of 1913, as amended by Ordinance No. 2 of 1917, 

No. 19 of 1918, No. 23 of 1920, No. 9 of 1921, and No. 1 of 1922. 

Both British and Australian silver coins circulate in the Fiji 

Islands. 

Proclamation no. 9, of February 25, 1931, prohibited the importation of silver coin in amounts exceeding £2, except under license. 

Under present regulations the exportation of gold or silver coins or 

bullion is controlled by the Government of Fiji, and can be done 

only under license issued by the Governor. The importation of 

foreign subsidiary coins is permitted. 

Possibility of inm1 eased use of silver without new legislation.— 

Silver coins are constantly brought in by travelers, and are periodically exported. 

Attitude toward silver.—The natives and resident British Indians 

seem to prefer silver to paper money. The half-crown piece is not 

popular and is not in general circulation. 

Present employment of silver.—In 1930 silver coin in the islands 

was estimated at £76,469, of which about £51,469 was held in the 

banks. 

FINLAND 

The monetary unit is the markka, divided into 100 pennia. The 

markka has a par value of approximately $0.0252. 

Present legal provisions.—The present monetary law, which dates 

from December 21,1925, makes no provision for silver coinage. 

Possibility of increased use of silver without new legislation.— 

None. 

Attitude toward silver.—When the Finnish Republic came into being in 1919 the Bank of Finland had on hand silver coins to the 

amount of 535,600 finnmarks and silver bullion valued at 25,000 

finnmarks. That silver has since been sold to silversmiths within the 

country, sales having been completed in 1926. Even when the law 

permitted the circulation of silver, that is from 1919 to 1925,50 none 

was circulated by the Government. There is, therefore, no indication that the Government is inclined to use silver for monetary purposes, and no legislation to that end is contemplated. The authorities are said to consider that there is no need for the employment of 

silver and that the use of silver would involve an unnecessary 

expense. 

Present employment of silver.—The Bank of Finland at the end 

of 1931 held silver to a total of 44,300,000 finnmarks. 

FRANCE 

The monetary unit is the French franc, divided into 100 centimes. 

The franc has a par value of approximately $0.0392. 

Present legal provisions.—Article 7 of the French monetary or 

stabilization law of June 25, 1928, provided the following: 

50 During this period the coinage was regulated by laws of Aug. 9, 1877, of the Grand 

Duchy of Finland. 

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MONETARY USE OF SILVER IN 19 3 3 57 

Iii replacement of the Bank of France notes of 5, 10, and 20 francs, which 

will be withdrawn from circulation before December 31, 1932, the date from 

which they will cease to have legal tender, there will be fabricated at the 

administration of the mint, for the account of the state, silver pieces having 

a nominal value of 10 and of 20 francs, of a fineness of 0.680 for an amount the 

total of which cannot exceed 3,000,000,000 francs. The weight of the silver 

money is fixed as follows: 10 grams per 10-franc piece; 20 grams per 20-franc 

piece. 

Article 10 of the appropriations law promulgated December 31, 

1932, prolonged until the end of 1933 the date for the completion of 

the program set forth above. 

According to the monetary law of June 24, 1928, the old French 

silver coins were demonetized. The silver coins mentioned in the 

present law are to be legal tender up to 250 francs. The gross weight 

of the coins to be issued is 20 grams for the 20-franc piece and 10 

grams for the 10-franc piece. 

Possibility of increased use of silver without new legislation.— 

Under the existing law 3,000,000,000 francs in silver were on March 

27, 1933, issuable without further legislation. 

Attitude toward silver.—Over 1,225,300,000 francs of 10-franc 

silver pieces and 64,680,000 francs of 20-franc silver pieces had been 

minted by December 15, 1932, both being put into circulation commencing March 27, 1933. There was considerable demand that the 

Government mint 5-franc silver coins, but early in February 1933 

it was decided to issue nickel 5-franc pieces, rather than silver 

(art. 68 of the March " provisional twelfth " law). 

A bill known as Chamber Document No. 991 and dated December 

6, 1932, was introduced to authorize the striking of 5-franc silver 

pieces and for other purposes. Although the bill failed to pass in 

its original form, but was enacted in amended form on December 31, 

1932 (as referred to above), the expose des motifs which accompanied it is of interest in connection with the official attitude toward 

silver. The expose referred to the desire for clean and durable 

money (instead of the small notes at present circulating) and, in 

asking for the postponement of the date for compliance with the 

1928 law (i.e., the provision cited above), the Government envisaged 

placing the coins in circulation prior to the date fixed for total 

withdrawal of the small paper notes. This operation, it was stated, 

would improve the situation of the Bank of France. 

In urging the striking of a 5-franc coin of silver, the expose recommended it as a means of avoiding rising prices because of the absence 

of a coin smaller than the 10-franc piece and larger than the 2-franc 

piece. The expose referred to doubts concerning the opportunity of 

creating a nickel piece, adding that " only the striking of 5-franc 

silver pieces will effect the complete utilization of the silver stock 

held by the treasury which permits the issuance of 3,000,000,000 

francs of silver money. It goes without saying, in fact, that for the 

total of 20-, 10-, and 5-franc pieces, we would not exceed the limit of 

3,000,000,000 provided by the law of 1928 and established in relation 

to the amount of the circulation of small paper notes. In the event 

of the adoption of a 5-franc nickel piece, a part of the silver stock 

of the treasury would remain without employment and could not 

therefore be sold without a very appreciable loss." 

The attitude of those who favored nickel was set forth by M. de 

Ramel, a member of the finance committee, in l'Information of 

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58 monetar y "us e o f silve r i n 19 3 3 58 

March 3, 1933. His contention was that the issuance of nickel coins 

is more profitable to the state. 

Present employment of silver.—French holdings of silver at the 

end of 1931 and 1932 were approximately as shown in the following 

table, the holdings of the Bank of France being in new coin minted 

in accordance with the 1928 law: 

Item i 

End of— 

Item i 

1931 1932 

Held by Bank of France on own account 

Ounces 

20, 623,066 

14,112,119 

32,903,944 

Ounces 

29, 553,971 

5,193,994 

31,416,510 

Held by Bank of France on government account 

Ounces 

20, 623,066 

14,112,119 

32,903,944 

Ounces 

29, 553,971 

5,193,994 

Held by government on own account 31,416,510 

Ounces 

20, 623,066 

14,112,119 

32,903,944 

Ounces 

29, 553,971 

5,193,994 

31,416,510 

Total held on government account 

Ounces 

20, 623,066 

14,112,119 

32,903,944 

Ounces 

29, 553,971 

5,193,994 

31,416,510 

Total held on government account 47,016,143 

20, 623,066 

36,610,504 

Total held on Bank of France account 29,553,971 

47,016,143 

20, 623,066 

36,610,504 

29,553,971 

Grand total 

47,016,143 

20, 623,066 

36,610,504 

29,553,971 

Grand total 67,639,209 66,164,475 

1 As used herein, the word "government" means the Administration of Coins and Medals. 

FRENCH COLONIES 

The French coinage system applies to Algeria, Morocco, Tunisia, 

French West Africa, French Equatorial Africa, and the islands of 

Reunion and Comoro, in Africa; to French Guiana and the French 

West Indies (St. Pierre and Miquelon, Martinique, and Guadeloupe) in America; and to the French Establishments of Oceania. 

FRENCH GUIANA 

The monetary unit is the French franc, divided into 100 centimes. The franc has a par value of approximately $0.0392. 

(See France.) 

Present legal provisions.—The French monetary law of June 25, 

1928, applies to French Guiana. 

Possibility of increased use of silver without new legislation.— 

See France. 

Attitude toward silver.—See France. 

Present employment of silver.—No silver is in circulation. The 

United States Bureau of the Mint, however, reports that at the end 

of 1930, the banks and the treasury held silver to a value of $194,000 

United States currency. 

FRENCH INDO-CHINA 

The monetary unit is the piaster, divided into 100 cents. The 

piaster has a par value of 10 French francs, or $0,392. 

Present legal provisions.—According to a decree of July 8, 1895, 

which slightly reduced the weight of the piaster to 27 grams, fractional coins of proportional weights were issued. These coins were 

all 0.900 fine. On April 14, 1898, the fineness of the silver i/5-piaster 

and xVpiaster coins was lowered from 0.900 to 0.835 and, on June 

9, 1921, to 0.680. In this form these two fractional coins are still 

in circulation. A decree of August 12, 1930, states that these coins 

shall continue to be legal tender as determined by the earlier laws, 

but that their fineness, weight, tolerance, and diameter may be 

modified by the Governor General in council. 

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According to a decree of May 31, 1930, published in the French 

Journal Official of June 1, 1930, the piaster has been placed on 

the franc-exchange basis,51 but the 1-piaster silver coins retain their 

unlimited legal-tender quality. A decree of August 12, 1930, published August 18, fixes the fineness of the silver piaster at 0.900 and 

its weight at 20 grams. 

At the end of December 1931, the old 27-gram piaster silver 

pieces were demonetized, and any of them acquired by the Banque 

de l'lndo-Chine since then have been paid for at their value as bullion. The only silver now enjoying legal tender is the new piaster 

coin. 

Possibility of increased use of silver without new legislation.—The 

number of silver coins in circulation could be increased without new 

legislation. 

Attitude toward silver.—The Government shows no inclination to 

put more silver into circulation. It is held that the inhabitants of 

French Indo-China in general prefer paper to silver money, although 

silver bullion is imported for use in making ornaments, etc. Some 

of the bullion is hoarded. 

Present employment of silver.—In February 1933 it was reported 

that there were 3,957,000 of the new piaster coins in circulation. 

The Colony's total stock of the new coins was about 16,000,000 piasters, the difference between that figure and the 3,957,000 in circulation in February 1932 represents coins in the vaults of the Banque 

de l'lndo-Chine. New piasters struck by the French Mint during 

1931 totaled 13,288,273. No information is on hand as to the circulation of fractional silver coins, the last of which were struck in Paris 

in 1930, namely, 5,576,331 twenty-cent pieces and 6,607,520 ten-cent 

pieces. The corresponding figures for 1929 were 643,750 and 5,830,820; 

and for 1928, 794,289 and 1,592,863. 

The figure of 3,957,000 piasters mentioned above compared with 

approximately 1,500,000 in the fall of 1932. The increase in circulation is due to the demand from the Province of Laos, where the 

natives do not trust banks and bury their money in the ground in 

bamboo boxes. It is principally for the latter purpose that they 

demand silver. They used to bury the bank notes in the same way, 

but often found them partly eaten up by ants and other insects, and 

if the numbers were not legible, the notes could not be redeemed. 

The 16,000,000 piasters held in Indo-China represents all of the 

new piaster coins struck in Paris. The coins were sent to IndoChina in May 1932. 

From the beginning of 1929 to the end of 1932 French Indo-China 

is estimated to have sold 48,000,000 fine ounces of demonetized silver. 

FRENCH OCEANIA 

SOCIETY, MARQUESAS, AND OTHER ISLANDS 

The monetary unit is the French franc, divided into 100 centimes. The franc has a par value of approximately $0.0392. 

Present legal provisions.—The French coinage system applies to 

French Oceania. 

51 De facto stabilization was accomplished at the end of 1929. 

172120—33 5 

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FRENCH SOMALILAND 

The monetary unit is the French franc, divided into 100 centimes. The franc has a par value of approximately $0.0392. (See 

France.) 

FRENCH WEST AFRICA AND FRENCH EQUATORIAL AFRICA 

The monetary unit is the French franc, divided into 100 centimes. 

The franc has a par value of approximately $0.0392. 

Present legal provisions.—By decrees of the governors of the two 

colonies, dated June 26, 1928, the currency system of France is in 

effect in these territories. The law contains no provision for the 

circulation of silver. (See France.) 

There is no restriction on the importation of gold or silver coin 

or bullion. 

Attitude toward silver.—See France. 

Present employment of silver.—No silver is in circulation. Formerly, Maria Theresa dollars and Belgian coins circulated in the 

northern part of French Equatorial Africa but they were fast disappearing, according to a report in 1930. 

FRENCH WEST INDIES (GUADELOUPE AND MARTINIQUE) 

The monetary unit is the French franc, divided into 100 centimes. 

The franc has a par value of approximately $0.0392. 

Present legal provisions.—The French monetary law of June 25, 

1928, governs the currency of the French West Indies. 

Possibility of increased use of silver without new legislation» 

See France. 

Attitude toward silver.—According to a 1930 consular report, the 

use of silver or gold is not contemplated in the French West Indies. 

(See France.) 

Present employment of silver.—No silver coins are in circulation 

in the French West Indies. 

GERMANY 

The monetary unit is the reichsmark, divided into 100 reichspfennige. The reichsmark has a par value of approximately 

$0.2382. 

Present legal provisions.—German coinage is governed by the law 

of August 30, 1920, as amended to date. Silver coinage is limited to 

30 reichsmarks per capita, or a maximum of about 1,800,000,000 

reichsmarks, the limit having been raised from 20 reichsmarks in 

July 1931. The coins, 0.500 fine, are issued in denominations of 

1, 2, 3, and 5 reichsmarks and are legal tender in payments not 

exceeding 20 reichsmarks. These coins weigh, respectively, 5, 10, 15, 

and 25 grams. 

Possibility of increased use of silver without new legislation.— 

An appreciable increase in the monetary use of silver by Germany 

is not possible without new legislation. 

Attitude toward silver.—While there is no inclination in Germany 

to use silver as a standard of value, not even in conjunction with 

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gold, in the last 2 years the law has been amended to permit the 

increased use of silver for subsidiary purposes. This measure is 

justified in part by the relief it has afforded to the Eeichsbank's 

reserve ratio, and in part by the revenues which come to the Government in the form of seigniorage on the coinage. Unlike the Eeichsbank's note issue, which must be secured by reserves of gold and 

foreign exchange, the Government-issued coinage requires no reserve. 

Present employment of silver.—Under the 1931 law extending the 

per capita circulation of silver to 30 reichsmarks, a total of about 

1,800,000,000 reichsmarks in silver may be issued.52 The reported 

circulation as of October 31, 1932, was 1,676,000,000, leaving only 

about 124,000,000 reichsmarks as issuable. That these coins will be 

put in circulation is now regarded as unlikely, for the reason that 

the public has objected to the too-plentiful supply of 5-mark coins 

and the withdrawal from circulation of the small-denomination 

paper money. Because of that objection the Government is reported to be considering the substitution of a smaller silver coin for 

the 5-mark piece. At the same time it is preparing for the substitution of nickel coins for the present small-denomination silver coins. 

The following figures apply to silver coins in monetary use: 

E n d of — Millions of reichsinarks 

1924 262.3 

192 8 872. 9 

192 9 915. 5 

193 0 964. 9 

193 1 1,371.6 

1932 (October) 1,676.0 

Of the total stock of money, coins (of all metals) comprised 14 

percent at the end of 1929 and 24 percent at the end of June 1932. 

The budget showed profits derived from silver coinage as 415,-

000,000 reichsmarks in the year ended March 31, 1932. 

According to a report dated January 30, 1933, the German Government holds only negligible amounts of silver at the mints. Silver 

coin held by the Eeichsbank usually varies from about 200,000,000 

reichsmarks at the beginning of the month to 350,000,000 at the end. 

According to the American consulate at Berlin (June 7, 1932) : 

After the war, when the paper mark began to depreciate in value, silver 

coins were hoarded and bought up privlately. The silver thus acquired was 

consumed in industry and otherwise, a relatively small amount coming into 

the Government coffers. The Government still buys demonetized coins of that 

period as bullion, but the amount is negligible. It is stated that none of the 

silver derived from demonetized coins or from present standard coins retired 

from circulation has been sold by the Government, inasmuch as the metal 

has been continuously consumed by the Government. The silver coins shown 

as exports in the German trade statistics represent mintings for Danzig and 

coins collected in local trade across the border. Silver coins then in circulation represented over 116,600,000 fine ounces. 

The most recent development affecting German coinage was an 

amendment to the currency law of August 30, 1924. The amendment, which was published March 22, 1933, adds to the list of coins 

which may be minted of base metals, the 1-mark piece. This is in 

keeping with the intention of the Government, referred to briefly 

above, to withdraw the approximately 256,200,000 silver 1-mark 

pieces outstanding. These silver coins represented about 20,600,000 

52 The population of the Saar region is omitted from this calculation. 

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tine ounces of the metal. Reporting on this subject, Consul Sydney 

B. Redecker wrote from Hamburg on March 15 that a plan under 

advisement called for the complete withdrawal of the existing 

5-mark silver pieces and their replacement by new 5-mark pieces 

the size of the present 3-mark coins; the withdrawal of the current 

3-mark silver pieces; changes in the 2-mark silver pieces; and the 

replacement of the 1-mark silver coins by nickel coins of the same 

denomination. The change would make available for sale by the 

Reichsbank a total of 1,300,000 kilograms of fine silver, produced 

by the melting down of 3-mark and other pieces, and a demand for 

1,700,000 kilograms of nickel for the issuance of the new 1-mark 

coins. The consul further stated: 

The size and weight of the 5-mark pieces are causes of great inconvenience 

to the public and it seems certain that the Government will take cognizance 

of the public's dissatisfaction by withdrawing these coins and issuing other 

more convenient coins in lieu thereof. Various criticisms have been made 

regarding the harmful effects which it was feared would be caused by reducing the size of 5-mark coins to that of the present 3-mark pieces, but, it is 

pointed out in this connection, the smaller 5-mark coins will have the same 

silver content as the existing 5-mark pieces, w^hich are only 0.500 fine. Thus, 

the silver content of the new and smaller piece would be increased to 0.620. 

The huge amount of coin now in circulation in Germany is evident from the 

fact that the total issued by the Reichsbank represents, nominally, almost half 

as much as the note issue. Of the total coins in circulation at the end of 

January (after deducting stocks held by the Reichsbank), 789,900,000 comprise 5-mark silver pieces; 269,600,000, 3-mark silver pieces; 213,600,000, 

2-mark silver pieces; and 256,200,000, 1-mark silver pieces.62* 

GIBRALTAR 

The monetary unit is the pound sterling, divided into 20 shillings of 12 pence each. The par value of the pound sterling is 

approximately $4.8666. 

Present legal provisions.—An order-in-council of August 9, 1898, 

effective October 1 of that year, made the pound sterling the monetary unit in Gibraltar. 

Possibility of increased use of silver without ne%o legislation— 

No special coins are minted for Gibraltar. 

Attitude toward silver.—See United Kingdom and Spain. 

Present employment of silver.—Both British and Spanish currency circulates freely in Gibraltar, Spanish coins forming about 

half of the total. 

GOA 

The monetary unit is the rupia, divided into 16 tangas. The 

rupia has a par value of approximately $0,365. 

The silver currency in circulation consists of 1-rupia coins, British 

Indian rupees, and British Indian fractional coins. Fractonal rupia 

coins have been minted but all are at present held by the Banco 

Nacional Ultramarino. The latter coins are in denominations of 

8, 4, and 2 tangas. Most of the metallic currency in circulation is 

British Indian. The rupia coin has the same weight and fineness 

as the British Indian rupee. 

The rupia is legal tender to any amount; the smaller silver coins 

are limited in legal tender to 1 rupia. 

The note issue is secured by a metallic reserve of at least 33% 

percent. 

B2a See Addendum, p. 141. 

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GREECE 

The monetary unit is the drachma, divided into 100 lepta. The 

drachma has a par value of approximately $0.0130. 

Present legal provisions.—The law provides for subsidiary silver 

coins in denominations of 20 and 10 drachmas, 0.500 fine. All 

Greek coins are legal tender for all private and Government debts, 

with apparently no limit as to amount. Law No. 4546 of April 

16, 1930, abolished the export tax on Greek silver coins. 

Possibility of increased use of silver without new legislation.— 

Additional silver coins could not be minted without the permission of the International Financial Commission, a pre-war body 

established to protect foreign loans made to Greece. 

Attitude toward silver.—No legislation affecting silver coinage 

is contemplated, and there appears to be no interest in silver. There 

is, however, much interest in the stabilization of the currency in 

terms of gold. 

Present employment of silver.—In addition to the new 20- and 

10-drachma coins, some old silver coins, dating from before the 

stabilization of the currency, are in circulation, and enjoy extralegal recognition. On October 31, 1932, Greek silver coinage outstanding was reported as approximately 188,000,000 drachmas. 

Greek coins are minted abroad, and 117,000,000 drachmas in unissued 

silver coin are in the hands of the authorities. 

GREENLAND 

The monetary unit is the Danish krone (crown), divided into 

100 ore. The par value of the krone is approximately $0,268. 

(See Denmark.) 

GUATEMALA 

The monetary unit is the quetzal, divided into 100 centavos. The 

quetzal has a par value of $1. In addition to the fractional coins 

mentioned below, there are copper " peso" and " centavo" coins 

which circulate at 60 pesos per quetzal. 

Present legal provisions.—The law provides for subsidiary silver 

coins in five denominations—1 quetzal, and 50, 25, 10, and 5 centavos, 

0.720 fine and legal tender to 10 quetzales. The central bank may 

legally include silver in its reserves. According to Legislative Decree No. 1379 of 1924 (art. 9), and Legislative Decree No. 1824 of 

May 6, 1932 (art. 7), the silver coinage may not exceed 2,000,000 

quetzales. 

The law governing the central bank requires that institution to 

keep, against its notes and deposit liabilities, certain specified reserves in gold and gold exchange. One thirtieth of these reserves 

(40 percent against notes, 25 percent against deposits for 30 days 

or less, and 100 percent against special deposits) may be composed 

of silver. 

Possibility of increased use of silver without new legislation.— 

There is no likelihood that additional silver will be required, since 

the Government contemplates demonetizing certain coins. 

Attitude toward silver.—The most popular coin is the quarterquetzal. The half-quetzal and one-quetzal silver coins have proven 

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unpopular, and the Government expects to demonetize them together 

with certain old silver coins still used in Oriente and Peten. Some 

of the quarter-quetzales also may be withdrawn from circulation. 

On the other hand, a small additional supply of 5- and 10-centavo 

pieces will probably be required. 

No legislation involving a net increase in the employment of silver 

as currency is contemplated. 

Present employment of silver.—The silver coins expected to be 

withdrawn include 10,000 quetzales and 400,000 half-quetzales. Old 

silver in circulation is estimated at 50,000 " realitos " plus a few old 

silver pesos. The present circulation of quarter-quetzales is estimated at 3,960,000 pieces. The latest complete estimate of the circulation of all silver coins is 1,512,445 quetzales, as of the end of 

1930. Of that sum, the central bank held 305,442; other institutions, 

14,237; and the general public, the remainder. 

HAITI 

The monetary unit is the gourde, divided into 100 cents. The 

gourde has a par value of $0.20. 

Present legal provisions.—The present parity of the gourde was 

established by a law of August 26, 1913. The following table shows 

the coins that are provided by the law. 

Denomination Fineness 

Gross 

weight Denomination Fineness 

Gross 

weight 

1 gourde __ 0.835 

.835 

.835 

Grams 

25.0 

12.5 

5.0 

10 cents 0.835 

.835 

Grams 

2.5 

SO cents 1.0 

0.835 

.835 

.835 

Grams 

25.0 

12.5 

5.0 

5 cents 

0.835 

.835 

Grams 

2.5 

1.0 

20 cents 

0.835 

.835 

.835 

Grams 

25.0 

12.5 

5.0 

0.835 

.835 

Grams 

2.5 

1.0 

to a considerable extent. The Bureau of the Mint placed Haiti's 

and hence circulates freely. 

Present employment of silver.—Haitian silver coins are not in general circulation. United States silver coins, however, do circulate 

to a considerable extent. The Bureau of the Mint placed Haiti's 

stock of silver in the banks and treasury at $17,000, United States 

currency, as of the end of 1931. 

HEDJAZ, NEJD, AND DEPENDENCIES 

The monetary unit is the Saoudi ryal, theoretically divided into 

11 qarsh miri or 22 qarsh darij. The subsidiary silver coins, however, are called % and ryal. The Saoudi ryal theoretically has 

a par value of approximately $0.4867. 

Present legal provisions.—There is no formal currency law in this 

area. On January 23, 1928, the Saoudi ryal was made the monetary 

unit. The Government has frequently announced in the newspaper 

Um al Kura that the public must accept the silver 1, and % 

Saoudi ryal at the fixed rate of 10 ryals per British gold sovereign. 

But, despite the Government's wishes, that valuation does not prevail, and the silver coins fluctuate daily. At the end of 1932 the 

value of these coins on local markets was at the rate of 20 ryals per 

sovereign. Indeed, the Government itself does not accept ryals at 

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the proclaimed rate, and only the scarcity of media of exchange keeps 

their value as high as it is. The Government prohibits the importation of Maria Theresa dollars. 

Possibility of increased use of silver without new legislation.— 

There is no restriction upon the issuance of silver coins. 

Attitude toward silver\—There are no prospects of legislation 

affecting the monetary use of silver in the Saoudian Arabian Kingdom. It is unlikely that silver will be displaced by other forms of 

money at any time in the near future. 

Present employment of silver.—The Saoudi ryal and the fractional 

silver coins are 0.830 fine, and have a gross weight of approximately 

24.05 grams per ryal. They are full legal tender. Their circulation 

in May 1932 amounted to 1,500,000 ryals, divided as follows: Ryal 

coins,'1,200,000; half-ryals, 300,000; quarter-ryals, 600,000. These 

coins circulate only in the Hedjaz. In Nejd the Maria Theresa 

dollars still circulate. 

HONDURAS 

The monetary unit is the lempira, divided into 100 centavos. 

United States currency is used in Northern Honduras. The par 

value of the lempira is $0.50. 

Present legal provisions.—By Decree No. 102 of April 3, 1926, as 

amended by Decree No. 114, dated March 9, 1931, published in an 

official pamphlet entitled Leyes que Regulan la Conversion Monetaria, three silver subsidiary coins are provided. These coins, all 

0.900 fine, are in denominations of 100, 50, and 20 centavos, weighing 

12.5, 6.25, and 2.5 grams, respectively. 

The 20-centavo silver coin is legal tender up to 5 percent in any 

one payment, unless otherwise agreed. No maximum limit is specified as to the legal-tender properties of silver or other money 50 

centavos and above in denomination. 

The law specifies that the coins must be guaranteed by a reserve of 

at least 50 percent in gold. 

On April 28, 1931, the President of Honduras, in accordance with 

the terms of Decree No. 114, issued currency regulations which, 

among other things, provided (art. 6) that " the minting of silver 

and minor money may not exceed 1,500,000 lempiras excepting as 

provided in articles 7 and 8 of these regulations. Any increase in the 

coinage will require the approval of the monetary commission mentioned (in the currency law)." 

Article 7 of the regulations states that " new silver money may be 

coined and issued only in exchange for gold money or American 

paper money in accordance with article 4 of Legislative Decree No. 

169 of March 28, 1930, as modified by Decree No. 114 * * *." 

Article 9 states: " The foregoing restrictions are not applicable in 

case of recoinage, whereby there may be minted and issued whatever 

quantity of silver, copper, and nickel money may be necessary, * * *." It is further provided that the amount of such 

coins shall not exceed in face value the amount of the coins withdrawn. 

Possibility of increased use of silver without new legislation.— 

Apart from recoinage, the issuance of silver is restricted to 1,500,000 

lempiras, excepting in the case of recoinage or in exchange for gold 

money. 

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Attitude toward silver.—It is the purpose of the authorities to 

keep the silver currency redeemable in gold. The necessity of maintaining a reserve of at least 50 percent in gold places an automatic 

limit upon the issuance of silver. It is intended to issue 800,000 

lempiras more of subsidiary coin, eventually bringing the total of 

silver and nickel pieces to 3,000,000 lempiras. It is unlikely that any 

additional silver will be issued. 

So far, the various old silver coins which have been retired have 

been the sole source of the silver used for the new coinage, and the 

monetary commission charged with the issuance of the new money 

does not contemplate the use of any other silver. 

Present employment of silver.—With the exception of United 

States currency, which circulates as legal tender in northern Honduras,53 the three silver coins mentioned above replace the old Honduran peso and sol and other Central American subsidiary coins 

previously used in Honduras. 

At the end of 1932 the amount of silver coins in circulation was 

approximately as shown in the following statement: 

Lempiras 

1 lempira 750,000 

50 centavos 800, 000 

20 centavos 350, 000 

Total 1, 900', 000 

The only other lempira coins issued were some 300,000 lempiras of 

nickel pieces, no gold or copper having been minted under the new 

law. 

HONG KONG 

The unit of currency is the Hong Kong (British) dollar, divided 

into 100 cents. The Hong Kong dollar, being on the silver standard, 

has no fixed parity in terms of gold. 

Present legal provisions.

54—On April 27, 1842, Mexican and other 

republican dollars were proclaimed the standard currency of the 

colony. By a proclamation of 1863, Mexican dollars and other silver 

dollars of equivalent value that might from time to time be authorized became the only legal tender of payment. 

The present currency of the colony was established by an order 

in council proclaimed in 1895. In accordance therewith, the Mexican 

dollar is the standard, to which the British or any other dollar 

should conform if it is to be accorded equality of status. The order 

in council is noteworthy also as ordaining that, in the absence of 

express agreement to the contrary in all contracts and transactions 

involving liability to pay money, payment should be made in the 

standard coin of the colony. In effect the Mexican dollar and the 

Hong Kong (British) dollar are full legal tender. 

Anyone holding silver bullion may have it coined into Hong Kong 

dollars at the Royal Mint in London upon payment of the minting 

charges. The dollars are also freely purchasable from the Bombay 

branch of the Royal Mint, but not under circumstances which may 

be described as free coinage, for the mint insists on using its own 

bullion. 

53 United States gold money is legal tender throughout Honduras. 

54 See Hong Kong Government Gazette, Aug. 1, 1930, p. 383 ff., containing Report of 

the Currency Committee, 1930. The chairman of the committee was C. Mcl. Messer. 

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The importation into and circulation in the colony of any foreign 

silver or nickel coin (excepting those named in the law) was forbidden in 1913 by ordinance no. 15 of that year. 

On June 19, 1930, owing to the local depreciation of silver dollars in terms of Hong Kong paper money, importation of Mexican 

dollars in quantities of more than 50 at a time was prohibited. 

Following the recommendation of the Hong Kong Currency Commission, the Hong Kong banks of issue were authorized to increase 

their note issue against cover of bar silver held in London rather 

than against minted dollars held in Hong Kong. 

The ordinances governing the note issue of the Hong Kong & 

Shanghai Banking Corporation in Hong Kong require a reserve of 

one third in silver. This ratio has been observed also by the two 

other banks of issue. Another significant feature of the system of 

note issue in Hong Kong is that the Hong Kong & Shanghai Banking Corporation enjoys an authority, not shared by the other banks 

of issue, whereby it may exceed its statutory limit to any amount 

by the deposit of an amount of coin or bullion equivalent to the 

value of the excess notes issued. The effect of this is that when the 

limits of the other two issuing banks have been reached any large 

emergency demand may only be met by the Hong Kong & Shanghai 

Banking Corporation. 

The privilege of issuing notes in the colony was granted to the 

chartered bank in 1853, to the Hong Kong & Shanghai Banking 

Corporation in 1866, and to the Mercantile Bank in 1911. The 

understanding or convention by which notes, rather than coin, 

became accepted in all banking, mercantile, and revenue transactions is said to date from about 1890, and there subsequently developed a tacit agreement not to observe too strictly the terms of the 

order-in-council of 1895. The acceptance of this convention was 

almost universal, and any attempt to depart from it by meeting 

obligations with coin tended to be suppressed by reciprocating in 

kind. 

Possibility of increased use of silver without new legislation.— 

In theory the use of silver money might be extended indefinitely 

without amending the existing laws. 

Attitude toward silver.—Despite the fact that silver dollars are 

full legal tender, the Hong Kong and South China public at times 

during the last 33 years has accepted them only at a discount in 

terms of the notes issued by Hong Kong banks, because of the relatively greater convenience of the paper money. For a time the 

banks refused to accept for deposit any large amounts of silver. 

The local branch of a French bank became in effect a silver-dollar 

clearing house and depository, and at one time had over 20,000,000 

silver dollars stored in its vaults. When the premium on paper money 

was high, the Hong Kong & Shanghai Banking Corporation refused 

to accept silver checks. Other banks finally met, and served an ultimatum stating that they would break the clearing house unless the 

Hong Kong & Shanghai Banking Corporation accepted silver 

dollars. Since then, note-issuing banks in Hong Kong have maintained a large portion of their reserve in Hong Kong dollars.55 

55 See The Silver Market in 1930, Trade Information Bulletin No. 742, by Herbert M. 

Bratter, pp. 17-18 ; also the Hong Kong Government Gazette of Aug. 1, 1930, p. 385. 

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68 monetar y "us e o f silve r i n 19 3 3 68 

The report of the Hong Kong Currency Commission,56 rendered 

in May 1931, stated that the retention of the silver standard was 

to the" colony's best interests, because the abandonment thereof 

"would gravely prejudice the import and export trade of South 

China conducted and financed through Hong Kong, which is the 

sheet anchor of the colony's prosperity, and would affect injuriously many other branches of business. * * * 

" We * * * make a suggestion that the existing issue of silver 

subsidiary coins should be withdrawn and replaced by an issue of 

base-metal token coins * * *. 

" We make recommendations for the accumulation of a sterling 

fund by the currency board with the object of preparing for the 

ultimate conversion of Hong Kong currency to a gold basis, if and 

when it appears desirable." 

Present employment of silver.—The circulation of silver in Hong 

Kong is in practice very small. Apart from subsidiary coins the 

currency in use consists exclusively of banknotes redeemable in silver 

dollars. The banks which do not enjoy the right of note issue keep 

as little silver as possible on hand. The main employment of the 

metal is as reserves against the notes of the three issuing banks. 

At the end of December 1932, the combined circulation of notes of 

the Hong Kong & Shanghai Banking Corporation, the Chartered 

Bank of India, Australia & China, and the Mercantile Bank of India 

totaled 153,612,000 Hong Kong dollars, of which 130,223,000 were 

notes of the first-mentioned institution. According to E. Kann, of 

Shanghai, if we assume that the note-issuing banks hold about 

50,000,000 dollars, the total stock is about 200,000,000 dollars, or 

slightly more than 150,000,000 fine ounces. 

The Hong Kong dollar coin has a gross weight of 26.9563 grams 

and is 0.900 fine. The Mexican dollar weighs 27.0691 grams and is 

0.9027 fine. There are four subsidiary coins of silver, all 0.800 fine: 

The 50-, 20-, 10-, and 5-cent pieces, Weighing 13.5757, 5.4307, 2.7153, 

and 1.3577 grams gross, respectively. These subsidiary silver coins 

are legal tender in payments of not more than two dollars. According to a 1930 report, the Hong Kong Government has issued subsidiary coin of the face value of 44,000,000 Hong Kong dollars. 

In 1905 the Government ceased making subsidiary silver coin and 

has since demonetized more than 22,735,000 Hong Kong dollars of 

subsidiary silver. The estimated amount of subsidiary coin in circulation in 1928 was 17,914,370 Hong Kong dollars. 

HUNGARY 

The monetary unit is the pengo, divided into 100 fillers. The 

pengo has a par value of approximately $0.1749. 

Present legal provisions.—The monetary law (no, 35) of 1925 

provided for subsidiary pengo silver coins weighing 5 grams, 0.640 

fine, to be issued within a maximum of 45,000,000 pengo, and to be 

legal tender up to 50 pengo. Law no. 26 of 1929 increased the 

maximum issue to 65,000,000 pengo, and authorized the minting of 

2-pengo and 5-pengo silver pieces, 0.640 fine and weighing 10 and 25 

grams, respectively. The 2-pengo piece is legal tender to 100 pengo 

and the 5-pengo piece, to 250 pengo. 

56 Messrs. W. H. Clegg, P. H. Ezechiel, G. L. M. Clauson. 

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The finance minister's decree no. 116,600 of 1930 specified the 

amount of silver of each denomination to be minted within the 

65,000,000 pengo limit mentioned above, namely: 

Pengo 

31,000,000 1-pengo pieces 31,000,000 

5,000,000 2-pengo pieces 10, 000, 000 

3,650,000 5-pengo pieces 18,250,000 

Total 59,250,000 

Decree no. 109,500 of 1931 ordered the minting of 2,000,000 additional 2-pengo pieces and thus brought the total to 63,250,000 pengo, 

some of which are not in circulation but are held by the Hungarian 

National Bank.57 

The law governing the central bank provides that notes and 

demand liabilities (other than those owing to the State) shall be 

secured by a 24 percent58 reserve which may include silver and minor 

coin. There is apparently no limit to the amount of the reserve 

which may be held in the form of silver coin. The latest report 

available, showing silver separately, is that for 1928. Of a reserve 

totaling over 263,550,000 pengo, 792,185 pengo was silver coin and 

7,673,617 pengo, other subsidiary coin. 

Possibility of increased use of silver without new legislation.— 

Under the terms of the 1929 law silver might still be issued to the 

extent of 1,750,000 pengo, the minting of which would consume about 

180,000 fine ounces of the white metal. 

Attitude toward silver.—No legislation is contemplated which 

would affect the monetary use of silver. 

Present employment of silver.—At the end of 1931 the circulation 

of silver and other subsidiary coin amounted to 66,125,000 pengo, 

compared with a note circulation of 422,794,445 pengo. Silver alone 

was reported as totaling 10,268,348 pengo in circulation and 1,453,861 

in the central bank and treasury. The 63,250,000 pengo of silver 

already minted represent just over 6,500,000 fine ounces of silver. 

HYDERABAD 

The monetary unit is the Osmania Sicca rupee, divided into 16 

annas. The Osmania Sicca rupee has a par value of approximatelv 

$0,465. 

The Osmania Sicca rupee was established by the Hyderabad Government in 1855 as a silver coin weighing 165 grains 9/11 (0.8182) 

fine. Subsidiary coins include the silver half-rupee, quarter-rupee, 

and 2-anna pieces, weighing 5.57, 2.76, and 1.34 grams, respectively, 

and of the same fineness as the Osmania Sicca rupee. These coins 

are all struck at the Hyderabad State Mint. 

To September 1930, Osmania Sicca rupees had been issued to a 

total of 251,600,000. Withdrawals totaled 5,918,000, and the amount 

held in the paper currency reserve, 51,700,000, leaving about 194,-

000,000 presumably in circulation. Also held by the general public, 

chiefly in hoards, is a substantial amount of Halli Sicca rupees, 

which are no longer legal tender, but are accepted by the Government 

treasury and withdrawn from circulation as received. 

57 The bank held approximately 9,309,000 pengo of subsidiary coin on Feb. 15, 1932. 

68 Subject to a special tax, the ratio may be permitted to fall below this amount. The 

ratio is to be increased to 28 percent in June 1934, and to 33 % percent in June 1939. 

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According to the Hyderabad Currency Act of 1912, the Osmania 

Sicca rupee and half-rupee are unlimited legal tender, the silver 

quarter- and eighth-rupee being limited to 1 rupee in legal tender. 

Although not legal tender, British Indian rupees circulate freely, 

for they may be used whenever the parties to a contract agree. 

The Osmania Sicca rupee is pegged to the British Indian rupee 

by means of a fund known as the Osmania Sicca Stabilization Fund. 

The note issue is secured by the paper currency reserve, which must 

consist two thirds of gold or silver bullion or of rupees (British 

Indian or Osmania Sicca). In October 1930 the paper currency 

reserve consisted of British Indian rupee notes, 26,782,500 rupees; 

British Indian coin and bullion, 6,000,000 British Indian rupees; 

and Osmania Sicca coin, 52,660,142 Osmania Sicca rupees. 

In 1930, British Indian currency to a total of 5,000,000 rupees 

was estimated to be in circulation in Hyderabad. 

ICELAND 

The monetary unit is the Danish krone (crown), divided into 

100 0rer. The par value of the krone is approximately $0,268. 

(See Denmark.) 

IRAQ 

The monetary unit is the dinar, divided into 1,000 fils. The dinar 

has a par value of approximately $4.8666. 

Present legal provisions.—The currency act of March 24, 1931, 

signed by King Feisal on April 19, states that there may be coined 

from time to time by the currency authority for use in Iraq, subsidiary silver coins of 50 and 20 fils, 0.500 fine. The prescribed gross 

weight of these coins is 9 and 3.6 grams, respectively. The 50-fil 

coin is legal tender up to 5 dinars, and the 20-fil coin up to 200 fils. 

British Indian silver coins ceased to be legal tender on April 1, 1932. 

A law dated May 14, 1932, sanctioned the issuance of two additional silver coins—a 200-fil (or ryal) piece and a 100-fil (or halfryal) piece, both 0.900 fine, and having gross weights of 20 and 10 

grams, respectively. 

The currency is controlled by the Iraq Currency Board, sitting 

in London, where a reserve fund in British securities and bank notes 

is held. 

There are no restrictions upon movements of silver. 

Possibility of increased use of silver without new legislation.— 

There appears to be no legal obstacle to the issuance of additional 

silver coins. By the existing laws the Iraq Currency Board may 

on demand issue 20-, 50-, 100-, and 200-fil silver coins according to 

the requirements of the country without any limit, but against prepayment of pounds sterling in London. If the board desired to 

mint other silver denominations, new legislation would be necessary. 

The silver coinage requirements of Iraq are estimated at one sixth 

of the total currency requirements. Placing the latter at 3,000,000 

dinars, approximately 500,000 dinars in silver coins will be needed 

when all the British Indian currency has been withdrawn. Since 

Iraqi silver coins to a total of 208,150 dinars—representing 602,285 

fine ounces of silver—were in issue at the end of 1932, approximately 

292,000 additional may eventually be issued. 

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Future consumption of silver in coinage was estimated by Minister 

Eesident P. Knabenshue in March 1933, as shown in the following 

table: 

Denomination 

Face value 

in dinars 

Number of 

pieces 

Fine ounces 

(troy) of 

silver 

required 

200 fils 75,000 

75,000 

100,000 

41,850 

375,000 

750,000 

2,000,000 

2,092,500 

217,014 

217,014 

289,352 

121,094 

100 fils 

75,000 

75,000 

100,000 

41,850 

375,000 

750,000 

2,000,000 

2,092,500 

217,014 

217,014 

289,352 

121,094 

50 fills 

75,000 

75,000 

100,000 

41,850 

375,000 

750,000 

2,000,000 

2,092,500 

217,014 

217,014 

289,352 

20 fils 121,094 

75,000 

75,000 

100,000 

41,850 

375,000 

750,000 

2,000,000 

2,092,500 

217,014 

217,014 

289,352 

121,094 

Total 

75,000 

75,000 

100,000 

41,850 

375,000 

750,000 

2,000,000 

2,092,500 

217,014 

217,014 

289,352 

121,094 

Total 291,850 844,474 

Attitude tovmrd silver.—The official attitude toward silver seems to 

be that it should be employed simply as subsidiary money. No new 

currency legislation is contemplated. As the people prefer metal to 

paper money, silver promises to continue popular. 

Present employment of silver.—On September 30, 1932—according 

to a statement of the currency officer—there were outstanding 

3,638,000 50-fil silver coins amounting to 181,900 dinars, and 

947,500 20-fil silver coins amounting to 18,950 dinars, a total of 

200,850 dinars. This compared with a total circulation of coins 

(silver, nickel, and bronze) of 234,475 dinars. Paper money outstanding on the same date amounted to 1,565,923 dinars. 

A report by the American minister resident at Baghdad on March 

13, 1933, stated that up to the end of 1932, 2,086,185 dinars in notes 

and coin had been issued in exchange for Indian rupee currency, 

the circulation of which, in Iraq on April 1, 1932, was estimated 

at 40,000,000 rupees. During the 9 months since the first issuance 

of the new currency a total of 27,815,800 British Indian rupees had 

been withdrawn. It is believed that the British Indian currency 

will not be completely withdrawn for 5 years. 

Although the law of May 14, 1932, became effective May 23 

that year, no 100- or 200-fil coins had been issued by the middle of 

March 1933. It was reported, however, that a consignment was 

shortly expected from London. About 142,000 dinars of the 100-

and 200-fil silver coins are expected to be issued. 

IRISH FREE STATE 

The monetary unit is the Saorstat pound, divided into 20 shillings of 12 pence each. The Saorstat pound has a par value 

of approximately $4.8666. 

Present legal provisions.—The coinage act of 1926, approved 

April 13, provides for three silver coins, legal tender to not over 

40 shillings, as follows:59 

Denomination Fineness 

Gross 

weight 

in grams 

y2 crown 0. 750 

.750 

.750 

14.1380 

11.3104 

5. 6552 

Florin 

0. 750 

.750 

.750 

14.1380 

11.3104 

Shilling 5. 6552 

0. 750 

.750 

.750 

14.1380 

11.3104 

5. 6552 

0. 750 

.750 

.750 

14.1380 

11.3104 

5. 6552 

59 See the General Aets passed by the Oireachtas of Saorstat Eireann during the year 

1926 (Dublin 1927), pp. 121-127. 

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The Minister of Finance is authorized to provide and issue the 

foregoing silver coins, and may call in coins of any particular description. British coins enjoy the same legal tender properties as 

Free State coins of the corresponding denominations. 

The executive council may by order deprive British coins of legal 

tender either generally or for any specific purpose. 

Possibility of increased use of silver without new legislation— 

The Finance Minister apparently possesses broad powers to issue 

silver coin. 

Attitude toward silver.—No preference for silver has been noted. 

Present employment of silver.—Circulation of silver in the Irish 

Free State at the end of 1931, totaled £711,764, not including 

£313,931 held in the banks. 

In February 1929, the debates in the British Parliament revealed 

an arrangement between the United Kingdom and the Irish Free 

State, whereby up to £750,000 of British silver coins in use in the 

Irish Free State would be redeemed by the British Government at 

their face value over a 10-year period.60 

ITALIAN SOMALILAND 

The monetary unit is the Italian lira, divided into 100 centesimi. 

The lira has a par value of approximately $0.0526. 

Present legal provisions.—By royal decree of June 18, 1925, the 

Italian lira is the only legal tender in Italian Somaliland. Special 

silver coins for the colony were established—the 10-lira piece weighing 12 grams, and the 5-lira piece weighing 6 grams; both coins, 

0.835 fine. The rupia, a silver coins, is stabilized in value at 8 lira. 

Attitude toward silver.—There has been reported no intimation 

of any change in the law governing the monetary use of silver in 

the colony. 

Present employment of silver.—In commercial transactions the 

Maria Theresa dollar is still widely used by the natives. 

ITALY 

The monetary unit is the lira, divided into 100 centesimi. The 

par value of the lira is approximately $0.0526. 

Present legal provisions.—Silver disappeared from circulation 

during the World War and it was not until 1925 that the decision 

was reached to put silver coins back in circulation. 

On September 7, 1926, the Government undertook to convert the 

Bank of Italy's 5- and 10-lira notes into silver coin. Under the 

terms of decrees of that date and June 23, 1927, there have been 

issued 20-lira pieces 0.800 fine and 10- and 5-lira pieces 0.835 fine. 

These three coins have a gross weight of 15,61 10, and 5 grams, 

respectively. The 20-lira piece is legal tender for all debts not exceeding 1,000 lire. The legal tender of the 10- and 5-lira pieces is 

limited to 500 lire. 

80 See the London Times, Feb. 28, 1929. The matter was also discussed in the Irish 

Times (Dublin) of Jan. 22, 1929, which gave £1,000,000 as the estimated circulation of 

British coinage in the Irish Free State. 

61 Some of the 20-lira pieces weigh 20 grams. See table. 

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By decree of December 21, 1927, the currency was stabilized in 

terms of gold. 

Royal Decree No. 988 of July 3, 1930, provided for the withdrawal of 100,000 lire of 20-lira coins and the substitution of 10-

and 5-lira coins therefor. 

Possibility of increased use of silver without new legislation.— 

The Government has authority to issue 89,857,000 lire in silver without new legislation. (See accompanying table.) This would require 

about 2,400,000 ounces of fine silver. 

Attitude toward silver.—No legislation which would affect the 

monetary use of silver is reported. Should the need for more silver 

currency arise, it would be a simple matter to issue a decree law 

covering the situation. But, it is reported, there exists no sentiment for silver, the metal being used simply as convenient for subsidiary purposes. In replacing small bank notes with coin prior 

to the stabilization of the currency in 1927, the Government after 

some consideration decided upon silver rather than nickel. The 

use of silver was informally explained at the time as being the more 

consonant with the dignity of the State. Apart from this, however, it should be recalled that the Government had on hand a stock 

of pre-war silver coins then no longer in circulation. 

Present employment of silver.—The silver coins issued under the 

Latin Monetary Union specifications have all been withdrawn from 

circulation. 

Authorized circulation of silver and the actual circulation on 

September 30, 1932, were as shown in the following table: 

[In thousands of lire] 

Denomination Authorized Actual Still issuable 

20-lira . 200,000 

650,000 

875,000 

i 190,828 

636,675 

807,640 

9,172 

13,325 

67, 360 

10-lira-_ - __ _ 

200,000 

650,000 

875,000 

i 190,828 

636,675 

807,640 

9,172 

13,325 

5-lira - 67, 360 

200,000 

650,000 

875,000 

i 190,828 

636,675 

807,640 

9,172 

13,325 

67, 360 

Total _ _ 

200,000 

650,000 

875,000 

i 190,828 

636,675 

807,640 

9,172 

13,325 

67, 360 

Total _ _ 1,725,00 1,725,000 1,635,14 1,635,143 89,857 

i Of these, 36,200,000 lire were in 20-gram pieces and the rest in 15-gram pieces. 

Since 1919 the Italian Government has sold no silver. Estimates 

of silver holdings in Italy as of the end of 1932 are as follows: 

Held by the Banca d'ltalia: Fine ounces 

Silver currency 68, 359 

Bar silver 39,127 

Total 107, 486 

Held by the Government: 

With the Treasury, pre-war 5-lire pieces 1,149, 000 

Bar silver in the mint 4,179, 596 

Total 5, 328, 596 

Grand total 5,436,082 

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JAMAICA 

The monetary unit is the pound sterling, divided into 20 shillings 

of 12 pence each. The par value of the pound sterling is 

approximately $4.8666. 

Present legal provisions.—The British coinage system applies to 

Jamaica. British silver coins less than 6 pence in value are limited 

in legal tender to 40 shillings; larger coins are unlimited legal 

tender in Jamaica.62 

According to a proclamation of October 23, 1863, money representing fractional parts of " the dollar of foreign States " is not 

legal tender. The United States standard silver dollar ceased to be 

legal tender in Jamaica in 1876. 

Present employment of silver.—At present only American bills, 

among foreign currencies, circulate to any extent. Some American 

silver is to be found in circulation, especially around Kingston. 

A 1930 report stated the commissioners of currency were gradually 

converting into silver coins, the British Treasury notes held as 

part of the coin reserve. The balance sheet of the commissioners 

of currency for March 31, 1930, showed: Total fund, £86,976; note 

guaranty fund, £25,449; silver coin portion of note guaranty fund, 

£16,900. 

The United States Bureau of the Mint reports silver in the banks 

and treasury of Jamaica at the end of 1931 as equivalent to 

$876,000 United States currency. 

JAPAN63 

The monetary unit is the yen, divided into 100 sen. The yen 

has a par value of approximately $0.4985. 

Present legal provisions.

64—The basic monetary law is law no. 16 

of March 6, 1897, which went into effect October 1, 1897. That law 

substituted the gold for the silver standard and provided for the 

gradual retirement of the 1-yen silver coins. It altered the silver 

content, per yen, of the subsidiary silver coins from the equivalent 

of approximately 0.7837 fine ounce, troy, established in 1871, to 

approximately 0.6933 fine ounce. This was lowered successively in 

1906, 1918, and 1922, when the content was made approximately 

0.2292 fine ounce. 

According to the present law there are only two denominations 

of silver currency in use: The 50-sen piece weighing 4.95 grams 

(gross) and the 20-sen piece weighing 1.98 grams. Both are 0.720 

fine.65 Both are limited to 10 yen in legal tender. 

^According to William F. Spalding, Directory of the World's Currencies and Foreign 

Exchanges. 

63 The currency system of Japan is described in detail in The Currency System of Japan. 

Trade Information Bulletin No. 673, by Herbert M. Bratter. sold at 10 cents per copy by 

the Government Printing Office, Washington, D.C. See, also, Japanese Banking, Trade 

Promotion Series No. 116, by Herbert M. Bratter, sold at 50 cents per copy. 

64 Imperial Mint, Osaka. The Coinage Law, Coinage Regulations, and Regulations for 

Refining and Certification of Fineness of Gold and Silver Bullion, etc., of Japan, Osaka, 

1923.—Contains: The coinage law (law no. 10 of March 1897 as amended by subsequent 

laws; coinage regulation (Imperial Ordinance No. 138 of 1897 as amended by subsequent 

ordinances) ; regulation for refining and certification of fineness of gold and silver bullion 

(Imperial Ordinance No. 139 of 1897 as amended by subsequent ordinances) ; procedure 

relating to the receipt and payment of bullion for coinage and coins manufactured and 

to the certification of fineness of bullion for refining; and assay fees for bullion deposited, 

fees for certification of fineness, and fees for refining and parting. 

63 There was a 5-sen silver piece, discontinued in 1867, and a 10-sen silver piece, 

discontinued by law no. 5 of 1920. 

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The Japanese coinage system was, in April 1918, extended to 

Chosen. Old silver coins of Chosen continued to be legal tender 

until the end of 1920. In Taiwan prior to 1908 Japanese silver yen 

circulated. In 1908 steps were taken toward the application of the 

gold standards, and in April 1911 the Japanese coinage system was 

extended to Taiwan. 

According to the act governing the Bank of Japan, the bank's 

note-issue reserve may include silver. The bank may issue notes 

without limit against gold and silver coin and bullion, provided the 

silver does not exceed 25 percent of the total. (In practice no silver 

is so used.) The bank's reserve fund set aside to make up losses of 

capital and equalize annual dividends may be invested in silver. 

The Bank of Chosen act permits that institution to issue notes 

without limit, on the security of gold specie, gold and silver bullion, and Bank of Japan notes, the silver not to exceed 25 percent 

of the reserve. 

The Bank of Taiwan may issue notes without limit against a 

reserve of gold and silver coins and bullion. 

Possibility of increased use of silver without new legislation.— 

Since the present laws place no limits on the amount of silver coinage, the latter might be increased without new legislation. 

Attitude toward silver.—No legislation affecting the monetary 

use of silver is anticipated, the authorities apparently being content 

to limit the use of silver to subsidiary coinage. 

Present employment of silver.—In recent years silver coins in circulation have increased, as shown by the following statement: 

Yen 

1915 281,418,000 

1920 314,751,000 

1925 450,350,000 

193 0 455,912,000 

193 1 465,736,000 

How much fine silver is represented by these figures cannot be 

precisely stated because the silver content of the coins was altered 

by Law No. 73 of April 1922. Thus, from 1867 to 1922, the 50-sen 

piece contained 3.588 momme66 or 208 grains of silver; whereas, 

after 1922 its silver content was reduced to 1.32 momme or about 

76.5 grains. 

In March 1930 Japanese silver coins in Chosen totaled 3,172,000 

yen, compared to a total currency stock of 140,755,000 yen. 

According to a statement in the Trans-Pacific (Tokyo) of February 23, 1933, the Government's minting program "for 1933-34 

called for 5,000,000 yen of 50-sen silver pieces. The magazine, however, reported a surplus of 50-sen pieces already in circulation in 

Japan. 

LATVIA 

The monetary unit is the lat, divided into 100 santimi. The lat 

ha® a par value of approximately $0.1930. 

Present legal provisions.—The basic monetary law is that of 

August 3, 1922, which established the lat as the standard of value. 

This law, as amended by laws of September 1922 and March 18, 

66 1 momme equals 0.12057 ounce troy. 

172120—33 6 

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1925,. provided for the minting of 1-, 2-, and 5-lat silver pieces and 

set the maximum silver issue at 30 lats per capita.67 Silver must 

be accepted by the Treasury without limit as to quantity; in other 

payments legal tender of the silver coins is restricted to 25 lats. 

The coins are 0.835 fine and their gross weights are shown in the 

accompanying table. 

Possibility of increased use of silver without new legislation.— 

Without new legislation silver coins to the amount of 10 lats per 

capita might be issued, involving the use of approximately 2,617,000 

fine ounces. (Latvia's population by the 1930 census was 1,900,045.) 

Attitude toward silver.—No change is contemplated in the legislation governing the monetary use of silver. Although the existing 

law would permit the issuance of additional silver coins, no such 

step is contemplated. The present stock of silver in circulation is 

considered adequate. 

The amount of silver represented by the coins minted was as 

follows on October 1, 1932: 

Denomination Number of 

pieces 

Silver content in kilograms 

Silver 

content 

in thousands of 

fine 

ounces 

1 lat. 10,000,000 

7,000,000 

3,000,000 

41,750 

58,450 

62,625 

1,342 

1,879 

2,013 

2 lats 

10,000,000 

7,000,000 

3,000,000 

41,750 

58,450 

62,625 

1,342 

1,879 

5 lats 2,013 

10,000,000 

7,000,000 

3,000,000 

41,750 

58,450 

62,625 

1,342 

1,879 

2,013 

Total 

10,000,000 

7,000,000 

3,000,000 

41,750 

58,450 

62,625 

1,342 

1,879 

2,013 

Total 20,000,00 20,000,000 162,825 5,235 

Present employment of silver.—The following table shows the 

circulation of silver in Latvia on October 1, 1932: 

Denomination 

Gross 

weight 

in grams 

Face value 

of coins 

minted 

Face value 

of coins in 

circulation 

1 lat 5.0 

10.0 

25.0 

Lats 

10,000,000 

14,000,000 

15,000,000 

Lats 

4,600,000 

10,000,000 

10,600,000 

2 lats 

5.0 

10.0 

25.0 

Lats 

10,000,000 

14,000,000 

15,000,000 

Lats 

4,600,000 

10,000,000 

5 lats - 10,600,000 

5.0 

10.0 

25.0 

Lats 

10,000,000 

14,000,000 

15,000,000 

Lats 

4,600,000 

10,000,000 

10,600,000 

Total.. 

5.0 

10.0 

25.0 

Lats 

10,000,000 

14,000,000 

15,000,000 

Lats 

4,600,000 

10,000,000 

10,600,000 

Total.. 39,000,000 25,200,000 

LEEWARD ISLANDS68 

The monetary unit is the pound sterling, divided into 20 shillings 

of 12 pence each. The par value of the pound sterling is approximately $4.8666.69 

The British coinage system applies to the Leeward Islands. 

67 See Report of the Director of the Mint, 1929, p. 165. Other amendments to the 

coinage law were enacted Oct. 2, 1923; Mar. 20, 1924; and Oct. 2, 1925. 

68 Antigua, St. Kitts-Nevis, Montserrat, Dominica, and British Virgin Islands. 

69 The British West Indies dollar, a unit of account equivalent to 4s. 2d. is in use, but it 

is not coined. 

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LIBERIA 

The monetary unit is the dollar, divided into 100 cents. The 

Liberian dollar has a par value of $1. 

Present legal provisions.—The monetary unit is established by 

article 28 of the Constitution. The recognized currency system 

includes silver 5-, 10-, and 50-cent pieces. 

Attitude toward silver.—No prospective legislation which would 

affect the monetary use of silver has been reported. 

Present employment of silver.—Only one issue of the Liberian 

silver coins mentioned has been minted and the coins do not circulate. Small stocks of them are held at the Monrovia branch of the 

Bank of West Africa. 

The principal currencies used in Liberia are the British West 

African shilling and 2-shilling pieces, which, while not legal tender, 

are generally accepted throughout the country. In fact, the Liberian 

coins are generally refused by the natives. It has been estimated 

that probably not more than $10,000 of Liberian currency exists in 

the country. 

LIBYA (CYRENAICA AND TRIPOLITANIA) 

The monetary system of Italy applies to Libya. 

LIECHTENSTEIN 

See Switzerland. Liechtenstein uses Swiss currency, the silver 

coins of the principality having been demonetized April 1, 1931. 

LITHUANIA 

The monetary unit is the litas,70 divided into 100 centas. The 

litas has a par value of approximately $0.10. 

Present legal provisions.—The coinage is regulated by the " law 

relating to the emission and circulation of coined money ", issued 

June 20, 1924, and modified April 20, 1925. This law provides for 

silver coins 0.500 fine in denominations of 1, 2, and 5 litas,< the total 

coinage not to exceed 6 litas per capita. Silver coins are legal tender 

in payments of 50 litas or less. Silver coin in amounts of 200 litas 

or more is exchangeable for other forms of Lithuanian money. The 

gross weight of these coins is as follows: 

1 litas 2. 7 grams 

2 litas 5. 4 grams 

5 litas IB. 5 grams 

Article 15 of the coinage law states that " Thei Minister of 

Finance shall be authorized to decide which foreign coins, of what 

countries, and up to what amounts may be accepted on an equal basis 

with their own country's coins." 

Possibility of increased use of silver without new legislation.— 

Without new legislation 2,610,000 litas in silver might be issued. 

Attitude toward silver.—Whether any more silver will be issued 

depends entirely upon the requirements of the country's business. 

79 The litas (plural, litas) is also called lit (plural, litu). 

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Lithuania produces no silver and there is no special sentiment for 

the metal. 

Present employment of silver.—The circulation of silver was 

stated to be approximately 10,890,000 litas in November 1932, in 

addition to which 1,500,000 litas of silver coins were held in reserve. 

The note circulation of the Bank of Lithuania in November 1932, 

approximated 100,000,000 litas. 

LUXEMBOURG, GRAND DUCHY OF 

The monetary unit is the Luxembourg franc, divided into 100 

centimes. The franc has a par value of approximately $0.0278. 

Present legal provisions.—The Belgo-Luxembourg economic agreement of May 1,1922, established the monetary unit on a par with the 

Belgian franc. Luxembourg coins circulate in the Grand Duchy 

side by side with Belgian currency.71 Silver coins, in use since 

September 1, 1929, are as follows: 10-franc, 0.750 fine, gross weight, 

13.33 grams; 5-franc, 0.625 fine, gross weight 8 grams. 

There is no restriction on the importation or exportation of silver 

coin or bullion. 

Present employment of silver.—Most of the currency in use in 

Luxembourg is Belgian. No data is available here on the amount 

of Luxembourg coin outstanding. 

MACAO 

The monetary unit is the pataca, divided into 100 avos. The 

pataca is silver and has no fixed par value in terms of gold. 

Present legal provisions.—No metallic currency is issued by Macao, 

the only pataca currency being the notes of the Banco Nacional 

Ultramarino. The value of the pataca is kept at a par with that 

of the Hong Kong dollar, and Hong Kong currency as well as 

Chinese subsidiary coins are legal tender in Macao. 

The pataca is defined by law as 26.957 grams of silver 0.900 fine. 

The notes of the Banco Nacional Ultramarino are backed by 60 to 

70 percent in silver and the rest in Hong Kong bank notes or bank 

deposits, according to a 1932 report. 

Attitude toward silver.—So long as Hong Kong continues on a 

silver basis it is likely that Macao will do so. 

MADAGASCAR 

The monetary unit is the franc, divided into 100 centimes. The 

franc has a par value of approximately $0.0392. 

Present legal provisions.—The monetary unit is governed by the 

French stabilization law of June 25, 1928, promulgated in Madagascar the following day by the Governor General. (See France.) 

Attitude toward silver.—See France. 

Present employment of silver.—A number of old 5-franc silver 

coins are still in circulation, although they are being withdrawn by 

the Banque de Madagascar, which buys them up as bullion.72 The 

71 Luxembourg currency is not legal tender in Belgium. 

72 This and other colonial banks sold their stocks of silver to the French Treasury at 

the time of the monetary reform of 1928. 

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amount of these coins in the island in 1931 was estimated at 20,000,000 

francs. 

Since July 8,1929, there has been no restriction on the importation 

or exportation of the precious metals. 

MADEIRA 

The monetary unit is the escudo, divided into 100 centimos. 

The escudo has a par value of approximately $0.0442. (See Portugal.) 

MALTA73 

The monetary unit is the pound sterling, divided into 20 shillings 

of 12 pence each. The par value of the pound sterling is approximately $4.8666. 

Present legal provisions.—The only legal tender is British currency, in accordance with an order in council of September 14, 1886, 

and ordinance V of 1915. 

Possibility of increased use of silver without new legislation.— 

No special coinage is issued for Malta. 

Attitude toward silver.—See United Kingdom. 

Present employment of silver.—At the end of 1928 coin in circulation was estimated at £700,000. Coin in banks and the treasury 

at the end of 1931 was reported to the United States Bureau of the 

Mint as £55,000. 

MAURITIUS 

The monetary unit is the British Indian rupee, divided as in 

India and also decimally. The rupee has a par value of approximately $0,365. 

Present legal provisions.—The Indian currency system was 

adopted by Mauritius by Proclamation 28 of 1876, which made the 

silver rupee, one half rupee, one quarter rupee, and one eighth rupee 

legal tender.74 Proclamation 11 of 1877 limited to 5 rupees the legal 

tender of the i/5-rupee silver piece. Proclamation 12 of the same 

year made the same provision regarding the TVrupee silver piece. 

Rupee notes are redeemable in silver rupees when presented to 

the commissioners of currency in Mauritius. 

Possibility of increased use of silver \without neiv legislation.— 

Since there is no restriction on the importation of British Indian 

coin, the supply thereof can be increased at will without new legislation. 

Attitude toward silver.—There has been reported no disposition 

to alter the present monetary use of silver. 

Present employment of silver.—The commissioners of currency 

in May 1930 reported a note circulation of 14,653,250 rupees, representing a like amount of silver received therefor. Silver in the 

reserve was listed as 4,774,000 rupees, 14,653,250 rupees being " invested through crown agents and in India." 

73 Includes Gozo and Commino. 

74 The colony had its own paper money, however, until 1920, when that of India was 

adopted. 

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MEXICO 

The monetary unit is the peso, divided into 100 centavos. The 

peso has a theoretical par value of approximately $0.4985. 

Present legal provisions.—The law covering the monetary use of 

silver is that of July 25,1931, as amended March 10, 1932. 

According to a law of 1925, the unit of the monetary system is 

"the peso, equivalent to seventy-five (75) centigrams of pure gold." 

According to article 2, " circulating money"75 consists of the 

following : 

(a) Notes legally issued by the Bank of Mexico; 

(&) Silver 1-peso pieces authorized by the law of October 27, 1919; 

(c) Silver fractional currency consisting of 10-, 20-, and 50-centavo pieces,7® 

and certain specified bronze coins. 

The only currency which is unlimited legal tender is the peso coin; 

the fractional silver coins specified are legal tender in payments not 

exceeding 20 pesos. Within these limits the silver coins specified 

are legal tender at their face value for payment of any obligation 

contracted in Mexican currency, or—at the prevailing rate of 

exchange—for any obligation payable in foreign currency. The 1931 

law also provided for the immediate discontinuance of gold coinage 

and the demonetization of all previously minted gold coins. 

According to the preamble to the amendment of the currency law 

as published in the Diario Oficial of March 10, 1932, the scarcity of 

currency and the prevailing restriction of credit made it desirable 

to increase the monetary stock. It was accordingly decreed by the 

President77 that the 1931 law should be thenceforth amended (in 

so far as the coinage is concerned) to the following effect: 

To the Bank of Mexico exclusively pertains the right to order the coining* of money as and when it may be called for by the monetary requirements 

of the Republic, such coining to be strictly within the limits of those 

requirements * * *. 

The coining of silver money of 1 peso and of denominations higher than 

the unit may only be ordered by the Bank of Mexico, * * * subject to the 

veto of the Minister of Finance and Public Credit. The difference between 

the cost and the monetary value of the coins of 1 peso and of denominations 

higher than the unit which may be coined shall be held by the Bank of Mexico, 

with the exclusive object of increasing as far as may be necessary the legal 

reserves of the issue of bills, pending its definite application, by law, to the 

monetary reserve * * *. The coining of silver or copper money in denominations lower than the unit is subject to compliance with the requisites laid 

down in the foregoing paragraph, and precisely in exchange for silver 1 peso 

coins, which must be melted down for that purpose * * *. 

For this single occasion the Minister of Finance and Public Credit shall 

order the minting of silver money of 1 peso of legal coinage to the amount 

which, in the opinion of the board of directors of the Bank of Mexico, is absolutely indispensable to remedy the present insufficiency of currency. The total 

net proceeds of such coining shall be handed to the Bank of Mexico to be kept 

and applied to increasing the legal reserves of the issue of bills and for the 

formation of the monetary reserve, in manner laid down in the first article of 

this law for the funds proceeding from the minting which may be ordered by 

the Bank of Mexico. 

On March 22, 1933, a ministerial resolution and two monetary decrees were issued. A statement of the Minister of Finance, published 

75 That is, money entitled to circulate. 

76 Created by the laws of Oct. 27, 1919, and Apr. 29, 1925. All silver coins other than 

those mentioned in (b) and (c) above, were demonetized, with certain temporary provisions for the redemption of the 2-peso pieces and other fractional coins. 

77 In accordance with extraordinary powers vested in him in the matters of credit and 

currency by the law of Jan. 21, 1932. 

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in El Universal (Mexico City) March 23, made reference to the world 

economic depression, which necessitated certain measures designed 

to consolidate Mexico's monetary system, restricting silver coinage 

to the minimum. 

The ministerial resolution provided that " once the coinage program now under way is completed, coinage of unlimited-legal-tender 

silver shall be suspended and there shall be delivered to the Bank 

of Mexico the bar silver contracted for said coinage, that it may be 

applied, at its market value, to the monetary reserve," in accordance 

with the presidential decrees of March 22. 

The first decree amends the law with regard to the control of coinage and the monetary reserve. The second decree is designed to 

strengthen the Bank of Mexico's control of the currency. 

Under the first decree, "The coinage of silver and bronze money 

of any denomination may be ordered only by the Bank of Mexico 

* * * subject to the veto of the Minister of Finance." As to the 

monetary reserve, it shall contain the profits of coinage issued under 

transitory article 3 of the law of March 9, 1932, as well as gold 

acquired by such funds, etc. Metal in the reserve is to be valued at 

its market price. 

The law of August 25, 1925, and its amendments, and the abovecited 1931 law and its amendments of 1932 and 1933 regulate the 

currency functions of the Bank of Mexico. Seigniorage on the coinage and other items are deposited in the Bank of Mexico's monetary 

reserve fund. That part of the reserve held in Mexico may include 

silver in the form of coin or bullion valued at the market price of 

the metal they contain, " with the exception of the amounts, the 

holding of which in the form of fractional coin not exceeding in total 

3 percent of the 1-peso coins in circulation, may be judged prudent 

in order to assure their exchange for said moneys of 1 peso, as provided in this law * * *." The portion of the reserve which may 

be held abroad may include silver bullion at its commercial value. 

The present silver coins are in denominations of 1 peso, and 50, 

20, and 10 centavos, all 0.720 fine and having, respectively, the following approximate gross weights in grams: 16.6667, 8.3333, 3.3333, 

and 1.6667. The 2-peso piece, withdrawal of which is mentioned 

above, was coined only in 1921. Three million pieces were issued, 

0.900 fine and weighing 26.6667 grams. 

Possibility of increased use of silver without new legislation.— 

The law puts the issuance of silver coins under the control of the 

Bank of Mexico but subject to the veto of the Minister of Finance 

and Public Credit. 

Attitude toward silver.—No contemplated legislation affecting the 

monetary use of silver has been reported. 

Present employment of silver.—According to the Mexican Secretary of Finance, the stock of metallic money in millions of pesos, in 

Mexico on January 31,1933, was as follows : 

Silver: Amount 

1 peso 159.2 

50 centavos 31. 3 

20 centavos 3.0 

10 centavos 1. 8 

Bronze 5. 2 

Total. 200. 5 

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Coins " retired from circulation " : Amount 

Silver 7. 3 

Nickel 1. 7 

Bronze 0. 4 

Total " retired " 9.4 

Gross stock 209.9 

At the beginning of February 1933, it was stated that no new silver 

coins, minted in accordance with the monetary law, had been put 

into circulation. Probably something over 200,000,000 silver peso 

coins are in the hands of the public. 

Mexico is not de facto on the gold standard, because there is no 

coinage of gold and the former gold coins are all demonetized. Nor 

is Mexico on the silver standard, since there is no free coinage of 

silver and Mexican silver coins may not be imported from abroad. 

The exchange value of Mexican currency does not fluctuate with the 

price of silver but is determined solely by supply of and demand for 

exchange. During 1931 Mexico is estimated to have sold something 

over 4,000,000 fine ounces of silver with the object of converting into 

foreign exchange certain Government supplies of obsolete coins and 

metal disks then being held for possible future coinage. In March 

1932 the Mexican Government concluded arrangements to purchase 

and coin some 23,500,000 fine ounces of silver over a 12-month period. 

According to a recently published report, between March 12 and 

November 30, 1932, the Mexican Government purchased 23,330,406 

fine ounces of silver. 

According to the monthly statements of the Bank of Mexico, that 

institution's holdings of silver increased about 12,500,000 pesos between August and October 1932, probably as a result of delivery of 

new coinage and the issuance of notes in exchange for silver. On 

March 1, 1933, the bank held 69,441,000 pesos of silver. 

MONGOLIA 

Present legal provisions.—The following is taken from an article 

by E. Kann in the Chinese Economic Journal of December 1928 

(pp. 1007-1010) : 

The financial policy of Outer Mongolia is being directed by the Commercial 

and Industrial Bank of Mongolia (for short, " Mongolbank ") with head offices 

at Urga. The currency system was inaugurated by the same institution which 

enjoys the benefit of Russian expert advice. 

The introduction and adoption of a silver coin styled " tukhrik " as the unit 

meant the abolition of the Chinese yuan as a medium of circulation. Systematic endeavors are being made with a view of banishing Chinese money 

from Mongolian soil. 

In the summer of 1928 the financial authorities decided to make preparations 

for the introduction of the gold standard in Outer Mongolia. It was intended 

to put the new scheme into force ati the beginning of 1929, giving the fixed 

valuation of 50 American gold cents to the tukhrik. 

Meanwhile it will be of interest to record the official regulations relative 

to the existing Outer Mongolian currency system. The following is a crude 

translation of the Russian text, as recorded in No. 1 of The Economist, issued 

at Urga in February 1926 : 

" The Government of the People's Republic of Mongolia makes the following 

address to the population of the People's Republic of Mongolia: 

" Up to the present time Mongolia has had no currency of her own, and 

the whole trade was effected in foreign currencies, mainly in Chinese silver 

yuan. 

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"Apart from the fact that such a state of things is entirely inadmissable in 

an independent and integral country, as Mongolia is now conducting trade 

in silver currency, this entails enormous inconveniences and also involves the 

State treasury, as well as the whole population, in considerable incidental 

expenses. The Government of the People's Republic of Mongolia constituted 

by the will of the Great Huraldan, and with the approval of the latter, 

acknowledges it expedient in the interest of the Mongolian population to 

proceed forthwith with the reform of the monetary system and introduces, 

as from December 9 of this year, its own monetary unit, which shall be called 

the " tukhrik " and be in denominations of 1, 2, 5, 10 tukhriks. 

" Eventually, after the coinage of the silver tukhrik is completed, silver 

coins of 1-tukhrik and 50-mongo denominations and also smaller silver and 

copper coins will be placed in circulation. 

" Henceforth, pending the issuance of the silver tukhrik, banknotes shall be 

freely exchanged by the Commercial and Industrial Bank of Mongolia at all 

its branches into Chinese silver yuan according to the rate at which they were 

issued. At the same rate bank notes shall be accepted in payment for all fiscal 

levies and also accepted by all commercial concerns. 

" Bringing the above to the knowledge of the population of the People's 

Republic of Mongolia, the Government of the People's Republic of Mongolia 

requests the free Mongolian people to exhibit full confidence toward its own 

national coins and submit to and assist to accomplish the wise policy of the 

Government directed toward the replacement of the detrimental foreign currencies by the national one. 

"At this junction the Government deems it necessary to emphasize that 

cases of nonacceptance of the bank notes by the population of foreign citizens 

and commercial enterprises, as well as any agitation and instigation, tending 

to provoke distrust toward the new coins and bank notes, will be subjected 

to the full severity of the law. 

" In regard to the above, the Government promulgates for general information the resolution with regard to the issue of bank notes by the Commercial 

and Industrial Bank of Mongolia * * *." 

MOROCCO (FRENCH ZONE) 

The monetary unit is the Moroccan franc, divided into 100 centimes. The franc has a par value of approximately $0.0392. 

Present legal provisions.—The monetary unit was established by 

the decree of June 21, 1920, its parity with the French franc being 

established by the agreement of December 29, 1921. The official 

currency system makes no provision for the circulation of silver. 

(See France.) 

There are no restrictions on the importation or exportation of 

silver or gold in any form. 

Present employment of silver.—In portions of the protectorate old 

Moorish silver coins still circulate, but without legal status. (See 

Morocco, Spanish Zone.) 

In the French, Spanish, and international zones of Morocco at 

the end of 1931 the stock of monetary silver in circulation was 

estimated at 17,550,000 francs,78 and in the State Bank of Morocco, 

at 12,478,221 francs.79 

MOROCCO (SPANISH ZONE) 

The monetary system of Spain applies to Spanish Morocco. 

Present legal provisions.—The legal status of Spanish currency 

in the Spanish zone of Morocco is defined in article 37 of the General 

Act of Algeciras, which states: 

78 Of which 8,000,000 Hassani or native pesetas, valued at roughly 10,800,000 Moroccan 

paper francs, or $432,000, now demonetized in the French zone, and 5,000,000 Spanish 

pesetas, both still in current use by the natives in the Spanish and international zones. 

79 Consisting of 3,999,678 Hassani pesetas (equal to 799,935 rials), 184,319 Spanish 

pesetas—together valued at 6,057,752 francs—and 6,420,469 francs of unspecified silver 

coin belonging to the Government of the French Protectorate. 

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The bank (State Bank of Morocco) shall take such measures as it may 

deem conducive to a sounder monetary situation in Morocco. Spanish currency 

shall continue to be permitted to circulate as legal tender. 

In consequence the bank shall have the exclusive charge of purchasing 

precious metals, of striking and melting coins, as well as of all its other 

monetary operations for the account and profit of the Moorish Government. 

Theoretically, the Hassani currency is demonetized (see below). 

Possibility of increased use of silver without new legislation.— 

No new legislation would be necessary for the issuance of more 

silver. 

Attitude toward silver.—The natives favor the use of silver currency rather than paper. 

Present employment of silver*0—The status of the native silver 

currency was described as follows in 1930 by American Consul 

Horace Remillard, of Tangier: 

The Moroccan silver currency, known as " Hassani" currency 

from the fact of its first having been issued in 1881 by the Sultan 

Moulay Hassan, was demonetized by sultanic decree of March 19, 

1920, but this decree was never effectively put into application outside the French zone of Morocco. The " Hassani" currency, therefore, continues to enjoy extra-legal recognition in the Spanish zone. 

It is in general use among the Moors, especially in the rural districts, and is the coin commonly employed everywhere for the 

purchase of local produce from the natives. 

The unit of this Moroccan currency is the " rial" or " dollar." 

Moroccan silver currency (Hassani money) in circulation in the 

Spanish zone is estimated to aggregate 1,500,000 rials. There are 

no data available as to the amount of Spanish currency in circulation in the Spanish zone of Morocco, and no authoritative figure 

can be obtained indicating even approximately the monetary stock 

in existence in that zone. 

No notes or coins other than Spanish and Hassani currency circulate or are used to any appreciable extent in the Spanish zone 

of Morocco, and no resort worthy of special attention is made in 

that zone to the use of checks or paper money. 

There are no specific laws in the Spanish zone establishing restrictions on the importation or exportation of gold and silver coins or 

bullion, nor any which prohibit the importation of foreign notes 

or subsidiary coins. The provisions of article 37 of the Act of 

Algeciras, above quoted, would, however, be invoked in regard to 

any such operations which might be deemed to invade the privileges 

of the State Bank of Morocco referred to in that article of the 

Algeciras Convention. 

Although the monetary unit of the Moorish or Hassani currency 

is the rial, commercial operations carried on in this currency are 

based upon a fictitious Hassani peseta, or one-fifth rial, there being 

in existence no coin of that denomination. The rial is subdivided 

into 20 biliouns. The following statement sets forth certain details 

of the silver coins: 

Denomination Fineness 

1 rial (5 Hassani pesetas) 

% rial (2V2 Hassani pesetas) 

0. 900 

.835 

.835 

.835 

.835 

% rial (5 biliouns) 

2 biliouns (TV rial). 

1 bilioun rial). 

80 See this subject under Morocco, French zone. 

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MOZAMBIQUE 

THE COLONY OF PORTUGUESE EAST AFRICA AND THE TERRITORY OF THE 

CHARTERED COMPANY OF MOZAMBIQUE 

The monetary unit is the escudo, divided into 100 centimos. 

The escudo has a par value of approximately $0.0442. 

See Portugal for monetary unit and par value in United States 

currency. 

Since the publication on April 23, 1932, of the Portuguese Decree 

No. 21154, the currency of the State-administered Province of 

Mozambique has been based upon the Portuguese escudo. This decree 

was followed by publication of a similar decree in the colonial Boletim Oficial of June 4, 1932. 

The currency system of the territory of the Chartered Company 

of Mozambique (Manica e Sofala), with its capital at Beira, was 

not affected by the above decree. In the company's territory the 

unit had for some time been the gold escudo, and the silver currency 

in use consisted of British, South African, and Portuguese coins. 

On July 29, 1932, Consul Alfred D. Cameron reported from Lourenco Marques that the Chartered Company of Mozambique on June 

8 had announced that Portuguese silver coins would cease to circulate 

in its territory but would be replaced by silver notes in denominations 

of 1 escudo and 50, 20, and 10 centavos. 

By the terms of Decree No. 70-A, issued under the monarchy on 

July 30, 1897, and still valid, the importation of foreign silver coins 

is forbidden. However, a report made in March 1931 stated that 

British and South African silver coins circulated freely, particularly 

in and around Lourenco Marques, although they are not legal tender 

and not accepted by Government offices. 

Present employment of silver.—The estimated stock of silver coin 

in Mozambique at the end of 1931 was reported in pounds sterling 

as £3,000, of which £1,000 was in banks and £2,000 in circulation. 

NETHERLAND INDIA 

The monetary unit is the guilder (or florin), divided into 100 

cents. The guilder has a par value of approximately $0.4020. 

The Dutch plural of guilder is gulden. 

Present legal provisions.—Netherland India (also Dutch Guiana 

and Curacao) have the parent country's monetary system, although 

special coins are in some instances supplied for colonial use. 

The Indian Coinage Act of 1912 (as amended Nov. 27,1919) makes 

the Dutch 2y2-, 1-, and %-guilder silver coins unlimited legal tender 

in Netherland India. (For weights and fineness, see Netherlands.) 

It also provides for special colonial 25- and 10-cent silver coins, 

which differ from the corresponding Netherland coins in that they 

weigh 3.18 and 1.25 grams, respectively, and are both 0.720 fine.81 

81 With regard to the enforcement of the act of 1919, the following is excerpted from 

James Laurence Laughlin's A New Exposition of Money, Credit, and Prices, vol. I, pp. 

386-387. " On Nov. 27. 1919, the guilder of standard silver coins had risen beyond 

95 percent of its face value of 100, so that a bill was introduced to mint new silver coins 

for Holland and the Dutch East Indies at a fineness of 0.720 instead of 0.945. Inasmuch as the bullion content of the silver coins (2.50, 1.00, and 0.50 florins) was overvalued, and could then be melted at a profit, the fineness of 0.945, as enacted in 1901 

(Statute Book No. 132 of 1901) was lowered by the act of 1919 (Statute Book No. 786 

of 1919) to 0.720 in order to prevent melting of the coins. The Government was authorized to withdraw the coins of higher fineness and issue those of lower fineness. This 

change was only partly carried out. But when, at the end of 1921, the master of the 

mint proposed to the Colonial Secretary to withdraw from the circulation of the Dutch 

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All coins of a value greater than one quarter of a guilder are 

unlimited legal tender, other coins are limited legal tender. 

The Bank of Java, since June 1928, has been obliged to maintain 

a 40 percent reserve against its demand liabilities, the reserve permissibility including legal-tender silver and gold coins, foreign gold 

coin, and gold and silver bullion. On April 30, 1932, the note 

issue was 223,533,000 florins and the reserve was as follows (in 

florins) : Gold coin, 35,830,000: foreign gold coin, 51,607,000; gold 

bullion, 15,082,000; Netherland India silver coins, 45,643,000; subsidiary coins, 258,000. (The note issue at the end of 1932 approximated 205,000,000 florins.) 

Possibility of increased use of silver without new legislation.— 

Silver coinage is put into circulation chiefly through the medium 

of the Java Bank, which receives it in its capacity as depositary of 

public moneys. Some subsidiary coin usually is kept in the Government treasury, whence it is issued in response to local requirements; 

but the bank's holdings actually constitute the bulk of silver currency available for issuance to the public. In the absence of a 

branch mint in Netherland India it is impossible to meet unexpected 

demands for metallic currency by local coinage. The bank, therefore, considers it desirable to carry a considerable reserve of silver 

coin in the colony.82 

Attitude toward silver.—The natives prefer silver coins to those 

of baser metals. Both Netherland and foreign coins of gold and 

silver are hoarded rather extensively in the islands. When domestic 

silver coin is taken out of hoarding, the Bank of Java's stock tends 

to increase. (See figures above.) 

Present employment of silver.—Silver is the main circulating 

medium. On January 1, 1930, the circulation of silver was reported 

as being about 380,600,000 florins. Some silver coins of old issues, 

although not legal tender, are still in use. Straits dollars circulate 

to some extent on the east coast of Sumatra. There are no restrictions on the importation or exportation of silver coins or bullion. 

Silver coinage struck for Netherland India in 1930 totaled 

27,500,000 florins, and Netherland Indian silver coins withdrawn, 

over 26,280,000 florins. A report from The Hague in February 1933 

stated that the Bank of Java at the end of 1932 held 46,105,190 florins 

in silver or about 11,500,000 fine ounces. The holdings of silver are 

currently published in the League of Nations' Monthly Bulletin of 

Statistics. 

East Indies 6,000,000 florins of silver coins of the 0.945 fineness, and to replace them by 

those having the 0.720 fineness, the Royal Commission of 1921 vigorously objected on 

three grounds: (1) The difficulty in withdrawing all coins of 0.945 fineness; (2) the 

confusion of having two kinds of coins with different fineness for the same face value; 

(3) the danger of having coins with such low fineness as to stimulate counterfeiting. 

In fact, the Royal Commission already realized that the peak of the high price of silver 

had been passed in February 1920 and was now on the decline, and hence that the silver 

content of the coins would in the future be undoubtedly; less in value than their face 

value. In that case there would be no danger of the coins being melted and becoming 

scarce. In this way the crisis arising from the extraordinary rise in the price of silver, 

and the disarrangement of the token silver coinage, was disposed of without reminting 

the coins. Therefore, the commission recommended the restoration of the old fineness of 

0.945, since the danger from the increase in the value of silver had passed. Here again 

we have an illustration of the monetary wisdom and foresight of Dutch statesmen which 

has saved them from the ills into which other countries have fallen in dealing with 

silver." 

82 See Trade Information Bulletin No. 504, Currency Systems of the Orient, Washington, 

1927, p. 19. 

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NETHERLAND WEST INDIES 83 

The monetary unit is the guilder (or florin), divided into 100 

cents. The guilder has a par value of approximately $0.4020. 

Present legal provisions.—See Netherlands. 

Possibility of increased use of silver without new legislation.—See 

Netherlands. 

Attitude toward silver.—See Netherlands. 

Present employment of silver.—Silver coin in the banks and 

treasury of the Netherland West Indies at the end of 1931 totaled 

551,652 guilders. 

Silver currency in Surinam at the end of 1931 was estimated at 

890^380 guilders, according to the United States Bureau of the Mint. 

NETHERLANDS 

The monetary unit is the guilder (or florin), divided into 100 

cents. The guilder has a par value of approximately $0.4020. The 

Dutch plural of guilder is gulden. 

Present legal provisions.—The coinage act of 1901, as amended to 

date, governs the monetary use of silver. That act codified the legislation of the preceding quarter century. The law provides for silver 

coins as follows: 2y2-

84, 1-, and ^-guilder coins, 0.720 fine, weighing 25, 10, and 5 grams gross, respectively; and 25- and 10- cent 

pieces, 0.640 fine, weighing 3.575 and 1.4 grams. The first three 

coins mentioned are full legal tender. The other two are limited to 

10 guilders in legal tender. 

Prior to 1919 the 2%-, 1-, and %-guilder coins were 0.945 fine. 

On November 27, 1919, an act was passed lowering the fineness of 

these coins to 0.720, the first new coins of this fineness being issued 

in 1922. 

The 23/2-, 1-, and %-guilder pieces may be coined only for the 

account of the State to replace silver coins withdrawn from circulation. Subsidiary coins are minted only for the account of the State, 

for which purpose only metal obtained from State coins may be 

used. The use of silver bullion other than that obtained from melted 

Netherland coins is permitted only by royal decree, if such step is 

made necessary by the need for coins. Any sums needed to purchase 

silver bullion are inserted in the budget of the State expenditures 

fixed by law. 

The Netherlands Bank may include silver in its reserve against 

demand liabilities. The reserve, which otherwise must be of gold, 

may not decline below 40 per cent. 

Possibility of increased use of silver without new legislation.— 

Without a royal decree it would not be possible to increase the 

amount of silver in monetary use. 

Attitude toward silver.—In connection with what has been said 

above, competent authorities at present do not see any need for invoking the royal decree just mentioned. In fact, it is stated that, if anything, circumstances point to a movement in the opposite direction, 

that is, toward decreasing the amount of silver in circulation.843. 

In 1929 it was proposed to replace the larger silver coins by nickel 

ones, whereupon the Government appointed a committee to study the 

83 Includes Curagao and Surinam (Dutch Guiana). 

^Called rijksdaalder. 

w a See Addendum, p. 141. 

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subject. This committee, in July 1932, rendered an interim report 

in which the majority of members gave their views as opposed to 

the proposal. The Government has indicated no intention to change 

the Coinage Act of 1901. The public seems to prefer silver coins to 

nickel.85 

Present employment of silver.—The circulation of silver in the 

middle of February 1933 was estimated at 134,700,000 florins. (The 

note issue of the Netherlands Bank was about 962,000,000 florins at 

the end of 1932.) There are still in circulation some of the old silver 

coins 0.945 fine. 

At the end of 1931, of 138,731,000 florins of silver coin, 28,183,136 

florins were in the central bank and treasury. 

The ^-guilder coins are not in active circulation. During the 

World War currency notes known as zilverbons were issued because 

the public was hoarding coins. Although the notes were issued in 

various denominations, only those of one half guilder continue in 

circulation. 

In 1930 silver coinage executed for domestic use totaled 31,000,000 

florins, while silver coin withdrawn amounted to over 19,140,000 

florins. 

The Netherlands Bank in February 1933 was reported to hold 

about 26,540,000 florins in silver coins, the equivalent of 6,500,000 

fine ounces. The Government of the Netherlands holds no silver. 

NEW CALEDONIA 

The monetary unit is the French franc, divided into 100 centimes. The franc has a par value of approximately $0.0392. 

Present legal provisions.—The French coinage system applies to 

New Caledonia. 

Possibility of increased use of silver xoithout new legislation.— 

See France. 

Attitude toward silver.—See France. 

Present employment of silver.—No silver at present circulates in 

New Caledonia. 

NEW GUINEA, EASTERN (PAPUA) 

The monetary unit is the Australian pound, divided into 20 

shillings of 12 pence each. The pound has a par value of approximately $4.8666. At present it is on the sterling exchange basis at 

the ratio of approximately £125 Australian per £100 sterling. (See 

Australia.) 

Present employment of silver.—At the end of 1930 the stock of 

silver money was £2,667. 

85 The 1931 Report of the Director of the United States Mint (p. 172) quotes from 

Samuel Montagu & Co.'s weekly Bullion Circular of August 20, 1930, as follows : " The 

following extract, taken from the speech of M. Vissering, the president of the Netherlands 

Bank, at the annual meeting of that bank, hints at the possibility of yet another step in 

the ' flight from silver' which has been more or less continuous since the period of extraordinary high prices obtaining just after the war. It will be remembered that the 

Netherlands was one of the first countries to reduce their silver coinage, a, bill to this 

end being introduced by the Netherlands Government as far back as 1919 and becoming 

effective the following year. For the Netherlands and the Netherland East Indies the 

fall in the price of silver is especially of importance in view of the possible substitution 

of the larger silver coins by nickel media of payment. For, on the one hand, that fall 

causes the value of the guaranty, which, according to some, the present coins represent 

for the holder in view of their higher metallic value, constantly to diminish while on the 

other hand, the more the price of silver falls the greater will be the loss of the Government should the silver coins be eventually converted into nickel. According to the annual 

report of the Netherlands Bank the stock of silver and subsidiary coin held by both the 

Netherlands Bank and the Bank of Java at the beginning of this year was 54,085,000 

florins, a small proportion of which is presumably in smaller coins, for which nickel is 

already used. (In this connection, see p. 141.) 

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NEW HEBRIDES, BRITISH AND FRENCH CONDOMINIUM OF 

Present legal provisions.—British and French currency are legal 

tender in the New Hebrides. There are no French silver coins, but 

British and Australian silver coins are plentiful in the islands. 

Possibility of increased use of silver without new legislation.— 

See France. 

NEWFOUNDLAND 

Tlie monetary unit is the Newfoundland dollar, divided into 100 

cents. The Newfoundland dollar has a par value of $1. 

Present legal provisions.—The monetary system, based on the Newfoundland dollar, is governed by an act passed January 7, 1895. 

That act made all British coins legal tender. 

The coinage order of March 30, 1917, authorized silver coins, as 

shown in the following table: 

Denomination Fineness 

Gross 

weight in 

grams 

Legal 

tender 

limit 

50 cents 0.925 

.925 

.925 

.925 

.925 

11.6638 

5.8319 

4. 6655 

2.3328 

1.1664 

$10.00 

10.00 

10.00 

10.00 

10.00 

25 cents 

0.925 

.925 

.925 

.925 

.925 

11.6638 

5.8319 

4. 6655 

2.3328 

1.1664 

$10.00 

10.00 

10.00 

10.00 

10.00 

20 cents 

0.925 

.925 

.925 

.925 

.925 

11.6638 

5.8319 

4. 6655 

2.3328 

1.1664 

$10.00 

10.00 

10.00 

10.00 

10.00 

10 cents 

0.925 

.925 

.925 

.925 

.925 

11.6638 

5.8319 

4. 6655 

2.3328 

1.1664 

$10.00 

10.00 

10.00 

10.00 

5 cents _ _ . _ 10.00 

0.925 

.925 

.925 

.925 

.925 

11.6638 

5.8319 

4. 6655 

2.3328 

1.1664 

$10.00 

10.00 

10.00 

10.00 

10.00 

0.925 

.925 

.925 

.925 

.925 

11.6638 

5.8319 

4. 6655 

2.3328 

1.1664 

$10.00 

10.00 

10.00 

10.00 

10.00 

The order provided that old issues of Newfoundland coins continue to be legal tender. Silver coins may not be imported. 

Attitude toward silver.—There is no indication that Newfoundland intends to alter the present status of silver in its monetary 

system. 

Present employment of silver.—No old issues of Newfoundland 

coins are now in circulation. A small amount of British currency 

is normally to be found in use. 

NEW ZEALAND 

The monetary unit is the New Zealand pound, divided into 20 

shillings of 12 pence each. The New Zealand pound has a par 

value of approximately $4.8666, but is at present depreciated, being 

pegged to the pound sterling at a rate altered from time to time. 

The present rate is approximately £125 New Zealand per £100 

sterling. 

Present legal provisions.—The coinage system is the same as that 

of the United Kingdom, the coins being minted for New Zealand 

by the royal mints in Australia and England. The silver coins are 

0.500 fine. (For other details of the coinage, see United Kingdom.) 

An order-in-council prohibiting the import or export of silver 

coins, except with the consent of the Minister of New Zealand Customs, was passed on April 1, 1931. The Prime Minister stated that 

it had come to the knowledge of the Government that, on the one 

hand, Australian silver coin was being brought into New Zealand 

and, on the other hand, New Zealand silver coin, which is imperial 

coinage, was being sent to London for the purpose of avoiding the 

prevailing high rates of exchange. Unless steps were taken to check 

the growing practice of shipping silver coin overseas, he said, there 

would either be a shortage of silver or the Dominion would be 

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flooded with Australian coins, not legal tender in New Zealand. 

The order-in-council was revoked on July 23, 1931, and a new one 

promulgated, effective the same day, continuing the prohibition 

with only minor exceptions as stated in the new regulations. 

Possibility of increased use of silver without new legislation.— 

The monetary use of silver could not in practice be materially 

increased without important changes in the existing law. Theoretically, the use of silver coins might be increased by the withdrawal 

of 10-shilling notes now in circulation. It is estimated that there 

are from £250,000 to £300,000 of New Zealand 10-shilling notes outstanding. That these will' be withdrawn is unlikely, for, when they 

were temporarily withdrawn by the banks in 1930—as a protest 

against the Government's action in increasing the tax on the banks' 

note circulation from 3 to 4% percent per annum—there was a strong 

public outcry and ultimately the banks yielded to the demands of the 

public by reissuing the notes. (See United Kingdom.) 

Attitude toward silver.—Apart from the creation of a New Zealand 

coinage system, as mentioned below, there is no indication that any 

legislation likely to affect the use of silver in New Zealand is under 

consideration, and the question has not been discussed politically. 

Undoubtedly New Zealand will take no action along this line unless 

the step is instituted by Great Britain. The attitude of the country 

seems to be definitely opposed to bimetallism, and it is considered 

unlikely that the existing legal-tender limit of £2 on silver coins will 

be increased. 

In 1931 suggestions were made for the establishment of a mint in 

New Zealand. In view of the low prices at which silver and copper 

were obtainable, it was said that a very substantial saving could be 

made if the New Zealand Government established its own mint. A 

bill was introduced to that end by C. A. Wilkinson, M.P., who gave 

the following reasons for the proposed legislation:86 

The main reason for suggesting a state mint in New Zealand is that New 

Zealand should enjoy the full profit from the coins in place of Britain and 

Australia, whose coinage we are using here at the present time. Silver today 

is worth Is. Id. an ounce. Our present silver coinage to the value of 20s. 

contains 2 ounces of silver, and a certain quantity of alloy. We pay 19s. in 

the pound. The profit on the transaction is undeniable, for my bill provides 

for the purchase and minting of the same coinage at 3s. in the pound. 

It is estimated we have in the Dominion copper and silver coins to the value 

of £1,500,000, and we also import from £40,000 to £60,000 worth of silver and 

copper coins. It is readily seen the saving would be immense. 

According to a cablegram received from Assistant Trade Commissioner Eugene West, at Wellington, under date of March 8, 1933, a 

bill has been introduced to authorize the Minister of Finance to 

negotiate with the royal mint for a separate silver and copper coinage for New Zealand. On April 8, 1933, it was announced that the 

maximum amount of silver coin which may be taken out of New 

Zealand by travelers to the United Kingdom had been reduced from 

£10 to £5, and by travelers to other countries, from £5 to £2. 

Present employment of silver.—One estimate places the silver coin 

in circulation at the end of 1930 at £1,000,000 sterling. Coin held 

in the six banks of issue of New Zealand on August 15, 1932, totaled 

86 From a report by Consul General Calvin M. Hitch, Wellington, New Zealand, July 9, 

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£5,471,000, compared with note issues outstanding amounting to 

5,988,000 New Zealand pounds. On March 28, 1932, the banks' 

reserves consisted 87 percent of gold and 13 percent of silver, according to the League of Nations' Monthly Bulletin of Statistics. 

In August 1932 a report from Assistant Trade Commissioner 

Eugene West stated that during the preceding 10 months about 

£1,500,000 of specie, mostly gold, had been sent to England. Thus 

it was that coin held by the banks declined from £6,972,000 on October 19, 1931, to the figure mentioned above. Mr. West added: " It 

has long been considered by many in New Zealand that too much 

metal was being held in the reserves here. As of March 31, 1931, 

approximately 92 percent of the metallic reserve was gold. As of 

March 31,1932, about 88 percent of the reduced reserve was in gold." 

A press report from Wellington on April 19 stated that New 

Zealand banks had received notice from London that the Bank of 

England would no longer accept at par British silver coins shipped 

from New Zealand or Australia. 

NICARAGUA 

The monetary unit is the cordoba, divided into 100 centavos. 

The cordoba has a par value of $1. 

Present legal provisions.—Nicaragua's currency system is based 

on the monetary law of March 20, 1912, which became effective 

March 23, 1913. The National Bank of Nicaragua, owned by the 

Government, administers the currency. Both the right to, issue 

notes, and the coinage of currency are entrusted to that institution. 

The national bank is accorded " the preferential right to coin 

money of gold and silver or other metals or whatever money the 

Government agrees to put in circulation." No mention appears in 

the law as to the amount of silver which may be issued. 

There are no restrictions on the movement of silver into or out of 

Nicaragua. 

Details of the silver coinage, as given by the United States Bureau 

of the Mint, are shown in tlie following table:87 

Denomination Fineness 

Gross 

weight 

Legal 

tender 

limit 

Cordoba 0.900 

.800 

.800 

.800 

Grams 

25.00 

12.50 

6.25 

2. 50 

Cordobas 

10 

10 

10 

10 

50 centavos. 

0.900 

.800 

.800 

.800 

Grams 

25.00 

12.50 

6.25 

2. 50 

Cordobas 

10 

10 

10 

10 

25 centavos.. 

0.900 

.800 

.800 

.800 

Grams 

25.00 

12.50 

6.25 

2. 50 

Cordobas 

10 

10 

10 

10 centavos 10 

0.900 

.800 

.800 

.800 

Grams 

25.00 

12.50 

6.25 

2. 50 

Cordobas 

10 

10 

10 

10 

0.900 

.800 

.800 

.800 

Grams 

25.00 

12.50 

6.25 

2. 50 

Cordobas 

10 

10 

10 

10 

Possibility of increased use of silver without new legislation.— 

Under existing laws there is no limit imposed as to the amount of 

silver to be used for subsidiary currency. 

Attitude toward silver.—No legislation is contemplated that would 

affect the monetary use of silver in Nicaragua. 

According to Consul Samuel G. Ebling, the present amount of 

silver currency in circulation appears to meet the needs of the coun87 Monetary Units and Coinage Systems of the Principal Countries of the World, p. 6S. 

172120—33 7 

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try. The national bank reports that no complaints have been registered on this score, nor have any requests been received for an 

increased circulation of silver money. A preference is shown for 

paper currency owing to its convenience. It is the general opinion 

that the use of silver currency will not be increased. 

Present employment of silver.—The national bank reports that 

silver money in circulation in Nicaragua is valued at 306,836 cordobas. 

United States currency circulates in Nicaragua to a certain extent. 

Nicaraguan coins are minted in the United States. 

NORWAY 

The monetary unit is the krone (crown), divided into 100 ore. 

The krone has a par value of approximately $0.2680. 

Present legal provisions.—The coinage system is governed by the 

currency law of April 17, 1875, which has been several times 

amended by royal resolution. The most important amendment was 

that of June 16, 1920, which permits the use of copper-nickel alloy 

in the manufacture of subsidiary coin. Since 1920 no silver coin 

has been issued. 

Possibility of increased use of silver without new legislation.— 

The question as to whether silver might be used again for Norwegian coinage is difficult to answer. To restore the use of silver 

it would be necessary to have a royal resolution ordering the discontijiuance of the present base-metal coins and the minting of 

silver coins based on the old law of 1875. The only possibility under 

which such a resolution might be considered would seem to be 

through the introduction of a common system for the three Scandinavian countries—Norway, Sweden, and Deixmark. For the present the uncertain exchange situation makes such an eventuality very 

remote. 

Attitude toward silver.—No legislation is in prospect which would 

affect the monetary use of silver in Norway. There is no sentiment 

for bimetallism or the silver standard. 

Present employment of silver.—Although no Norwegian silver 

coins circulate in Norway, some Swedish and Danish silver coins 

are in use, since all three countries are members of the Scandinavian Monetary Union. A supplemental convention of the latter, 

dated March 22, 1924, discontinued the legal-tender status of the 

subsidiary coins of member countries except in the country of issue. 

Silver coin in circulation in Norway at the end of 1931 was reported as 24,900,000 kroner. 

NYASALAND 

The monetary unit is the pound, divided into 20 shillings. The 

pound has a par value of approximately $4.8666. 

British currency laws apply to Nyasaland. (See Northern Khodesia.) 

Present employment of silver.—At the end of 1931 the estimated 

total of silver coin in Nyasaland was £330,448, divided £144,219 in 

circulation and £186,229 in the hands of the Government. 

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PALESTINE 

The monetary unit is the Palestine pound, divided into 1,000 mils. 

The Palestine pound is pegged to the pound sterling and has a par 

value of approximately $4.8666. 

Present legal provisions.—The general provisions of the existing 

currency laws as they relate to the monetary use of silver are set 

out in the Palestine Currency Order, 1927. That order provides for 

two silver coins, both 0.720 fine—the 100-mil piece and the 50-mil 

piece. These weigh 180 and 90 grams, respectively, and are legal 

tender to the amount of £2. 

Issuance of the currency is controlled by the Palestine Currency 

Board, with offices in London. The treasurer of Palestine is the 

currency officer representing the board in Palestine. 

Possibility of increased use of silver without new legislation.—It 

is possible for the authorities to issue additional silver coins without 

new legislation, for the 1927 order does not limit the quantity, fineness, composition, and weight of silver coin of 100 mils and 50 mils 

in circulation. The quantity of silver coin in circulation is determined by the demand for such coin, and the composition of silver 

coin is subject to the approval of the Secretary of State. 

Attitude toward silver.—The Government favors the use of silver 

only in a subsidiary capacity. No legislation designed to affect the 

monetary use of silver is known to be contemplated. 

Present employment of silver.—At the end of 1932 silver coins in 

circulation totaled 287,000 Palestine pounds, made up of 1,450,000 

100-mil pieces and 2,850,000 50-mil pieces. 

PANAMA 

The monetary unit is the balboa, divided into 100 centavos. The 

balboa has a par value of slightly more than $1. 

Present legal provisions.—The monetary use of silver in the Republic of Panama is regulated by article 330 of the Fiscal Code. 

That article states that money cannot be issued except under special 

law of the Republic. The weights of the various silver coins are 

governed by law no. 84 of 1904, as amended in 1917 (law no. 62) 

and in 1930 (law no. 73). Under the earlier laws the silver coinage 

tended to be exported as bullion, the Panamanian coins being replaced in circulation by United States silver coins. In accordance 

with special treaty between Panama and the United States, law 73 

of 1930 authorized the issuance of coins of the same weight and 

fineness as the corresponding American ones, with the result that 

today the Panama silver balboa has the same weight and fineness as 

the American standard silver dollar. The silver coins, which are 

full legal tender for all debts, public and private, are thus all 0.900 

fine and have gross weights as folows: Balboa, 26.7296 grams; 50 

centavos, 12.5 grams; 25 centavos, 6.25 grams; and 10 centavos, 2.5 

grams. 

Decree No. 156, of September 20, 1932, on the coinage of silver 

coins reads as follows: 

Considering: Firstly—That, after having placed in circulation the new silver 

and nickel coins in pursuance of law no. 63 of 1917, there has been retired a 

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culating medium since July 31, last; Secondly—That the coins retired are to be 

melted in order to be converted into coins in accordance with the laws in force 

in this matter; and, Thirdly—That there is also a number of 2%-centesimo 

nickel coins which, owing to their denomination and diameter being equal to 

those of the 5-centesimo pieces, have been retired from circulation and must 

likewise be melted and recoined. 

It is decreed: 

Art. 1. Immediate coinage shall be undertaken of the amount of 78,000 balboas 

in subsidiary silver coins, 0.900 fine, with the denominations, weights, and 

diameters provided in artcile 2 of law no. 63 of 1917: 

Art. 2. Immediate coinage shall be undertaken of the amount of 16,640 balboas 

in 5-centesimo nickel coins. 

Art. 3. The treasury department shall proceed to take immediate measures 

for melting and recoining, in accordance with the preceding articles, the silver 

and nickel coins deposited at present in the national bank. 

Art. 4. The treasury department shall also take the necessary mesaures in 

order that the guaranty fund for the parity of the national money may be 

increased in the proportion required by the new issue of silver money, and 

the deposit shall be made not later than the date on which the new money 

begins to circulate. 

Possibility of increased use of silver without newh legislation— 

There is nothing in the law to prevent the issuance of additional 

silver coins. 

Attitude toward silver.—The Government intends to issue the 

coins obtained from the recoinage of the demonetized old issues of 

silver, amounting to 78,000 balboas, as provided in Decree No. 156 

of 1932. Beyond this, no silver coins are likely to be issued at 

any time in the near future, and no new legislation affecting the 

monetary use of silver is contemplated. 

Present employment of silver.—In accordance with the terms of 

the 1930 law, 532,000 balboas of silver currency have been issued, 

namely: 200,000 1-balboa pieces, 300,000 50-centavo pieces, 448,000 

25-centavo pieces, and 700,000 10-centavo pieces. Former silver coins 

have been demonetized, a quantity of them having been recently 

recoined in the United States. 

In order to guarantee the parity of the Panamanian silver coins 

in circulation, the Government must keep on deposit with the 

Bankers Trust Company of New York City a fund equivalent to 

15 percent of the gold value of such coins. On October 31, 1932, 

there was so deposited $77,400, or $2,400 short of the amount that 

should have been deposited, for the 532,000 balboas at present in 

circulation. This shortage was to be made up and further deposits 

made for the $78,000 about to be put in circulation as a result of 

recoinage.88 

It is noteworthy that American silver coins enjoy a wider circulation in Panama than do those of Panama. All major transactions are conducted on the basis of American money, for there is 

no Panamanian money in denominations higher than $1. Business 

in the Republic, including banking and accounting, is on the basis 

of the United States dollar, even though the term " balboa " is used 

by purely domestic organizations. 

Balboas 

%-balboa or 1-peso coins. 

%-balboa coins 

ro-balboa coins 

31, 500 

31, 500 

15, 000 

88 See pp. 75-76 of the memorandum presented by the Secretary of State of Panama to 

the National Assembly in its ordinary session of 1932. 

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PANAMA CANAL ZONE 

The monetary unit is the United States dollar, divided into 

100 cents. 

Present legal provisions.—The United States laws govern the 

ase of silver as currency. The new Panamanian coinage is also 

legal tender, according to a public notice of the executive secretary 

of the Canal Zone. 

PARAGUAY 

The monetary unit is the peso, divided into 100 centavos. The 

peso has a par value of approximately $0.0226. 

Present legal provisions.—The existing currency laws make no 

provision for the use of silver. There are no restrictions on the 

movement of silver into or out of the country. 

Possibility of increased use of silver without new legislation.— 

New legislation would be necessary for the issuance of silver coins 

by Paraguay. 

Attitude toward silver.—There is no prospect of legislation which 

is likely to bring about the use of silver in the currency system. 

Present employment of silver,—No silver is in circulation. 

PERSIA 

The monetary unit is the gold rial, divided into 100 dinars. 

The rial has a par value of approximately $0.2433. 

Present legal provisions.—The law of March 18, 1930, expressed 

Persia's purpose of adopting the gold standard, but the country has 

been unable to do so as yet. The first coins minted in accordance 

with this law made their appearance on March 21, 1932. Silver 

coins provided by this law as amended March 13, 1932, are shown 

in the table following: 

Denomination Fineness 

Net 

weight 

5 rials _ 0.828 

.828 

.828 

.828 

Grams 

20.70 

8.28 

4.14 

2. 07 

2 rials 

0.828 

.828 

.828 

.828 

Grams 

20.70 

8.28 

4.14 

2. 07 

1 rial 

0.828 

.828 

.828 

.828 

Grams 

20.70 

8.28 

4.14 

rial 2. 07 

0.828 

.828 

.828 

.828 

Grams 

20.70 

8.28 

4.14 

2. 07 

0.828 

.828 

.828 

.828 

Grams 

20.70 

8.28 

4.14 

2. 07 

Silver pieces are legal tender without limit. 

A provision of the law of March 13, 1932, obligates the Government to have in circulation silver coins in amounts equal to at least 

60 percent of the notes in circulation. Against the notes and nickel 

coins in circulation a reserve must be kept in gold, silver, and foreign 

exchange. 

There is no free coinage of silver. Persia is not on the silver 

standard, even though the gold standard has not yet been adopted. 

According to the currency law passed on March 13, 1932, " The 

exportation of gold and the importation of silver shall be effected 

with the special authorization of the Council of Ministers, through 

the national bank, whenever it may be deemed necessary to meet the 

established economic needs of the country." (By art. 3, par. 4, of 

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the new Persian exchange law of February 14, 1932, " the exportation of minted silver or silver bullion, unless with the authorization 

of the Government", is also forbidden.) The present Persian foreign trade monopoly law shows bar silver imports restricted. 

Possibility of increased use of silver without new legislation.—It 

would seem that silver rial coins may be issued by the Government 

without limit, according to the law. Notes, which the law permits 

to be secured by silver, may be issued by the national bank to a total 

of 340,000,000 rials, according to article 5 of the 1932 law, with the 

proviso mentioned above, that the Government have in circulation 

60 percent as much in the form of silver coin. 

Attitude toward silver.—The recent monetary legislation described 

above is in keeping with the Government's plans to adopt the gold 

standard and use silver as a subsidiary metal, whose value in circulation will be ultimately determined by the value of the gold rial. 

Present employment of silver.—In February 1932 it was reported 

that the Government would substitute rial coins for krans in the following manner: First, it would remint over 200,000,000 krans now 

in its possession or control. The resultant rials would then be used 

to retire an equal amount of krans now in circulation, and these coins 

in turn would then be cast into bars as security for the issuance of 

pahlevi notes of the National Bank of Persia equal to the value of 

this silver. (One pahlevi equals 100 rials.) The total stock of silver 

in Persia, including the above-mentioned 200,000,000 krans, was estimated at 550,000,000 krans. 

The amendment to the 1930 currency law, passed on March 13, 

1932, provided that the kran coinage should cease to be legal tender 

on September 23,1932. Meanwhile the national bank was authorized 

to exchange these coins for rial currency. So far, however, the kran 

coins have been only partially displaced from circulation by the rial 

currency.89 Accordingly it was recently announced in the press that 

krans would be legal tender until further notice. 

The kran silver coins are described by the United States Bureau 

of the Mint in the following table: 

Denomination Fineness 

Gross 

weight Denomination Fineness 

Gross 

weight 

5 krans __ __ 0.900 

.900 

.900 

Grams 

23. 0150 

9. 2060 

4. 6030 

10 shahis kran)... 0.900 

.900 

.900 

Grams 

2. 3015 

1.1507 

0. 5754 

2 krans - _ 

0.900 

.900 

.900 

Grams 

23. 0150 

9. 2060 

4. 6030 

5 shahis (M kran) _ 

0.900 

.900 

.900 

Grams 

2. 3015 

1.1507 

1 kran . . 0. 5754 

0.900 

.900 

.900 

Grams 

23. 0150 

9. 2060 

4. 6030 3 shahis 

0.900 

.900 

.900 

Grams 

2. 3015 

1.1507 

0. 5754 

0.900 

.900 

.900 

Grams 

23. 0150 

9. 2060 

4. 6030 

0.900 

.900 

.900 

Grams 

2. 3015 

1.1507 

0. 5754 

PERU 

The monetary unit is the sol, divided into 100 centavos. The 

sol has a par value of approximately $0.28. 

Present legal provisions.—Although the par value of the sol was 

altered on two occasions in recent years, the silver coins now in use 

find their authority in law no. 4471 of January 27, 1922. That 

law provided for the issuance of 7,046,932 soles in sol and halfsol pieces, 0.500 fine.90 The coins were made legal tender to 100 soles. 

89 Between March and October 1932 the Teheran mint turned out only 50,000,000 rials 

of new silver coins. 

90 The previous fineness was 0.900. 

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Law no. 4527 of September 28, 1922, authorized their issuance to a 

total of 23,000,000 soles. 

The monetary law of April 18, 1931, limited the legal tender of 

1-sol silver coins to 20 soles, and that of fractional silver coins to 5 

soles. It also provided that in payment of taxes such coins shall be 

receivable at par without limit as to quantity. 

The sol coin has a gross weight of 25 grams and the half-sol coin 

12y2 grams, these weights being based on the laws of February 14, 

1863, and December 30, 1872. 

The laws governing the central reserve bank (laws nos. 7137 of 

Apr. 18,1931, and 7538 of July 1,1932) contain two provisions giving 

the central bank important powers. Article 72, section 4 (as 

amended) provides that the Government will 

respect the judgment of the bank not to increase the circulation of fiduciary 

currency (i.e., coins of silver, nickel, copper, and other metals whose metallic 

value is substantially below their monetary value), when the directorate of 

the bank, with the affirmative vote of seven of its directors requests that such 

increase be not effected, on the grounds that the excess of fiduciary currency would render difficult the compliance of the bank's obligation to the 

public of maintaining the gold standard. In relation with this, section C of 

article 63 is likewise considered as contractual. 

To avoid appreciation in the gold value of the Peruvian monetary unit, the 

Central Reserve Bank of Peru shall pay out its own notes on demand in 

exchange for : 

[Sec. C] Peruvian coins of silver and nickel, which now lawfully circulate, 

at par, without limit as to quantity, when said coins are presented for exchange for its notes in sums of 10 soles or multiples thereof, at the head office 

of the bank in Lima, and at all of the bank's branches. 

If, at the end of the year the board of directors of the bank, by an affirmative vote of seven or more members, shall declare that, in their judgment, the 

amount of silver and/or nickel coins in circulation is in excess of the requirements of trade and that the central reserve bank, in compliance with the requirements of this chapter, has been burdened with an excessive amount of 

such coins which it is holding in its vaults, the bank shall, as the agent of 

the Government and under .the supervision required by law, break up and 

destroy said excess of coin, and, at the option of the Government, either sell in 

the market the metal proceeds thereof or turn them over to the Government. 

Any loss that may result to the bank from carrying out of the provisions of this 

paragraph shall be charged against the profits accruing to the Government under 

the provisions of article 77 of this law. 

It will thus be seen that the Banco Central has a very effective veto 

power so far as any increase in the fiduciary currency is concerned. 

According to the regulations governing the central bank, as 

amended in February 1933, the bank's notes and deposits must be 

secured by a 50 percent reserve of gold and gold-exchange, bank 

acceptances, and Peruvian silver coins, the latter not to exceed one 

tenth of the reserve. 

Possibility of increased use of silver without new legislation.— 

Within the limits of the 1922 legislation the Government may issue 

4,946,584 soles in silver, thus using approximately 1,988,000 fine 

ounces of silver. 

Attitude towurd silver.—There is no prospective legislation which 

is likely to affect the monetary use of silver. Early in 1932 it was 

said that the Government was considering the issuance of more 

silver. The present directorate of the central reserve bank is 

strongly opposed to any such increase. Therefore, although the 

Government in an extremity might bring pressure on the bank to 

consent to an increase in the silver coinage, such a step seems unlikely. 

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The central reserve bank can easily show that additional subsidiary currency is not necessary inasmuch as over 6,000,000 soles in 

silver are held in its vaults. 

Silver is unquestionably preferred by the Indians, who compose 

the bulk of population in the highlands and trans-Andean sections 

of the country. On the other hand, even in prosperous times the 

need for circulating media, except in the mining sections, is not 

great; and present prices of the commodities raised in those regions 

are so low that the volume of silver and other fractional currency 

required is smaller than ever. 

Present employment of silver.—Silver coins outstanding at the 

end of 1932 were reported as 18,053,416 soles, there having been no 

coinage during that year. From the figures in the following table 

may be traced the changes in the circulation of silver in recent 

years. While the country was on the gold-exchange standard the 

use of coins declined. 

SILVER AND NICKEL COINS 

[In thousands of soles] 

End of— 

Total outstanding 

Held in 

central 

reserve 

bank 

Held in 

other 

banks 

Held by 

general 

public 

1920 2,212 

14,606 

18,009 

19, 329 

20,843 

22,377 

23, 743 

24, 053 

24,053 

1,195 

1,079 

894 

952 

1,132 

1,' 654 

2, 668 

1, 265 

601 

1, 017 

13, 527 

17,115 

18,377 

19,711 

20, 723 

21,060 

18,070 

17,433 

1925 

2,212 

14,606 

18,009 

19, 329 

20,843 

22,377 

23, 743 

24, 053 

24,053 

1,195 

1,079 

894 

952 

1,132 

1,' 654 

2, 668 

1, 265 

601 

1, 017 

13, 527 

17,115 

18,377 

19,711 

20, 723 

21,060 

18,070 

17,433 

1926 

2,212 

14,606 

18,009 

19, 329 

20,843 

22,377 

23, 743 

24, 053 

24,053 

1,195 

1,079 

894 

952 

1,132 

1,' 654 

2, 668 

1, 265 

601 

1, 017 

13, 527 

17,115 

18,377 

19,711 

20, 723 

21,060 

18,070 

17,433 

1927 

2,212 

14,606 

18,009 

19, 329 

20,843 

22,377 

23, 743 

24, 053 

24,053 

1,195 

1,079 

894 

952 

1,132 

1,' 654 

2, 668 

1, 265 

601 

1, 017 

13, 527 

17,115 

18,377 

19,711 

20, 723 

21,060 

18,070 

17,433 

1928 

2,212 

14,606 

18,009 

19, 329 

20,843 

22,377 

23, 743 

24, 053 

24,053 

1,195 

1,079 

894 

952 

1,132 

1,' 654 

2, 668 

1, 265 

601 

1, 017 

13, 527 

17,115 

18,377 

19,711 

20, 723 

21,060 

18,070 

17,433 

1929 

2,212 

14,606 

18,009 

19, 329 

20,843 

22,377 

23, 743 

24, 053 

24,053 

1,195 

1,079 

894 

952 

1,132 

1,' 654 

2, 668 

1, 265 

601 

1, 017 

13, 527 

17,115 

18,377 

19,711 

20, 723 

21,060 

18,070 

17,433 

1930 

2,212 

14,606 

18,009 

19, 329 

20,843 

22,377 

23, 743 

24, 053 

24,053 

15 

4,718 

6, 019 

1,195 

1,079 

894 

952 

1,132 

1,' 654 

2, 668 

1, 265 

601 

1, 017 

13, 527 

17,115 

18,377 

19,711 

20, 723 

21,060 

18,070 

17,433 

1931 

2,212 

14,606 

18,009 

19, 329 

20,843 

22,377 

23, 743 

24, 053 

24,053 

15 

4,718 

6, 019 

1,195 

1,079 

894 

952 

1,132 

1,' 654 

2, 668 

1, 265 

601 

1, 017 

13, 527 

17,115 

18,377 

19,711 

20, 723 

21,060 

18,070 

17,433 1932 (Sept.)---

2,212 

14,606 

18,009 

19, 329 

20,843 

22,377 

23, 743 

24, 053 

24,053 

15 

4,718 

6, 019 

1,195 

1,079 

894 

952 

1,132 

1,' 654 

2, 668 

1, 265 

601 

1, 017 

13, 527 

17,115 

18,377 

19,711 

20, 723 

21,060 

18,070 

17,433 

2,212 

14,606 

18,009 

19, 329 

20,843 

22,377 

23, 743 

24, 053 

24,053 

15 

4,718 

6, 019 

1,195 

1,079 

894 

952 

1,132 

1,' 654 

2, 668 

1, 265 

601 

1, 017 

13, 527 

17,115 

18,377 

19,711 

20, 723 

21,060 

18,070 

17,433 

The employment of silver on a large scale could only come about 

through the disappearance of the present gold reserve, and a complete breakdown of the present currency system. That this could 

happen in case of a long-drawn-out international conflict is undoubted. On the other hand the return to reasonably normal and 

profitable world raw-material prices would probably bring about 

the reestablishment of the gold-exchange standard in Peru, with 

silver occupying its present role as a subsidiary medium of exchange. 

PHILIPPINE ISLANDS 

The monetary unit is the peso, divided into 100 centavos. The 

peso has a par value of $0.50. 

Present legal provisions.—The basic monetary law is that of March 

2, 1903, which established the gold-exchange standard and, among 

other things, provided for additional subsidiary silver coins of 

various denominations.91 By its terms, the peso silver piece is full 

legal tender, unless otherwise specifically provided by contract. The 

other silver coins are legal tender for not more than 20 pesos. The 

91 For a time following the World War (i.e., 1918-22) the gold-exchange standard was 

suspended in the Philippines, but was restored by Act No. 3058 of June 13, 1922, which 

separated the gold-standard and treasury-certificate funds. 

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recoinage act of June 23, 1906, lowered the weights and fineness of 

the silver coins.92 

Philippine silver coins are as shown in the following table: 

Denominations Fineness Gross 

weight 

1 peso - ~ -- 0.800 

.750 

.750 

.750 

Grams 

20 

10 

4 

2 

50 centavos -

0.800 

.750 

.750 

.750 

Grams 

20 

10 

4 

2 

20 centavos. -

0.800 

.750 

.750 

.750 

Grams 

20 

10 

4 

10 centavos. - 2 

0.800 

.750 

.750 

.750 

Grams 

20 

10 

4 

2 

0.800 

.750 

.750 

.750 

Grams 

20 

10 

4 

2 

According to Act No. 3058, approved June 13, 1922, Philippine 

coins— 

at the request of the insular treasurer and with the approval of the secretary 

of finance and of the Governor General * * * may be coined in the amounts 

necessary to meet the legitimate demands of commerce. 

The coinage may be executed in the mint of the Philippine Islands, or in 

any of the mints of the United States, by contract between the Government of 

the Philippine Islands and the Secretary of the Treasury of the United States, 

upon the recommendation of the secretary of finance and the order of the 

Governor General, for which purpose the reasonable cost of the work shall be 

paid. The secretary of finance, with the approval of the Governor General, 

shall prescribe the designs and inscriptions for said coins, showing that they 

are of the Philippine Islands, their value, and the year of coinage. 

Philippine coins having greater weight or fineness than those prescribed 

herein, if paid to any Government office or treasury or to any bank doing 

business in the Philippine Islands, or Philippine coins mutilated or otherwise 

unfit for circulation, if paid into any treasury of the government, shall not be 

reissued but shall be retained for recoinage in accordance with this law. 

According to the law, the treasurer of the Philippine Islands is 

authorized to receive silver pesos and half-pesos in sums of not less 

than 20 pesos, and issue treasury certificates therefor. These certificates are redeemable in silver pesos and half-pesos on demand. The 

reserve behind this money is known as the treasury-certificate fund. 

If at any time the government's supply of silver coin (other than in 

this fund) is insufficient to meet the legitimate demands for trade, 

United States gold coin or other United States currency may be 

substituted and silver coin released from the treasury-certificate 

reserve. 

The Philippine National Bank, established in 1916, must keep a 

331/3 percent reserve against its note circulation, in lawful money of 

the Philippine Islands. Redemption of the circulating notes of the 

-Philippine National Bank is guaranteed by the Government of the 

Philippine Islands by virtue of Act No. 3174 of November 24, 1924. 

The administrative code of 1917 (Act No. 2711) provides: 

SEC. 2710. Unlawful exportation of coin or "bullion.—It shall be unlawful to 

export or attempt to export from the Philippine Islands any Philippine silver 

money coined under the authority of any law of the United States, or bullion 

made therefrom, except as such money may be carried away by departing 

travelers in ordinary course and in sums not exceeding 25 pesos or as such 

coin or bullion may be exported in the course of the lawful operations of the 

Philippine Treasury * * *. 

92 For the history of this legislation see Modern Currency Reforms, by Ed^ in Walter 

Kemmerer (New York, 1916). 

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SEC. 2711. Unlawful importation of silver coin.—It shall be unlawful to import or to attempt to import into the Philippine Islands silver money not on a 

gold basis, except as the same may be brought in by incoming passengers in 

ordinary course of travel and in sums not exceeding 50 pesos for the first-class 

passenger, 20 pesos for the second-class passenger, and 10 pesos for the thirdclass passenger. 

No prohibition exists on the importation of foreign notes or subsidiary coins other than silver. 

Possibility of increased me of silver without new legislation.—Additional silver coin may be issued whenever the government desires. 

Attitude toward silver.—No legislation is contemplated which 

would affect the monetary use of silver. 

Present employment of silver.—On November 29, 1932, money in 

circulation in the Philippines was as follows: 

Issued: Pesos 

Silver pesos 21,889,679 

Silver half pesos 6, 272, 494 

Other silver subsidiary coins 9,427, 424 

Minor coins 2, 929,124 

Total 40,518,721 

Less amount in treasury vaults pertaining to general and other miscellaneous funds: 

Silver pesos 16,899,978 

Silver half pesos 3, 512,172 

Other silver subsidiary coins 1, 958, 432 

Minor coins 174, 097 

Amount estimated destroyed 100, 000 

Total 22, 644, 679 

Net circulation 17, 874, 042 

Treasury certificates: Net amount in circulation 53,163, 439 

Bank notes: Net amount in circulation 9, 894, 024 

Total net circulation, Nov. 29, 1932 87, 479, 688 

Limited quantities of United States silver coins are in use. 

Treasury certificates are issued against deposits of silver coin 

and gold. The treasury-certificate reserve therefore includes silver, 

as the following statement for November 29, 1932, shows: 

TREASURY CERTIFICATE FUND, BALANCE SHEET, NOVEMBER 29, 193 2 

ASSETS 

Pesos 

Cash 80,670,267 

LIABILITIES 

Reserve for treasury certificates outstanding 80, 670, 267 

Cash in treasury vaults— Pesos 

Silver pesos 3,158,288 

Silver half pesos 3,184, 372 

6,342,660 

On deposit with authorized depositories in the United States 74,327,607 

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POLAND 

The monetary unit is the zloty,93 divided into 100 grosze.94 The 

zloty has a par value of approximately $0.1122. 

Present legal provisions—The presidential decree of January 20, 

1924, provided for silver 5-, 2-, 1- and i/o-zloty pieces, the first mentioned 0.900 fine and the rest 0.835 fine. In accordance with these 

specifications, 2- and 1-zloty coins were struck in Paris, London, 

and the United States. 

Decrees Nos. 789 and 790 of October 13, 1927, limited the coinage 

of silver, nickel, and copper to 320,000,000 zlote, of which by specific 

provision at least 140,000,000 zlote were to be of silver. It was provided, however, that the limit of 320,000,000 zlote

 95 could be exceeded when deemed necessary by the Bank of Poland. Subsequently provision was made for the issuance of 2- and 5-zloty silver 

pieces weighing 10 and 18 grams, respectively, and not less than 

0.500 fine. The coins as manufactured have these weights, the fineness of the 5-zloty coin being 0.750 and that of the 2-zloty coin 

0.500.95 

Decree No. 674 of August 20, 1932, demonetized the 1-zloty silver 

coin which had been authorized in 1924. 

Decree No. 668 of August 27, 1932, authorized the minting of 

silver in three denominations, to be smaller in size than the silver 

coins then current. This decree limited the legal tender of the new 

silver coins. Details were specified as follows: 

Denomination Fineness 

Gross 

weight 

Legaltender 

limit 

10 zlote 0.750 

.750 

.750 

Grams 

22.0 

11.0 

4.4 

Zlote 

1,000 

500 

100 

5 zlote 

0.750 

.750 

.750 

Grams 

22.0 

11.0 

4.4 

Zlote 

1,000 

500 

2 zlote 100 

0.750 

.750 

.750 

Grams 

22.0 

11.0 

4.4 

Zlote 

1,000 

500 

100 

0.750 

.750 

.750 

Grams 

22.0 

11.0 

4.4 

Zlote 

1,000 

500 

100 

Decree No. 798 of October 25, 1932, retired the 2-zloty silver coins 

which had been authorized in 1924, the demonetization to take effect 

January 31, 1933. The decree provided: " Beginning with July 1, 

1933, and up to January 31,1935, the aforesaid coins shall be changed 

and accepted in payment of all debts at official banks and branches 

of the Bank of Poland. The above obligation to exchange coins 

shall be void after January 31, 1935." 

Decree No. 878 of November 30, 1932, provided that there be 

coined 5-zloty pieces. 

The Bank of Poland is permitted to keep silver in its reserve 

against notes and other demand liabilities. Ordinarily the bank is 

expected to hold either 30 percent in gold or 40 percent in goldT 

foreign exchange, and silver. In this case silver may not exceed 

one twentieth of the gold held.97 

93 Plural: " zlote." 

04 Singular : 44 groszy." 

95 Based upon 12 zlote per capita and the 1921 census of population. 

06 Monetary Units and Coinage Systems of the Principal Countries of the World, 1929, 

p. 75. 

97 Federal Reserve Bulletin, July 1932, p. 437. 

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Possibility of increased use of silver without new legislation.— 

Under the law of 1927, the maximum coinage may be increased 

" as the Government and the Bank of Poland recognize the necessity therefor." 

Attitude toward silver.—Since the circulation of coin is based 

upon a limit of 12 zlote per capita and Poland's population is now 

estimated at 33,000,000, the total metallic circulation can be raised 

to 396.000,000 zlote. The Bank of Poland, whose approval of any 

increase is necessary under the 1927 law, is said to have given its 

consent to this increase. The same can be effected without the purchase of new silver, it is believed, through the substitution for existing coins of coins lower in fineness. 

Should it become necessary to exceed the limit of 396,000,000 

zlote, parliamentary authorization would probably have to be secured, even were the Bank of Poland to approve such step. Assurances have been given, however, that such an emergency is not 

likely to occur, at least in the immediate future, and that no further 

legislative projects are being considered which would affect, as to 

quantity of metal, the monetary use of silver. 

Present employment of silver.—On March 31, 1930, the monetary 

stock of silver coins was reported as 65,604,165 zlote of 5-zloty pieces, 

and 46,701,926 zlote of 2-zloty pieces, a total of 112,306,091 zlote. 

Apart from this, there was an unknown quantity of old 1-zloty 

coins, although these were in process of withdrawal. On June 30, 

1932, the corresponding total was reported to be 183,300,000 zlote. 

The active circulation of silver coins was, in June 1932, reported 

to be as follows: 

Denomination Thousands 

of pieces 

Face value 

thousands 

of zlote 

5 zlote _ _ . . _ _ _ _ _ _ _ 5,462 

23,974 

23, 254 

27,310 

47,948 

23, 254 

2 zlote. - . . _ _ 

5,462 

23,974 

23, 254 

27,310 

47,948 

1 zloty ______ _ __ _ _ ___ ___ 23, 254 

5,462 

23,974 

23, 254 

27,310 

47,948 

23, 254 

Total 98, 512 

This compares with a note circulation of 1,105,000,000 zlote. In 

February 1933 the Ministry of Finance reported that silver put 

to monetary use in Poland from 1924 to 1928, inclusive, totaled 

19,843,438 fine ounces. 

PONDICHERRY 

The monetary unit is the British Indian rupee, divided into 16 

annas. The British Indian rupee has a par value of approximately 

$0,365. 

British Indian coinage is used in Pondicherry. Rupee notes are 

issued by the Banque de l'lndochine. 

PORTUGAL 

The monetary unit is the eseudo, divided into 100 centimos. 

The escudo has a par value of approximately $0.0442. 

Present legal provisions.—The provisions of the existing currency 

laws as they relate to the monetary use of silver may be found in 

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103 monetar y us e o f silve r in" 19 3 3 

decrees 19869, 19870, and 19871, published in the Diario do Governo 

June 9, 1931, and taldng effect July 1. Article 3 of decree no. 19869 

provided for the substitution of silver coins for small notes of the 

Bank of Portugal, details to be fixed in a special decree. This 

decree, and article 2 of decree no. 19871, in providing that subsidiary 

silver money for use on the continent and adjacent islands shall be 

coined by the Portuguese Mint, specify the following silver coins, all 

limited to 200 escudos in legal tender: 

Denomination Fineness 

Gross 

weight 

10 escudos . _ . - _ 0.835 

.650 

.650 

Grams 

12.5 

7.0 

3.5 

5 escudos.- - - - _ 

0.835 

.650 

.650 

Grams 

12.5 

7.0 

23^2 3.5 escudos _ _ .. _ _ _ _ _ _ _ _ _ _ _. _. _ 

0.835 

.650 

.650 

Grams 

12.5 

7.0 

3.5 

0.835 

.650 

.650 

Grams 

12.5 

7.0 

3.5 

The currency decree of June 9, 1931, directed that silver coins 

with a nominal value of 2%, 5, and 10 escudos, be issued for the 

account of the state in place of Bank of Portugal notes of like denominations, said coins to enter into circulation before December 

31, 1933. The amount of the silver issue was to be fixed by an agreement between the Portuguese Government and the Bank of Portugal, 

and the coins were to enter into circulation through the Bank of 

Portugal. 

Coinage and issuance (through the bank) of silver money are 

reserved to the State under the terms of article 3 of decree no. i987l. 

Article 5 of decree no. 19871 reads as follows: 

The silver required for coinage of the money shall be acquired in public 

competition or through direct purchase by the treasury, and use shall be made 

of silver on hand in the bureau of minting and engraving, as well as of coin 

on deposit in the same, and of that which shall be called in, pursuant to the 

present decree. 

Article 9 has to do with the calling in of old silver coins for 

reminting. 

Possibility of increased use of silver without new legislation.— 

It is difficult to say to what extent silver coins may be issued without 

amending existing laws. Silver coins are to be issued in place of 

notes of the Bank of Portugal and, while no figures are available to 

show the coins already issued, the number of coins to be issued under 

authority of decree no. 19871 was as follows: 6,500,000 10-escudo 

pieces; 5,000,000 5-escudo pieces; and 4,000,00 2^2-escudo pieces; a 

total of 100,000,000 escudos. These coins are all scheduled to be in 

circulation by the end of 1933. 

It is believed that once the maximum of silver circulation authorized by decree no. 19871 has been reached, Portugal is not likely 

to employ further silver in its currency system unless special need 

arises. The following excerpt from a statement made by the Minister of Finance, relative to stabilization of the escudo in 1931, may 

be taken to illustrate the country's attitude toward the employment 

of silver in the currency system. 

The depreciation of the currency brought a certain inversion of functions, 

so that we have today Bank of Portugal notes—those of 2V2, 5, 10, and 20 

escudos—playing the role that, before our currency fall, was taken by metallic 

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monetar y "us e o f silve r i n 19 3 3 104 

money. This was one reason for the great insufficiency of the bank's circulation in the past, but it must not be so in the future, so that at least the notes 

of less value must be taken from circulation and complete the circulation with 

silver coin, indispensable for small payments. The preference the public shows 

for paper notes has up to now stopped the proposal of the substitution of 

20-escudo notes, although they represent a real value inferior to the escudo 

or to the " milreis " previous to 1911. Even with this exception, the circulation 

of paper notes will be more correct, and this as well as metallic money will 

be correctly kept within their respective functions. 

Attitude toward silver.—No legislation is contemplated which 

would affect the monetary use of silver in Portugal. 

Present employment of silver.—Silver coins in circulation on 

October 31,1932, were as shown in the following statement: 

Esoudos 

2% escudos 5,480,000 

5 escudos 2,000, 000 

10 escudos 23, 000, 000 

10 escudos98 2,000,000 

Total 32, 480, 000 

On the same date the Bank of Portugal's note circulation was 

approximately 1,906,000,000 escudos. 

PORTUGUESE GUINEA 

The monetary system of Portugal applies to Portuguese Guinea. 

REUNION 

The monetary unit is the Reunion franc (franc reunionais), 

divided into 100 centimes. The par value of the Reunion franc 

is approximately $0.0392. 

Present legal provisions.—There is no legal provision for the 

monetary use of silver. 

Possibility of increased use of silver without new legislation.— 

New legislation would be necessary before silver could be put into 

circulation. 

Attitude toward silver.—See France. 

Present employment of silver.—No silver circulates in Reunion. 

RHODESIA, NORTHERN 

The monetary unit is the pound, divided into 20 shillings of 12 

pence each. The pound has a par value of approximately $4.8666. 

Present legal provisions.—In general, the British monetary system applies in Northern Rhodesia. 

According to ordinance no. 25 of 1932, "An ordinance further to 

amend the bank notes and coinage ordinance, 1931the Governor of 

Northern Rhodesia, with the advice and consent of the Legislative 

Council, promulgated the following enactment: 

It shall be lawful for the Governor, with the approval of a secretary of 

state, to declare by proclamation that silver coins issued by the Government of the Colony of Southern Rhodesia and declared to be legal tender 

by that Government within the Colony shall be current in the territory, and 

the tender of payment in money in that territory, if made in any of those 

coins shall, if the coins have not been illegally dealt with, be a legal tender 

for any amount not exceeding £2 sterling in value. 

98 Special issue commemorating the Battle of Ourique. 

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The purpose of this ordinance was described by the Acting Attorney General late in 1932, as follows: 

The Colony of Southern Rhodesia has recently passed an act (no. 24 of 1932) 

empowering the Governor to issue gold, silver, bronze, and nickel coins. 

Nyasaland and this territory have agreed to make legal tender such Southern 

Rhodesia silver coins as are of sterling denominations. 

According to The Gold and Silver Restriction (amendment) 

Regulations 1932: 

No person shall export gold or silver in the form of coin to any destination 

beyond the boundaries of the territory except (a) personal cash not exceeding 

£5 in gold and £2 in silver in the possession of any one individual leaving 

the territory; or (&) with the written permission of the Governor. 

Government Notice No. 24 of February 22, 1933, entitled " The 

Exportation of Gold and Silver Ordinance (chap. 120 of the Revised Edition)", provided for the cancelation of Government Notices 

Nos. 132 of 1931 and 2 of 1933. 

Possibility of increased use of silver without new legislation— 

The Governor may readily issue proclamations affecting the monetary use of silver. 

Attitude toward silver.—The attitude of the Governor toward the 

monetary use of silver is presumably in accordance with that of the 

British Government. 

Present employment of silver.—Silver in the currency system is 

limited to subsidiary coinage. 

RHODESIA, SOUTHERN 

The monetary unit is the pound, divided into 20 shillings of 

12 pence each. The pound has a par value of approximately 

$4.8666. 

Present legal provisions.—In general the British monetary system 

applies in Southern Rhodesia. 

The Coinage Act (No. 34) promulgated June 3, 1932, went into 

effect September 9, 1932. It provided that Southern Rhodesia, 

British, and Union of South Africa silver coins " of the present issue 

of current weight" should be legal tender to not over 40 shillings. 

The schedule contained in the Coinage Act gives the following 

particulars concerning silver coins, and all such coins made for 

Southern Rhodesia must conform to this schedule. 

Denomination Fineness 

Gross 

weight 

Half-crown _ 0.925 

.925 

.925 

.925 

.925 

Grams 

14.13795 

11.31036 

5.65518 

2. 82759 

1. 41379 

Florin 

0.925 

.925 

.925 

.925 

.925 

Grams 

14.13795 

11.31036 

5.65518 

2. 82759 

1. 41379 

Shilling 

0.925 

.925 

.925 

.925 

.925 

Grams 

14.13795 

11.31036 

5.65518 

2. 82759 

1. 41379 

Sixpence 

0.925 

.925 

.925 

.925 

.925 

Grams 

14.13795 

11.31036 

5.65518 

2. 82759 

Threepence 1. 41379 

0.925 

.925 

.925 

.925 

.925 

Grams 

14.13795 

11.31036 

5.65518 

2. 82759 

1. 41379 

0.925 

.925 

.925 

.925 

.925 

Grams 

14.13795 

11.31036 

5.65518 

2. 82759 

1. 41379 

In October 1931 an act limiting the export of gold and silver to 

£5 each for persons leaving the country was enacted. In May 1932, 

due to the serious drain of silver to the Union of South Africa, the 

limit on silver was reduced to £2 per person. When British silver 

was deprived of legal tender in the Union its face value the inducement to export such coins from Rhodesia was removed. On 

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106 monetar y "us e o f silve r i n 19 3 3 106 

January 13, 1933, removal of the embargo on the exportation of 

silver coin (instituted in 1931) was announced. 

Possibility of increased use of silver without new legislation.— 

According to the Coinage Act of 1932, the governor may cause to be 

made and issued silver coins of the denominations specified in the 

schedule to the act. Only the governor may order coinage or revoke 

or alter any proclamation previously issued regarding coinage. 

Attitude toward silver.—The attitude of the governor toward the 

monetary use of silver is presumably in accordance with that of the 

British Government. 

In 1933 a bill was introduced to repeal the Coinage Act of 1932. 

The bill would give the governor full power to issue coin and provides that he may make regulations— 

{a) For the establishment of a "coinage fund" to provide for the rehabilitation or withdrawal of any issue of coins made under this act; 

(6) Authorizing the payment of seigniorage to other colonies and British 

protectorates to which coins issued under this act may be exported and accepted 

as legal tender. 

Present employment of silver.—In the latter part of 1931 there 

was a considerable shortage of subsidiary silver in Southern Rhodesia due to the profit to be made by shipping British silver coins 

into the Union of South Africa, whose currency stood at a premium 

in terms of the pound sterling. Following the enactment of the 

Coinage Act of 1932, a shipment of £30,000 of British silver coins 

was received from London, and £110,000 of Southern Rhodesian silver coins ordered from the royal mint in London." 

The coins of Southern Rhodesia bear distinctive designs. 

At the end of 1931 total silver in Southern Rhodesia was estimated 

at £440,000, of which £400,000 was in circulation and £40,000 in 

banks. 

RIO DE ORO 

The monetary system of Spain applies to Rio de Oro. 

RUMANIA 

The monetary unit is the leu (plural lei), divided into 100 bani. 

The leu has a par value of approximately $0,006. 

Present legal provisions.—For a number of years prior to 1932 

no silver circulated in Rumania. A comparatively small amount 

of silver currency was issued under the law of April 17, 1880, as 

amended in 1886, 1901, and 1925. During the German occupation all 

silver coins found were confiscated and there followed a period of 

years when no silver coins circulated, although a limited amount 

remained in peasant hoards. 

The general monetary law, which dates from February 7, 1929, 

was amended December 19, 1931, to provide for the issuance of 

100-leu silver coins to a total of 1,840,000,000 lei, the coins to weigh 

14 grams, 0.500 fine, and to be legal tender in payments not exceeding 5,000 lei. These coins were issued by the Ministry of Finance 

in September. 1932. 

The 1931 law further provided that silver coins minted prior to 

1916 should no longer be legal tender, but that they should be re09 Charge d'Affaires Ernest L. Ives, Pretoria, Sept. 20, 1932. 

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deemable at the national bank at the market value of their silver 

content. 

Possibility of increased use of silver without new legislation.— 

No additional silver could be issued without new legislation. 

Attitude toward silver.—No legislation which would increase the 

use of silver is planned. The peasants seem to prefer silver to paper 

money and hoard it, but other classes show no preference for the 

metal. 

Present employment of silver.—The 1,840,000,000 lei of silver in 

circulation represent approximately 4,141,000 fine ounces of silver. 

The silver circulation compares with the National Bank of Rumania's note issue of approximately 20,974,000,000 lei in November 

1932. Other coin in circulation on March 15, 1930—the latest information available—approximated 433,000,000 lei. 

During 1932 the French mint struck 2,000,000 100-leu silver pieces 

for Rumania. 

SALVADOR, EL 

The monetary unit is the colon, divided into 100 centavos. The 

colon has a par value of approximately $0.50. 

Present legal provisions.—The present silver coinage is governed 

by the legislative decrees approved September 11, 1919, July 16, 

1920, and March 10, 1921. Prior to the enactment of the decree of 

1919 there were in circulation silver 5-, 10-, 20-, 25-, 50-, and 100-

centavo coins. The latter decree provided that the 5-, 10-, and 

20-centavo silver coins then in use should continue to circulate as 

subsidiary currency but did not mention the 25-, 50-, and 100-

centavo denominations. The change from silver to a gold basis 

was covered by articles 3 and 4 of the decree. Article 3 provided: 

" The new standard being gold, the present national or foreign silver currency is hereby declared demonetized." 

With respect to the use of silver as legal tender in making payments of any kind, article 8 of the decree of 1920 provided that 

national silver in 20-, 50-, and 100-centavo denominations must be 

accepted up to 10 percent of any payment, but it did not mention 

the 5-, 10-, and 25-centavo coins. Furthermore, it provided that the 

national treasury and other fiscal offices must accept any quantity 

of silver in payment of taxes or duties. However, article 2 of the 

1921 decree provided for the reinstatement as legal tender of all 

the 5-, 10-, 20-, 25-, 50-, and 100-centavo silver coins which had been 

in use since before 1910 until the coining of the subsidiary denominations mentioned in the decree of 1919 should be effected. 

All six denominations remain in use today; the old issues of Salvadorean silver coins are now legal tender and are accepted everywhere in El Salvador on a parity with' the newer coins. 

The fineness and the net weight in grams of the Salvadorean 

silver coins in use at the present time are shown in the following 

table: 

Denomination Fineness 

Net ! 

weight Denomination Fineness 

Net 

weight 

100 centavos 0.900 

.900 

.835 

Qrams 

25.00 

12. 50 

6.25 

20 centavos 0.835 

.835 

.835 

Qrams 

5.00 

2. 50 

1.25 

50 centavos _ 

0.900 

.900 

.835 

Qrams 

25.00 

12. 50 

6.25 

10 centavos 

0.835 

.835 

.835 

Qrams 

5.00 

2. 50 

25 centavos 1.25 

0.900 

.900 

.835 

Qrams 

25.00 

12. 50 

6.25 5 centavos 

0.835 

.835 

.835 

Qrams 

5.00 

2. 50 

1.25 

0.900 

.900 

.835 

Qrams 

25.00 

12. 50 

6.25 

0.835 

.835 

.835 

Qrams 

5.00 

2. 50 

1.25 

172120—33 8 

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The coinage of the 25-centavo piece was authorized sometime before 

1910, and of the others about 1892. 

American silver money was declared legal tender for El Salvador 

by article 10 of the 1920 decree and it has been stated by local 

authorities that it must be accepted up to 10 percent of any payment 

on the same basis as Salvadorean silver money. At present American silver coins circulate in El Salvador to only a very limited 

extent. 

A definite limitation appears to have been placed on the coining 

of silver in El Salvador by article 9 of the 1920 decree, "which 

provided that such coinage shall not exceed 10 percent of the 

total fiduciary circulation. 

The general provisions of the existing currency laws, as they 

relate to the monetary use of silver, are to be found in the 1926 publication of the " Constitucion y Codigos de la Republica de El Salvador on pages 748 to 761. The volume contains the basic legislative and executive decrees on the subject. 

Possibility of increased use of silver without new legislation.— 

It is believed that approximately 100,000 fine ounces troy of silver 

could be minted and issued without amending the existing laws. 

Attitude toward silver.—So far as is known there is no prospective 

Salvadorean legislation which would affect the monetary use of 

silver. The general public does not seem adverse to the use of 

silver in the Salvadorean monetary system, except for its opinion 

that the present coins are cumbersome. The authorities are thought 

to favor the increased use of silver. 

Present employment of silver.—The amount of Salvadorean silver 

coin in circulation in El Salvador in 1932 (believe to be on Dec. 31) 

was 1,078,142 colones, and the note circulation on that date for the 

three Salvadorean banks of issue was 12,277,255 colones; that is 

8.8 percent as much silver as notes. Some United States silver 

coins also circulate. There are no restrictions on the importation 

and exportation of silver ore, bar, or coin. 

SAMOA, WESTERN 

The monetary unit is the New Zealand pound, divided into 20 

shillings of 12 pence each. The New Zealand pound has a par 

value of approxmately $4.8666, but is at present depreciated, beingpegged to the pound sterling at a rate which is altered from time 

to time. 

New Zealand's currency system applies to Western Samoa. 

SAN MARINO, REPUBLIC OF 

The monetary unit is the Italian lira, divided into 100 centesimi. 

The par value of the lira is approximately $0.0526. 

Present legal provisions.—The Republic of San Marino has monetary agreements with Italy and with Vatican City. Both are 

similar to the agreement between Italy and Vatican City (cited 

under Vatican City). The Italy-San Marino agreement, however, 

differs in one respect, providing: 

The Republic of San Marino shall cease minting nickel and bronze coins, 

and the amount of silver coins minted during 1931-33 shall not exceed 2,100,000 

Italian lire or 700,000 for each year. 

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The Government of the Republic binds itself to retire from circulation its 

former silver and bronze coins, within a month of the date on which the 

present agreement is signed, and before the new coins are delivered by the 

royal mint at Rome. 

The royal mint binds itself to supply the silver necessary for the coinage 

during 1931-33 at the market price. 

Possibility of increased use of silver without new legislation.— 

New silver coins may be issued within the limits defined above. 

Attitude toward silver.—No new legislation affecting the monetary 

use of silver has been reported under consideration. 

Present employment of silver.—The last previous coinage of San 

Marino was in 1905. It speedily passed into the hands of 

numismatists, and thereafter Italian coins circulated exclusively. 

Of the new silver coinage under the 1931 agreement, Consul 

Joseph Emerson Havin reported from Florence that the first lot 

to be issued would consist of 250,000 lire of 5-lira pieces, 250,000 

lire of 10-lira pieces, and 200,0p0 lire of 20-lira pieces. This lot 

is to be placed in circulation by the end of 1933. 

SARAWAK 

The monetary unit is the Straits dollar divided into 100 cents. 

The par value of the Straits dollar is approximately $0.5678. 

Present legal provisions.—Although Straits dollar currency is 

used, special Sarawak silver coins are issued in denominations of 

20 and 50 cents, 0.400 fine, and weighing 80 and 160 grains, 

respectively. 

Importation of foreign currency, other than that of the Straits 

Settlements, has been prohibited since the promulgation of order 

XV of July 31, 1908. 

Attitude toward silver.—No intention to alter the present monetary use of silver in Sarawak has been reported. 

Present employment of silver.—The total monetary circulation of 

Sarawak, metal and paper, at the end of 1931 was reported at 

2,178,000 Straits dollars, according to the United States Bureau 

of the Mint. 

SIAM 

The monetary unit is the baht, divided into 100 satang or 4 

salung. The baht has a par value of approximately $0.4424. 

Present legal provisions.—The Currency Act of 1928 (B.E. 2471) 

made gold the standard of value. The silver tical continues to be 

unlimited legal tender, but its name is changed to " baht." This act 

also provided for 50-satang and 20-satang silver pieces which are 

legal tender in amounts not exceeding 5 bahts. 

The Currency Amendment Act of 1931 (B.E. 2473) provided for 

the sale of demonetized silver. This amendment made it lawful for 

the finance minister to sell any portion of the baht coins held in 

the reserve and provided that gold or gold exchange should be purchased with the proceeds of any such sale and should be held in 

the reserve. 

The silver coins provided for in the 1928 law and the regulations 

based thereon are as follows: The 1-baht piece, weighing 15 grams, 

0.900 fine; the 50-satang piece, weighing 7.5 grams, 0.650 fine; and 

the 25-satang piece, weighing 3.75 grams, 0.650 fine. 

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Possibility of increased use of silver without new legislation.—• 

Definite information on this point cannot be given, as the text of 

the law is not available. 

Attitude toward silver.—There seems to be no likelihood of 

increased monetary employment of silver. In fact, for sometime the 

tendency has been in the opposite direction. Under the existing law, 

quoted above, the Minister of Finance has authority to dispose of 

the silver coins now held in the reserve, and this would appear to 

be a far more likely development than to have new silver coins 

minted for use in circulation. 

Present employment of silver.—The silver baht coin has not been 

minted for sometime and has largely disappeared from circulation. 

Subsidiary silver coins, however, are in quite common use in the 

country districts. 

At the time of the promulgation of the Currency Amendment Act 

of 1931, the Government had substantial quantities of baht coins 

on hand, which were carried in Wo accounts. About 50,000,000 of 

these silver baht coins were included in the currency reserve and 

another substantial sum was carried separately in the treasury. 

Following the above amendment which authorized the sale of silver 

coins, about 20,000,000 fine ounces were disposed of from the treasury 

account. The shipment was forwarded to London in September 

1931 and disposed of in the silver market. There remained in the 

treasury's note reserve, as of the end of December 1932, 43,372,064 

baht coins and, except for a minor amount of silver remaining in 

circulation in the form of baht and subsidiary coins, it is presumable 

that this represents the extent of the monetary use of silver in Siam 

at the present time. (The stock of silver compares with a note 

circulation of over 114,832,498 bahts on December 31, 1932. In addition, over 24,100,000 bahts of notes wTere held in the treasury.) 

The 43,372,064 bahts mentioned above contain approximately 

18,825,000 fine ounces of silver. 

SOUTH WEST AFRICA, BRITISH MANDATED TERRITORY OF 

The monetary unit is the pound divided into 20 shillings. The 

pound has a par value of approximately $4.8666. 

Present legal provisions.—Proclamation No. 3 of 1922 made all 

British and Transvaal coins legal tender in the Territory of Southwest Africa, silver coin to be legal tender in amounts not exceeding 

40 shillings.1 Transvaal coins were defined as coins struck at the 

Pretoria mint by the Government of the South African Republic. 

Union of South Africa coins were included by Proclamation No. 13 

of 1925. 

The parity of the currency of the mandated territory was defined 

by the Union of South Africa Coinage Act (no. 31) of 1922. 

According to Proclamation No. 26 of 1932, published November 1— 

Any person introducing into the territory, or any person receiving, after introduction into the territory, from any country other than the Union or the 

Bechuanaland Protectorate, any silver coin current in the Union which was 

not struck at the mint of the late South African Republic or at the Pretoria 

1 This limit was reaffirmed in Proclamation No. 13 of 1925. 

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branch of the royal mint, shall pay as a tax thereon a sum equal to the difference between the face value of such coin calculated according to the currency 

of Great Britain and Northern Ireland and such face value calculated according to the currency of the Union at the rate of exchange quoted by the South 

African Reserve Bank for the telegraphic transfer of money from the Union to 

London on the day of introduction of such coin: Provided, That any person 

entering the territory as a bona fide traveler who has not previously entered 

the territory within a period of 14 days prior to the first-mentioned entry may 

bring with him into the territory free from such tax a quantity of such silver 

coin representing, according to its face value, a sum not exceeding 40 shillings. 

For other details, see Union of South Africa. 

Possibility of increased use of silver without new legislation.—See 

Union of South Africa. 

Attitude toward silver.—See Union of South Africa. 

Present employment of silver.—At the end of 1931 the banks held 

£28,036 in silver coin and £80 in silver bullion. (See Union of South 

Africa.) 

SPAIN 

The monetary unit is the peseta, divided into 100 centimos. The 

peseta has a par value of approximately $0,193. 

Present legal provisions.—According to the law of October 19, 

1868, the 5-peseta pieces therein authorized are full legal tender on 

the same basis as gold. Other Spanish silver coins are legal tender 

in amounts not exceeding 50 pesetas. The minting of 5-peseta pieces 

was discontinued by a law passed in 1901 (striking of the coins had 

in fact ceased in 1899). Since 1878 silver has been coined only for 

the account of the State. 

Details of the silver coinage are shown in the following table: 

Denomination 

Gross 

weight 

j L Ufc. 

Fineness 

Amount 

coined 

from 1868 

to April 1, 

1930 

(millions of 

pesetas) 

5 pesetas. _ _ _ _ _ _ _ _ _ _ _ _ _ 

Grams 

25.0 

10.0 

5.0 

2.5 

0.900 

.835 

.835 

.835 

1,052. 2 

156.3 

109.5 

14.5 

2 pesetas._ _ _ _ _ __ _ . __ _ _ _ 

Grams 

25.0 

10.0 

5.0 

2.5 

0.900 

.835 

.835 

.835 

1,052. 2 

156.3 

109.5 

14.5 

1 peseta.. - -

Grams 

25.0 

10.0 

5.0 

2.5 

0.900 

.835 

.835 

.835 

1,052. 2 

156.3 

109.5 

peseta _ _ _ _ _ ______ _ 14.5 

Grams 

25.0 

10.0 

5.0 

2.5 

0.900 

.835 

.835 

.835 

1,052. 2 

156.3 

109.5 

14.5 

Grams 

25.0 

10.0 

5.0 

2.5 

0.900 

.835 

.835 

.835 

1,052. 2 

156.3 

109.5 

14.5 

The Bank of Spain's legal reserve against notes may include 

silver as well as gold and gold exchange. For a note issue not 

exceeding 4,000,000,000 pesetas the minimum reserve must be 45 

percent, and above 4,000,000,000 pesetas, 60 percent. Silver in the 

reserve may not exceed 5 percent of notes up to 4,000,000,000 pesetas 

or 10 percent of notes in excess of that sum.2 

Possibility of increased use of silver without new legislation.— 

There seems to be no possibility of extending the monetary use of 

silver in Spain under existing legislation. 

Attitude toward silver.—There is no legislation in early prospect 

affecting the monetary use of silver. In 1931 there was passed the 

law of banking ordination, in which the possibility of eventual 

adoption of the gold standard and of revalorizing the peseta 

2 Federal Reserve Bulletin, July 1932, p. 438. 

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was indicated. Since the suspension of the gold standard by England and other countries, talk of changing Spain's currency system 

has ceased, and there is no indication of an early return to the 

subject. 

A serious problem exists in the large stock of silver held in Spain. 

Considerably over 1,000,000,000 pesetas in silver coins have been 

minted, and estimates place the amount of these coins now in the 

country at around 1,000,000,000 pesetas. The coins consist mostly 

of legal tender 5-peseta pieces, the great bulk being held by the 

Bank of Spain. Thus, in January 1933 the bank's silver holdings 

amounted to 610,000,000 pesetas. (This, compared with a note 

circulation of 4,789,000,000 pesetas.) The excessive stocks of silver 

coins always lying in the Bank of Spain's vaults indicate that Spain 

has more silver than necessary. 

Since the law requires that 5-peseta silver pieces be accepted on 

the same basis as gold coins, the Bank of Spain in practice does 

not redeem its notes in gold, but in silver coin. Hence, actually, 

the peseta is valued at a considerable discount from par.3 

Present employment of silver.— (See above.) Spain produces a 

moderate amount of silver. The output was 2,700,000 fine ounces 

in 1930 and 3,100,000 in 1931. 

STRAITS SETTLEMENTS 

The monetary unit is the Straits dollar divided into 100 cents. 

The par value of the Straits dollar is approximately $0.5678. 

The Straits dollar is employed not only in the Straits Settlements 

and the Malay States but also in Sarawak, Labuan, and Borneo. 

Present legal provisions.—The Straits dollar, weighing 20.2177 

grams 0.900 fine, was established by an order-in-council of the British Government on February 2, 1895. This coin was by the same 

order made unlimited legal tender, and various limited-legal-tender 

coins were provided. In 1906 the 50-cent piece was also made unlimited legal tender. All smaller current silver coins are legal 

tender in amounts not exceeding 2 dollars. 

In 1918, 1919, and 1920 the fineness of the various silver coins 

was successively reduced, but the old coins were permitted to continue in circulation until withdrawn.4 

Details of the silver coinage at present circulating are as follows: 

Denomination Gross 

weight Fineness 

Grams 

1 dollar (old) 20. 2173 0.900 

1 dollar (new) 16. 8478 .500 

50 cents (old) 10.1086 .900 

50 cents (new) 8. 4239 .500 

20 cents (old) 5. 4308 .800 

20 cents (old) 5. 4308 .600 

20 cents (new) 5. 4308 .400 

Denomination 

10 cents (old) _ 

10 cents (old) _ 

10 cents (new) 

5 cents (old) _ _ 

5 cents (old) _ _ 

5 cents (new). 

Gross 

weight 

Grams 

2.7151 

2.7151 

2.7151 

1. 3575 

1. 3575 

1. 3575 

3 The following is reprinted from Trade Promotion Series No. 139, The Silver Market, 

pp. 64-65, issued by the Bureau of Foreign and Domestic Commerce: 

" Fluctuations in the amount of silver held by the Bank of Spain are attributed to 

absorption by hoarding. The latter phenomenon was reflected in a demand for bank 

notes. To prevent—at least, in part—this tendency of the note issue to increase, the 

Bank of Spain in 1931 initiated a policy of making one tenth of its out payments in the 

form of silver pesetas." 

4 For details of these steps, see Monetary Units and Coinage Systems of the Principal 

Countries of the World, 1929, p. 80. 

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By an executive order in 1906 the Straits dollar was made equivalent to 28 pence. 

All silver coins are issued by the Currency Commissioners of the 

Straits Settlements. The commissioners are obliged to exchange on 

demand the dollar and half-dollar pieces for notes whenever tendered. The commissioners are also obliged to maintain a minimum 

reserve of silver amounting to 10 percent of the notes in circulation. 

At the end of September 1931 the legal tender silver in the reserve 

amounted to over 28 percent of the note circulation. 

Possibility of increased use of silver without new legislation.—Issuance of more silver is within the power of the currency commissioners. 

Attitude toward silver.—No legislation likely to affect the monetary use of silver in British Malaya has been reported. 

An increase in the use of silver money would depend almost entirely upon general trade and economic conditions and the attitude 

of the public toward silver coins. The fluctuation in the quantity of 

silver money in use varies with demand. Many years ago when notes 

were first introduced, difficulty was experienced in getting the natives 

and the local Chinese to accept them in lieu of silver. This sentiment against paper currency has not only been overcome, but has 

changed into a distinct preference for the paper. This fact, as well 

as the business depression, is reflected in the decrease in the use of 

the Straits silver dollars and 50-cent pieces, which on September 30, 

1929, had a gross circulation of 6,415,312 Straits dollars and on 

September 30, 1931, 4,396,917 Straits dollars, a shrinkage during 2 

years of approximately 1,000,000 Straits dollars per annum. Meanwhile a large supply of dollar and 50-cent silver coin is held by the 

Government in the currency reserve. 

The principal way in which the amount of silver used as currency 

in Malaya might be extended would be to increase the fineness of 

subsidiary coins, but such a step is not at present anticipated. The 

quantities of subsidiary coins held by the treasury and in circulation 

are considered sufficient for many years to come, even under normal 

trade and economic conditions. With the present depressed state of 

the rubber industry and a general curtailment in all lines of business, 

the demand for subsidiary silver coins is showing considerable 

decrease. 

The 10- and 25-cent notes in circulation in the Straits Settlements 

are being withdrawn, but their replacement by silver would not consume much of the metal. The 6,900,000 Straits dollars of 10-cent 

notes circulating on September 30,1931, constituted only 1.12 percent 

of the total note issue. The 141,000 Straits dollars of 25-cent notes 

outstanding were but six one-hundredths of 1 percent of the total. 

Present employment of silver.—Very little Straits Settlements 

silver is in circulation. On September 30, 1931, the currency circulation was as follows, in millions of Straits dollars: 

Unlimited legal tender: 

Currency notes 60. 9 

Bank notes 0.1 

Dollar and half-dollar silver coins 4.4 

Total 65. 4 

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Limited legal tender : 

Currency notes 0. 7 

Subsidiary silver 9.6 

Minor coin 2. 4 

Total

 512. 8 

Grand total 78. 2 

Gross circulation is represented by 4,400,000 Straits dollars. Subtracting the amount of dollar and 50-cent coins held by the treasury, 

the total is reduced to approximately 4,211,000 Straits dollars, of 

which the banks held some 147,000. Regarding the 9,600,000 Straits 

dollars of subsidiary silver, the currency department states that this 

figure is purely nominal, since large quantities of 0.800 fine coin 

have been exported or melted down by the public. The total just 

cited excludes subsidiary silver held by the treasury and is made 

up as follows: 

Straits dollars 

Coin 0.800 fine 3, 762, 000 

Old coin 0.600 fine 1, 952, 000 

Coin 0.400 fine 1, 482, 000 

New coin 0.600 fine 2,424,000 

Total circulation, September 30, 1931 9, 620,000 

Issuance of silver coins 0.600 fine has led to a decline in the circulation of nickel coins. 

With reference to the table given above, it should be noted that the 

0.900-fine Straits dollar has been largely replaced by the 0.500-fine 

dollar. The currency report for 1930-31 showed that over 

19,000,000 Straits dollars in 0.900-fine coins had been received from 

the mint. Of that sum, almost 13,520,000 Straits dollars had been 

sold or used for reminting, about 1,768,000 were held by the commissioners on September 30, 1931, and the remaining 3,719,000 were 

(nominally) in circulation. Of the 17,393,000 Straits dollars of 

0.500-fine dollar and 50-cent silver coins received from the mint, 

only 678,000 were in circulation on September 30, the rest being held 

by the commissioners, who on that date thus held a total of over 

18,483,000 in full-legal-tender silver coin, while the public held 

4,397,000. 

The report of the currency commissioners for December 1, 1932, 

showed the following selected items: 

Straits dollars 

Currency notes in circulation 68, 489,000 

Total currency guaranty fund 133, 244, 000 

Legal-tender silver held in the guaranty fund in the 

colony (face value) 19,259,000 

It is of interest to note that considerable quantities of silver coins 

are used by the public in trade, i.e. melted down and converted 

into jewelry, bowls, vases, and the like. 

SWEDEN 

The monetary unit is the krona (plural, kronor), divided into 

100 ore. The krona has a par value of approximately $0.2680. 

Present legal provisions.—The coinage is governed by the monetary 

law of May 30, 1873, as amended to date. By the 1873 law Sweden 

5 Due to abbreviation of the items, the summation does not agree with the total. 

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became a member of the Scandinavian Monetary Union. Silver 

coins were made subsidiary to the gold krona, and until 1924 circulated interchangeably with those of Norway and Denmark. By a 

convention of March 22, 1924, the subsidiary coins of the union 

were restricted as limited-legal-tender coin to the country of issue. 

The present currency law, insofar as it applies to silver, provides 

for coins as follows: 

Denomination Fineness 

Gross 

weight 

Legal 

tender 

limit i 

2 kronor - 0.800 

.800 

.600 

.600 

.400 

Grams 

15.00 

7. 50 

5.00 

2.42 

1.45 

Kronor 

20 

20 

5 

5 

5 

1 krona - -

0.800 

.800 

.600 

.600 

.400 

Grams 

15.00 

7. 50 

5.00 

2.42 

1.45 

Kronor 

20 

20 

5 

5 

5 

50 ore 

0.800 

.800 

.600 

.600 

.400 

Grams 

15.00 

7. 50 

5.00 

2.42 

1.45 

Kronor 

20 

20 

5 

5 

5 

25 ore 

0.800 

.800 

.600 

.600 

.400 

Grams 

15.00 

7. 50 

5.00 

2.42 

1.45 

Kronor 

20 

20 

5 

5 

10 ore 5 

0.800 

.800 

.600 

.600 

.400 

Grams 

15.00 

7. 50 

5.00 

2.42 

1.45 

Kronor 

20 

20 

5 

5 

5 

0.800 

.800 

.600 

.600 

.400 

Grams 

15.00 

7. 50 

5.00 

2.42 

1.45 

Kronor 

20 

20 

5 

5 

5 

1 Fractional money is received by the treasury without limit. 

Possibility of increased use of silver without new legislation.— 

There are no legal limits to the Government's right to mint silver 

coins. 

Attitude toward silver.—No official proposal to amend the existing 

currency law has been made. The public prefers the present smalldenomination notes to coins. There is no agitation in Sweden to 

increase the use of silver coins and no change in this respect is 

likely in the near future. 

Present employment of silver.—At the end of 1928 (the latest date 

for which the information is available) coins outstanding, in millions 

of kronor, was reported as follows: 

Silver : 

2 kronor 9. 8 

1 krona 22. 3 

50 ore 4. 4 

25 ore 8. 7 

10 ore : 6. 6 

Total silver

 6 51. 8 

Gold 93. 6 

Minor coin 6.9 

Grand total

 7152. 4 

The above figures compare with the total note issue of the Bank of 

Sweden amounting to approximately 598,000,000 kronor at the end 

of 1932. " Silver, etc.", held in the Bank of Sweden at the end of 

1931 totaled 4,193,982 kronor. (The 1931 note-issue figure is given 

as approximately 582,700,000 kronor.) 

6 It is believed that considerable amounts of 1- and 2-kronor silver coins were melted 

during the war and hence no longer exist as coin. Moreover, some of the coins included 

in this total are in circulation in Norway and Denmark, notwithstanding the 1924 convention. Coinage of silver from 1S73 to 1931, minus withdrawals by the mint, totaled 

58,184,000 kronor. 

7 The difference between this total and the summation of the items is due to abbreviation 

of the latter. 

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SWITZERLAND 

The monetary unit is the Swiss franc, divided into 100 centimes. 

The franc has a par value of approximately $0.1930 . 

Present legal provisions.—The currency law of June 3,1931, which 

became effective September 9, 1931, governs the monetary use of 

silver. It provides for silver coins as shown in the following table: 

Denomination Fineness 

Gross 

weight 

Legal 

tender 

limit 

5 francs. . . _ _ _ _ _ _ _ 0.835 

.835 

.835 

.835 

Grams 

15.0 

10.0 

5.0 

2.5 

Francs 

100 

100 

100 

100 

2 francs _ _ _ _ _ . _ _ 

0.835 

.835 

.835 

.835 

Grams 

15.0 

10.0 

5.0 

2.5 

Francs 

100 

100 

100 

100 

1 franc.. . 

0.835 

.835 

.835 

.835 

Grams 

15.0 

10.0 

5.0 

2.5 

Francs 

100 

100 

100 

Yi 100 franc- . . 

0.835 

.835 

.835 

.835 

Grams 

15.0 

10.0 

5.0 

2.5 

Francs 

100 

100 

100 

100 

0.835 

.835 

.835 

.835 

Grams 

15.0 

10.0 

5.0 

2.5 

Francs 

100 

100 

100 

100 

According to article 2 of the law of 1931, coinage is made the 

prerogative of the Federal Government, which is charged with the 

duty to "maintain the supply of federal money Article 6 states 

that the public offices (caisse publiques) of the confederation and 

cantons, as also the Swiss National Bank, must accept all forms of 

Swiss money without limit as to amount. 

The amount of silver coin in circulation is governed by articles 8 

and 10, which read: 

ART. 8. The federal treasury puts into circulation the necessary amounts 

of silver, nickel, and bronze money, and withdraws amounts deemed to be 

superfluous. 

It creates a reserve of such moneys as may be considered necessary. 

ART. 10. The federal budget shall state the amount of each metal to be 

minted into currency. 

Possibility of increased use of silver without new legislation.— 

In view of article 10, the minting of additional silver cannot take 

place without new legislation. Minted coin now in the reserve, however, may be put into circulation without new legislation. 

Attitude toward silver.—For the present the above-mentioned reserve consists of " at least 10,000,000 francs in nickel and silver." 

The sum as now determined cannot be increased without an amendment to the law, and there is no early prospect of such an amendment. 

In determining the coinage from year to year the confederation relies 

upon the advice of the Swiss National Bank. 

When the measure to reduce the large 5-franc pieces to their present size was under consideration, the question was also debated of 

substituting some other metal for silver in some of the smaller coins. 

The mere suggestion aroused a storm of protest, the general public 

interpreting the plan as one to lessen the value of their money. 

Eather than enter into an elaborate educational campaign, the authorities thought it wiser to drop this suggestion, and silver 2-franc, 

1-franc, and half-franc coins remain in circulation. 

Present employment of silver.—Silver currency in circulation in 

Switzerland at the end of 1931 amounted to 158,979,505 Swiss francs, 

subdivided as follows: 

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Francs 

5-franc pieces, large 69, 363, 300 

5-franc pieces, small 17,600,000 

2-franc pieces 26, 788, 772 

1-franc pieces 29, 751, 834 

-franc pieces 15, 475, 599 

Total 158, 979, 505 

The figures for 1932 will not be released until sometime in July. 

It is not believed, however, that they will materially differ from 

those for 1931. In 1929 silver coin in circulation totaled 150,599,006 

Swiss francs, and in 1930, 149,861,505 francs. That the 1931 figure 

showed an increase was probably due to the issuance of the new 

small 5-franc pieces, and also to the fact that nationals of neighboring countries, fearing that their currencies would be divorced from 

gold, took to hoarding Swiss notes, following which, the Swiss 

Government increased the coinage of silver. 

Commercial Attache Donald Renshaw, in March 1933, reported 

that neither the national bank nor the federal treasury had any 

appreciable amount of bar silver. The mint holds a certain necessary 

amount for normal coinage purposes and industrial concerns usually 

have some silver on hand. It is generally considered, however, that 

neither of these holdings is large, as the Government only lately 

reduced the size of the 5-franc piece, while the demand for silver 

for watch cases has greatly decreased, due to the comparative inactivity of the watch-making industry. 

Imports of silver into Switzerland during the past 3 years were 

as follows, the 1931 increase being very likely attributable to the 

coinage operations mentioned above: 1930, 41,231 kilograms; 1931, 

73,935 kilograms ; and 1932, 44,608 kilograms. 

SYRIA 8 

The monetary unit is the Syrian pound, divided into 100 piasters. 

The Syrian pound has a par value of approximately $0.7536, i.e., 20 

French francs. 

Present legal provisions.—Silver coinage is governed by the decree 

issued by the French high commissioner on April 16, 1929. That 

decree limits the circulation of silver to 1,250,000 Syrian pounds, and 

its legal tender to 15 Syrian pounds.9 The following specifications 

appear in the decree: 

Denomination Fineness Gross 

weight 

50 piasters _ _ __ __ __ __ 0.680 

.680 

.680 

Grams 

10 

5 

2 

25 piasters _ _ -

0.680 

.680 

.680 

Grams 

10 

5 

10piasters _ __ ___ - 2 

0.680 

.680 

.680 

Grams 

10 

5 

2 

0.680 

.680 

.680 

Grams 

10 

5 

2 

The above coins made their appearance in 1930. 

8 French mandates in the levant include: the Lebanese Republic, Syria, the Government 

of Latakia, and the Government of Jebel Druze. The Sandjak du Alexandrette is administered by Syria. 

9 The coins are acceptable at Government offices without limit. 

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A report submitted to this bureau in 1930 stated: 

Decree No. 844, of May 10, 1921, prohibits the exportation of gold, silver, or 

platinum in the form of coin or bullion. This decree was modified by Decree 

No. 2040 of July 23, 1928, authorizing the financial adviser of the French High 

Commission to issue special permits covering such exportation. It is reported 

that the Banque de Syrie has exported large amounts of old Turkish gold and 

silver coins in an attempt to increase the circulation of Syrian paper currency. 

The importation of foreign silver currencies, including old Turkish silver coins, 

is prohibited except in amounts not greater than five Syrian pounds when 

brought in by visitors. 

Possibility of increased use of silver ivithout new legislation.— 

Since the present circulation of Syrian silver coins reaches the maximum mentioned in the 1929 decree, a new decree would be necessary 

were more silver coin to be issued. 

Attitude toivard silver.—No prospective legislation has been reported which wTould affect the monetary use of silver in Syria, 

except, possibly, in connection with the old Turkish silver coins in 

the country. It is estimated that the equivalent of 4,000,000 Syrian 

pounds in old Turkish silver coins are in circulation in Syria, and 

it is probable that they will be demonetized and replaced by Syrian 

silver coins. Some Damascus piasters of silver were still in circulation in 1930. 

The population shows a marked preference for silver coins but 

the Banque de Syrie et du Grand Liban is said to prefer paper. 

The attitude of the French high commissioner toward silver money 

will doubtless continue to be dictated by that of the French Government. That the maximum issue of Syrian silver was set as high 

as 1,250,000 pounds is explained by the long-standing popularity of 

metallic money. The new coins were designed to serve until the 

populace became accustomed to the paper money. 

Present employment of silver.—Silver in circulation consists of 

Syrian coin to a total face value of 1,250,000 Syrian pounds, and 

Turkish silver coin estimated to total 4,000,000 Syrian pounds in 

value.10 (The latter coins at present circulate at their value as 

bullion.) These figures compare with a note circulation of 12,-

400,000 Syrian pounds at the beginning of September 1932.11 

More detailed earlier figures, applying to the end of 1931, were 

reported to the United States Bureau of the Mint as follows: Silver 

in treasury, 57,610 Syrian pounds; in banks, 120,515; and in circulation, 1,053,675. 

Some French money circulates in Syria. 

TAIWAN 

The currency laws of Japan apply to Taiwan. 

TIBET 

The official monetary unit is the silver tang-ka, which has no 

fixed par value in terms of gold. 

There are no formal coinage laws. The tang-ka varies in weight, 

but is generally regarded as equivalent to 0.015 ounce (troy) of sil10 They are in denominations of 1, 2, 5, 10, and 20 Turkish piasters, all 0.830 fine and 

weighing, respectively, 24.055, 12.028, 6.014, 2.405, and 1.203 grams. 

11 The note-issue figure represented an increase of 4,775,000 Syrian pounds since 1929, 

due to the substitution of notes for Turkish gold coins in circulation. 

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ver. Six kinds of tang-ka are reported to be in current use. No 

fractional silver coins are issued, change being made by cutting up 

tang-ka coins, the money changer taking his commission by clipping 

a portion of the fractional pieces. The tang-ka has no standard fineness. 

In northern and eastern Tibet, Chinese 50-tael shoes of silver and 

other ingots are in use, being subdivided in various ways when 

required. Along the borders of Kaiisu the use of Chinese coins is 

becoming quite common. In southern and central Tibet, British 

Indian coins are commonly used, circulating at 3 tang-kas per rupee. 

A silver rupee coin, coined in China during the Tsing dynasty, 

also circulates in Tibet. 

TRAVANCORE 

The monetary unit is the Sirkar rupee, divided into quarters and 

sevenths. The Sirkar rupee has a par value of approximately 

$0,359. 

The Sirkar rupee was established by royal, proclamation on November 15, 1913, but has never been minted, the British Indian rupee 

being circulated instead. Subsidiary silver coins are minted as follows: Half-rupee, weighing 82 38/61 grains (troy); quarter-rupee, 

weighing 41 19/61 grains; and the fanam (1/7 rupee), weighing 

23 37/61 grains. These coins are all 0.950 fine. 

The British Indian rupee is legal tender in any amount, and the 

corresponding half- and quarter-rupee and 2-anna silver pieces are 

legal tender in amounts not over 1 rupee. The Travancore silver 

half-rupee, quarter-rupee, and seventh-rupee are legal tender in payments of 2 rupees or less. 

TRINIDAD AND TOBAGO 

The monetary unit is the pound sterling, divided into 20 shillings 

of 12 pence each. The par value of the pound sterling is approximaely 4.8666 12 

• 

Present legal provisions.—The British coinage system applies to 

Trinidad and Tobago. 

Present employment of silver.—In addition to British currency, 

the West Indian dollar circulates in the form of paper notes. The 

West Indian dollar has a fixed value of 4 shillings 2 pence sterling. 

British Guiana 4-pence silver pieces also circulate. 

The United States Bureau of the Mint gives the stock of monetary silver in Trinidad at the end of 1930 as equivalent to $917,000 

United States currency. 

TUNISIA 

The monetary unit is the Tunisian or Algerian franc, divided 

into 100 centimes. The franc has a par value of approximately 

$0.0392. 

Present legal provisions.—There is no legal provision for the circulation of silver in Tunisia. It appears that silver coins will be 

issued in Tunisia at the same time as in France. (See France.) 

According to the report of the French Commission for the Control 

12 The British West Indies dollar, a unit of account equivalent to 4 shillings 2 pence, 

is in use, but it is not coined. 

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of the Monetary Circulation, published in the Journal Officiel of 

February 2, 1932, some silver coins were struck for Tunisia during 

1931. They consisted of fifty-three 20-franc pieces and one thousand 

one hundred and three 10-franc pieces. The fineness of the 20-franc 

pieces was found to be 0.6823 and that of the 10-franc pieces 0.682. 

TURKEY 

The monetary unit is the Turkish piaster, divided into 40 paras. 

The piaster has a par value of approximately $0.0440. One hundred piasters equal 1 Turkish pound, which by convention is the 

unit quoted in the foreign-exchange market. 

Present legal provisions.—Although the provisions of the currency regulations relating to silver coins, inherited by the republican 

regime from the Ottoman Empire, have not been modified or 

amended, silver coins no longer circulate as legal currency. They 

are not accepted for the payment of taxes or for customs duties. 

In other words, silver coins are legal tender (to 3 Turkish pounds) 

de jure, but not de facto. 

The old Turkish coins were as follows: 

Denomination Fineness 

Gross 

weight Denomination Fineness 

20 piasters (1 medjidie) 

10 piasters 

5 piasters 

0.830 

.830 

Grams 

24.0550 

12.0275 

6. 0138 

2 piasters. 

1 piaster.. 

Yi piaster 

.830 

.830 

.830 

Possibility of increased use of silver without new legislation.— 

It is believed that new legislation would be necessary before silver 

coins could be issued. 

Attitude toward silver.—According to a report from Commercial 

Attache Julian E. Gillespie, dated January 11, 1933, silver coins 

will shortly be minted and put into circulation *under a project of 

law prepared by the Ministry of Finance. Specific information is 

not available, but it is understood that the Government desires to 

withdraw from circulation the 1-pound notes and some of the subsidiary coins, such as the 5- and 10-piaster bronze pieces, and replace 

them with silver coins. It is stated that the bulk of the silver coins 

to be minted will be 1-pound pieces and that the total issue will be 

about 24,000,000 Turkish pounds. 

When the paper currency now in circulation was printed in 1928, 

24,591,218 1-pound notes were put in circulation. Subsidiary bronze 

coins have been struck to the amount of approximately 3,750,000 

Turkish pounds. There is no estimate of 1-pound notes and subsidiary coins actually in circulation, but it is held that the proposed issue of 24,000,000 Turkish pounds in silver will serve to 

replace the notes and coins the Government desires to retire. 

The proposal is to issue silver coins in denominations of 25, 50, 

and 100 piasters; also new bronze coins in denominations of 10 

and 20 paras. 

Present employment of silver.—Following the issuance of paper 

currency in 1914, silver and gold coins disappeared from circulaDigitized for FRASER 

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tion. Since then old Turkish silver and gold coins have been 

accepted by banks and bullion dealers at their bullion value only. 

Old Turkish coins are to be found circulating in parts of Greece 

and southern Yugoslavia, Iraq, Syria, and Greek and Italian islands 

formerly part of the Turkish Empire. 

Circulation of foreign silver coins is prohibited by law. 

UNION OF SOVIET SOCIALIST REPUBLICS (RUSSIA) 

The monetary unit is the chervonets, consisting of 10 rubles. 

The chervonets has a par value of approximately $5.1457. 

Present legal provisions.—The coinage is governed by the decree 

of February 22, 1924, which provided for the issuance of new silver 

coins of the same weight and fineness -as the former Tsarist silver 

coins, and for the demonetization of the latter. The following are 

the silver coins specified: 

Denomination Fineness 

Gross 

weight 

Legal 

tender 

limit 

1 ruble 1 0.900 

.900 

.500 

.500 

.500 

Grams 

20.0 

10.0 

3.6 

2.7 

1.8 

Rubles 

25 

25 

3 

3 

3 

50 kopeks _ - - -

0.900 

.900 

.500 

.500 

.500 

Grams 

20.0 

10.0 

3.6 

2.7 

1.8 

Rubles 

25 

25 

3 

3 

3 

20 kopeks -

0.900 

.900 

.500 

.500 

.500 

Grams 

20.0 

10.0 

3.6 

2.7 

1.8 

Rubles 

25 

25 

3 

3 

3 

15 kopeks 

0.900 

.900 

.500 

.500 

.500 

Grams 

20.0 

10.0 

3.6 

2.7 

1.8 

Rubles 

25 

25 

3 

3 

10 3 kopeks _ _ _ 

0.900 

.900 

.500 

.500 

.500 

Grams 

20.0 

10.0 

3.6 

2.7 

1.8 

Rubles 

25 

25 

3 

3 

3 

0.900 

.900 

.500 

.500 

.500 

Grams 

20.0 

10.0 

3.6 

2.7 

1.8 

Rubles 

25 

25 

3 

3 

3 

11 ruble equals 100 kopeks. 

The note reserve may include silver.13 

The Soviet foreign trade monopoly controls the exportation and 

importation of silver, as it does that of all commodities. No movement can legally take place except through Government channels. 

Possibility of increased use of silver without new legislation.— 

It would be a relatively easy matter for the Government to increase 

the issuance of silver. 

Attitude toward silver.—It is unlikely that more silver money will 

be issued in the near future. 

Present employment of silver.—The coins provided for in the 1924 

legislation circulated freely until 1928 or early 1929, when the increase of the chervonets note circulation and the depreciation thereof 

forced the silver currency into hiding. Subsequently an attempt 

was made by the Government to compel hoarders of silver coins to 

release them, and a number of arrests were reported on this score. 

Apparently the Government had considerable success in this effort, 

since it has been reported that a large proportion of the heavy silver 

shipments to Germany in 1932 consisted of demonetized silver 

" which the Soviet Government had been accumulating for some 

years." In January 1933 it was reported from Paris that the Torgsin shops in Russia—shops maintained by the Government for those 

able to make purchases with foreign currency—had decided to accept from the native population payments in silver or gold coin, 

on a bullion basis, with the prices of their goods fixed at so many 

grams or ounces of silver or gold. 

13 Federal Reserve Bulletin, July 1932, p. 438. 

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The Paris report suggested that the acceptance of silver implied 

that no more gold, except possibly in the form of jewelry, is in the 

hands of the people. That there is little silver may be deduced from 

the fact that a decree, issued early in 1932, provides for the minting of nickel coins, in denominations of 10, 15, and 20 kopecks, to 

be " accepted at par with the silver coins already in circulation." 

This decree was referred to in a Soviet publication of March 16, 

1932. 

At the end of 1931 silver coins in circulation totaled 267,600,000 

rubles, comparing with 43,900,000 rubles of minor coin and 5,361,-

900,000 rubles of paper money.14 Since June 1, 1932, no circulation 

figures of any kind have been published by the Soviet Government. 

UNION OF SOUTH AFRICA15 

The monetary unit of the Union is the South African pound, 

divided into 20 shillings of 12 pence each. The South African 

pound has a par value of approximately $4.8666. 

Present legal provisions.—The coinage act (no. 31) of 1922 provides for silver coins 0.800 fine; otherwise they must conform to 

the specifications in force in the United Kingdom. As in the United 

Kingdom, silver coins are legal tender in payments not exceeding 

40 shillings. Following is a description of the Union's silver coins. 

Denomination Fineness Gross 

weight 

Half crown 0.800 

.800 

.800 

.800 

.800 

Grams 

14.1380 

11.3104 

5. 6552 

2. 8276 

1.4138 

Florin— ___ _ _ _ ____ _ _ 

0.800 

.800 

.800 

.800 

.800 

Grams 

14.1380 

11.3104 

5. 6552 

2. 8276 

1.4138 

Shilling. 

0.800 

.800 

.800 

.800 

.800 

Grams 

14.1380 

11.3104 

5. 6552 

2. 8276 

1.4138 

Sixpence 

0.800 

.800 

.800 

.800 

.800 

Grams 

14.1380 

11.3104 

5. 6552 

2. 8276 

Threepence . . 1.4138 

0.800 

.800 

.800 

.800 

.800 

Grams 

14.1380 

11.3104 

5. 6552 

2. 8276 

1.4138 

0.800 

.800 

.800 

.800 

.800 

Grams 

14.1380 

11.3104 

5. 6552 

2. 8276 

1.4138 

By imperial proclamation of December 14, 1922, there was established at Pretoria a branch of the royal mint. Coins other than 

gold struck at Pretoria bear distinctive designs. 

According to an arrangement made in 1922, quantities of British 

Imperial silver coins have been wtihdrawn from circulation in the 

Union.16 

The Treasury Department of the Union Government, under date 

of November 17, 1932, announced the revocation of the royal proclamation of January 13, 1911, which applied to the Union a certain 

part of the British coinage act of 1870, as amended by section 2, 

and the schedule of the coinage act, 1891, with modifications, and 

made British silver coins legal tender in the Union. By the terms 

of Government notice no. 1507, dated November 18, 1932, all British 

silver coins—whether of 0.925 or 0.500 fineness—were to be demonetized and withdrawn from circulation in the Union of South Africa 

by January 15, 1933. 

The proviso (of subsection 1 of section 1 of the regulations framed 

under subsection 1 of section 1 of the finance emergency regula14 According to Moscow Economic Life, No. 2 of Jan. 2, 1932, and Moscow Bulletin of 

Financial and Economic Legislation, 1932, No. 5. 

15 Includes Transvaal, Cape of Good Hope, Orange Free State, and Natal. See Southwest Africa, which is a mandate of the Union of South Africa. 

16 See Report of the Director of the United States Mint, 1924, p. 204. 

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tions act, 1931, published under Government Notice No. 1150 of 

Sept. 2, 1932) whereby any person entering the Union as a bona fide 

traveler within a period of 14 days prior to the first-mentioned 

entry, was permitted to bring into the Union a quantity of British 

silver coin not exceeding 40 shillings, has been repealed. At present, therefore, while there is no ban on the importation of British 

silver coin, it can be disposed of only through the banks at a discount. According to Assistant Trade Commissioner Du Wayne C. 

Clark, of Johannesburg (Nov. 20, 1932), the total face value of 

the coins to be retired under the above-described announcement 

was £1,250,000. 

The South African Eeserve Bank is expected to keep a 40 percent 

gold reserve against notes, deposits, and bills payable, but may 

include in the reserve silver not exceeding 8 percent of the deposits 

and bills payable.17 

Attitude toward silver.—It is evidently the policy of the Government to use silver in the currency system only as subsidiary coinage. 

Present employment of silver.—At the end of 1931 the monetary 

stock of the Union included £1,600,000 in silver coin in circulation, 

£545,137 in home banks, and £405,455 in the treasury and central 

bank. The total just given compares with £8,624,477 representing 

gold coin and bullion and £9,804,965 representing note issue on the 

same date. 

Insignificant quantities of coins of the former German East 

Africa, and Portuguese East Africa, and of Australia were, in 

1930, reported in circulation in the Union of South Africa; of these, 

only the Australian coins were generally accepted. The Australian 

coins were reported to circulate mainly in coastal ports. 

Regarding the demonetization in South Africa of British silver 

coins, the Johannesburg Sunday Times recently pointed out that 

the Union Government was culling out British coins of 0.925 fineness and reminting them into South African coins 0.500 fine. The 

mint has shipped great quantities of British 0.500-fine silver coins to 

the United Kingdom at a profit. 

UNITED KINGDOM 

The monetary unit is the pound sterling, divided into 20 shillings 

of 12 pence each. The par value of the pound sterling is approximately $4.8666. 

Present legal provisions.—The silver coinage of the United Kingdom is regulated by the coinage acts of 1870, 1891, and 1920, and 

by the currency act of 1928. 

The 1870 law provided for subsidiary silver coins, 0.925 fine, in 

10 denominations, and made them legal tender in payments not 

exceeding 40 shillings. It provided (sec. 9) funds for the purchase 

of bullion to supply coin for the public service. Under the act 

(sec. 11) the Government was empowered to alter the coinage regulations in certain respects at any time by royal proclamation. Such 

proclamations may not increase the original legal tender provision. 

The 1891 act did not effect any change in the use of silver but 

simply repeated the schedule of silver coins given in the 1870 act. 

17 Federal Reserve Bulletin, July 1932, p. 438. 

172120—33 9 

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The 1920 act reduced the fineness of the silver coins from 0.925 to 

0.500, and increased the remedy allowance from 0.004 to 0.005. 

As to the inclusion of silver currency in the monetary reserves 

of the Bank of England, the act of 1928 provides that not over 

£5,500,000 in silver may be held in the issue department of the 

Bank of England. 

The silver coins of the United Kingdom have the following gross 

weights in grams: Crown, 28.2759; half crown, 14.1380; florin, 

11.3104; shilling, 5.6552; sixpence, 2.8276; fourpence,18 1.8851; threepence, 1.4138; twopence,18 0.9425; penny,18 0.4713. 

Possibility of increased use of silver without new legislation.—• 

From an examination of the several coinage acts it appears that 

the silver coinage may be increased only when there is a need for it, 

under the provisions of section 9 of the 1870 act. The prerogative 

of the Throne, as outlined in section 11 of the same act, does not 

give the Crown authority to change the fineness of the silver coins, 

but authorizes it to " regulate any matters relative to the coinage 

and the mint within the present prerogative of the Crown which are 

not provided for by this act." 

The lowest denomination bank note is the 10-shilling note, and 

it is extremely unlikely that it would be replaced by silver. The 

growing use of coin machines may affect certain denominations of 

silver coins, but not the circulation of silver as a whole. 

Attitude toward silver.—No legislation involving silver coinage 

is contemplated and a change in the law could be expected only in 

the event of an increase in the price of silver or a depreciation of 

British exchange sufficient to make profitable the melting of the 

silver coins. The British Government has given no indication of 

favoring the increased use of silver as currency. In private circles 

there has been some agitation for the remonetization of silver, but it 

is apparently making no headway. Pixley and Abell's Annual Circular for 1932 commented as follows: 

As was the case in 1931, many well-meant efforts were made in 1932 to bring 

the question of the remonetization of silver to the fore whenever there was 

an Imperial or international conference in prospect, but these efforts and the 

little success which has so far attended them had less effect in moving prices 

than of old, due possibly to the fact that the speculative element in the market 

is becoming increasingly sceptical of results when such proposals are put forward. Moreover, the reply of the Chancellor of the Exchequer in the Commons 

on November 8 to Sir Robert Home's plea for the remonetization of silver 

indicated sufficiently clearly that the Government has little faith in the efficacy 

of this suggested remedy, either in increasing our trade with India and China 

or in increasing the world's available supplies of gold to any appreciable extent. 

The chancellor also added that he was sure they would not be able to get the 

agreement of all the central banks to such a scheme of remonetization. * * * 

It appears doubtful therefore whether any sharp artificial rise in price would 

benefit anyone for some time, except those who already have large stocks of 

silver for immediate disposal, such, for instance, as the Governments of India 

or Spain. 

Present employment of silver.—Recent statistics on the circulation of silver coins are not available. On December 30, 1931, silver 

in circulation was reported as totaling £49,000,000. According to 

the Bank of England's statistical summary, the " circulation " of 

all coins (bronze, silver, and gold) was £70,000,000 in October 1932. 

18 Maundy money. 

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The corresponding figure in January 1932, was £78,000,000. The 

decline thereafter may be chiefly explained by the " gold rush," 

which resulted in the widespread sale of gold sovereigns for their 

bullion content. 

At the end of June 1931 the banks of Great Britain, Ireland, and 

the Irish Free State—the issue department of the Bank of England 

excluded—held £15,789,208 in silver coin. 

Of the 10 denominations of silver coins specified in the law, 5 

are not in active circulation. The remaining 5 are the half crown 

(2 y2 shillings), florin (2 shillings), shilling, sixpence, and 

threepence. 

The Bank of England's statement for January 18, 1933, showed 

£3,715,633 of silver coin in its issue department. This compares 

with a note issue of £394,793,579, of which £40,129,851 was held in 

the banking department. 

The following excerpts from a report prepared in the American 

consulate in June 1932 are of interest in connection with the subject 

of this bulletin. 

Since 1920 the British Government has bought no silver, but has sold about 

half the surplus silver which it has gained by the reduction in the fineness, 

and by a decrease in the circulation, of silver coins. 

From the old silver of 0.925 fineness, withdrawn from circulation between 

1920 and 1930, amounting to £55,709,000 in face value, new coinage of 0.500 

fineness has been minted to the nominal value of £43,685,000. It was estimated in 1920 that the circulation of silver coinage in this country was about 

£60,000,000—so that the greater part of that coinage has now been replaced. 

According to the sixty-first annual report of the Deputy Master and Comptroller of the Royal Mint for 1930, the weight of the silver coinage withdrawn 

during the 10 years was about 6,000 tons. One can estimate the approximate 

weight of silver in this amount, which would be about 5,550 tons, or 181,258,560 

ounces. The weight of the new coins minted is given in the above-mentioned 

report as about 4,800 tons. Estimating from this figure, it would appear that 

the silver content, which would be about 2,400 tons, represents about 78,382,080 

ounces. Thus there appears to have been, during the 10 years, a surplus 

balance of about 3,150 tons, or about 102,876,480 ounces. It should be noted 

that a part of this balance is due to a net reduction in the nominal value 

of the silver coinage in circulation. With reference to this point, the 

above-mentioned report states as follows: 

" The difference between the face value of the withdrawals and the issues— 

£12,000,000—has been entirely financed by the sale of surplus bullion, with 

a margin over for surrender to the Treasury." 

The figures include issues to and withdrawals from the Dominions and 

colonies. Nearly £42,000,000 of the £43,685,000 was issued in the United 

Kingdom. 

With regard to the disposal of the balance, the report makes the following 

statement: 

" The silver coin withdrawn from circulation in the Dominions during the 

period 1920-30 has for the most part been melted in the local branch mints, and 

the resultant bullion sold to the Dominion Government concerned. Considerable 

quantities of the surplus bullion resulting from the conversion into lower-grade 

silver in this country have been used for coinage undertaken for various colonial 

and foreign governments. A further quantity—some 65,000,000 standard 

ounces—has been converted into ingots in the London Mint and disposed of 

on the market as bullion." 

Thus it would appear that about half of the surplus silver during the period 

has been sold in the open market, and the remainder used in ways for which 

new silver mi'ght have been purchased had this surplus not been available. 

I estimate that the amount of silver1 which would be required to restore the 

new silver coinage of 0.500 fineness to the old fineness of 0.925, would be approximately 65,977,288 ounces; and that the amount which would be required to 

replace it with coinage of nine tenths fineness, approximately 62,862,428 ounces. 

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A press report from Wellington on April 19 stated that New 

Zealand banks had received notice from London that the Bank of 

England would no longer accept at par British silver coins shipped 

from New Zealand or Australia. 

UNITED STATES19 

The monetary unit is the dollar, divided into 100 cents. 

Present legal provisions.—United States silver coinage, none of 

which is limited legal tender, consists of the standard silver dollar, 

and subsidiary silver coins. To an important degree, silver circulates by proxy in the form of silver certificates. Details of the 

silver dollars under each are listed in the table following:21 

Denomination Fineness 

Gross weight Silver content 

Denomination Fineness 

Grams Grains Grams j Grains 

i 

Dollar 0.900 

.900 

.900 

.900 

26.7296 

12. 5000 

6. 2500 

2. 5000 

412. 5000 

192.9045 

96. 4522 

38. 5809 

24.0566 

11.2500 

5. 6250 

2. 2500 

371. 2500 

173. 6140 

86. 8070 

34.7228 

Half dollar _ 

0.900 

.900 

.900 

.900 

26.7296 

12. 5000 

6. 2500 

2. 5000 

412. 5000 

192.9045 

96. 4522 

38. 5809 

24.0566 

11.2500 

5. 6250 

2. 2500 

371. 2500 

173. 6140 

86. 8070 

34.7228 

Quarter dollar. _ 

0.900 

.900 

.900 

.900 

26.7296 

12. 5000 

6. 2500 

2. 5000 

412. 5000 

192.9045 

96. 4522 

38. 5809 

24.0566 

11.2500 

5. 6250 

2. 2500 

371. 2500 

173. 6140 

86. 8070 

Dime (one tenth dollar) 34.7228 

0.900 

.900 

.900 

.900 

26.7296 

12. 5000 

6. 2500 

2. 5000 

412. 5000 

192.9045 

96. 4522 

38. 5809 

24.0566 

11.2500 

5. 6250 

2. 2500 

371. 2500 

173. 6140 

86. 8070 

34.7228 

The standard silver dollar has been coined under various acts, in 

accordance with specifications set down in the law of January 18, 

1837. The principal laws referred to and the amount of coinage of 

silver dollars under which are listed in the table following:21 

Authorizing act Standard 

weight 

Standard 

fineness 

Coined to 

Dec. 31, 1931 

(value) 

Apr. 2, 1792, total.. 

Grains 

416 0. 8924 

From 1792 to 1805.. 

During 1836 

Jan. 18, 1837 

From 1839 to Feb. 12, 1873_ 

1 412K 

Feb. 28, 1878 

July 14, 1890, total. 

412 K 

412^ 

.900 

.900 

1890 to date of repeal of purchasing clause of Sherman Act, 

Oct. 31, 1893 

Nov. 1, 1893, to June 13,1898 

June 13, 1898, war revenue bill 

Mar. 3, 1891 (trade dollar conversion) 

Apr. 23,1918, Pittman Act replacement, total. 

Old design, since Feb. 21, 1921 

"Peace" design, since Dec. 21,1921 

412^ 

412 X 

.900 

.900 

Total value and pieces 

Mar. 31, 1899, Lafayette commemorative, total.. 412^ .900 

$1, 440, 517 

1, 439, 517 

1,000 

6, 590, 721 

378,166, 793 

187,027, 345 

36, 087, 285 

42,139,872 

108,800,188 

5, 078,472 

270, 232, 722 

86, 730,000 

183, 502, 722 

848, 536, 570 

i Discontinued by act of Feb. 12, 1873. 

NOTE—Silver-dollar coinage was suspended from 1806 to 1835 and from 1874 to 1877. The bullion value 

of the dollar was greater than its face value for a considerable number of years prior to 1878. 

19 Including Alaska, Territory of Hawaii, Puerto Rico, Midway and Wake Islands, Guam, 

Yap, and American Samoa. 

20 From Monetary Units and Coinage Systems of the Principal Countries of the World, 

a As* shown in Report of the Director of the Mint, 1932, p. 88. 

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The above specifications of the present half-dollar and quarterdollar and 10-cent coins are as set forth in the act of February 12, 

1873. Below is given the total coinage of silver, including trade 

dollars, commemorative issues, and discontinued denominations, from 

1793 to the end of 1931.22 

Denomination 

Total coined 

(millions) 

Denomination 

Total coined 

(millions) 

Denomination 

Pieces Value 

Denomination 

Pieces Value 

Dollar _ 1 884. 5 

462.9 

653.1 

1.4 

1, 397. 0 

Dollars 

1 884. 6 

231.5 

163.3 

(

2

) 

139.7 

Half dime 97.6 

42.7 

Dollars 

4.9 

Half dollar 1.3 

1 884. 5 

462.9 

653.1 

1.4 

1, 397. 0 

Dollars 

1 884. 6 

231.5 

163.3 

(

2

) 

139.7 

3 cents _ _ 

97.6 

42.7 

Dollars 

4.9 

1.3 

Quarter dollar 

1 884. 5 

462.9 

653.1 

1.4 

1, 397. 0 

Dollars 

1 884. 6 

231.5 

163.3 

(

2

) 

139.7 

Total silver.__ 

97.6 

42.7 

Dollars 

4.9 

1.3 

20 cents. -

1 884. 5 

462.9 

653.1 

1.4 

1, 397. 0 

Dollars 

1 884. 6 

231.5 

163.3 

(

2

) 

139.7 

Total silver.__ 3, 539. 3 1,425.4 

10 cents (dime) 

1 884. 5 

462.9 

653.1 

1.4 

1, 397. 0 

Dollars 

1 884. 6 

231.5 

163.3 

(

2

) 

139.7 

3, 539. 3 1,425.4 

1 Including trade dollars to a total of 35,965,924. 2 $271,000. 

Details of American coinage history as affecting the present monetary use of silver are given by the Bureau of the Mint as follows :23 

The act of February 12, 1873, provided silver coins * * * a trade dollar; 

a half dollar, or 50-cent piece; a quarter dollar; and a 10-cent piece; the 

weight of the trade dollar to be 420 grains (troy) ; the half dollar, 12y2 grams; 

the quarter dollar and the dime, respectively, one half and one fifth of the 

weight of the half dollar. Owners of silver bullion were allowed to deposit it 

at any mint of the United States to be formed into bars or into trade dollars 

and no deposit of silver for other coinage was to be received. 

Section 2 of the joint resolution of July 22, 1876, recited that the trade dollar 

should not thereafter be legal tender and that the Secretary of the Treasury 

should be authorized to limit the coinage of the same to an amount sufficient 

to meet the export demand for it. The law of March 3, 1887, retired the trade 

dollar and discontinued its coinage. 

The act of February 28, 1878 [popularly known as the Bland-Allison Act], 

directed the coinage of silver dollars of the weight of 412% grains (troy), of 

standard silver, as provided in the act of January 18, 1837, and that such coins, 

with all standard silver dollars theretofore coined should be legal tender at 

their nominal value for all debts and dues, public and private, except where 

otherwise expressly stipulated in the contract. The Secretary of the Treasury 

was authorized and directed by the first section of the act to purchase from 

time to time silver bullion at the market price thereof not less than $2,000,000 

worth nor more than $4,000,000' worth per month, and to cause the same to be 

coined monthly, as fast as purchased, into such dollars. 

A subsequent act, that of July 14, 1890 [popularly known as the Sherman 

Act], provided that the Secretary of the Treasury should purchase silver bullion 

to the aggregate amount of 4,500,000 ounces, or so much thereof as might be 

offered, each month, at the market price thereof, not exceeding $1 for 371.25 

grains of pure silver, and to issue in payment thereof Treasury notes of the 

Un'tecl States, such notes to be redeemable by the Government, on demand, in 

coin, and to be legal tender in payment of all debts, public and private, except 

where otherwise expressly stipulated in the contract. The act directed the 

Secretary of the Treasury to coin each month 2,000,000 ounces of the silver 

bullion purchased under the provisions of the act into standard silver dollars 

until the 1st day of July, 1891, and thereafter as much as might be necessary 

to provide for the redemption of the Treasury notes issued under the act. The 

purchasing clause of the act of July 14, 1890, was repealed by the act of 

November 1, 1893. 

22 Ibid, op. 90 and 99. 

23 Monetary Units and Coinage Systems of the Principal Countries of the World, 1929, 

pp. 13-14. 

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The law of March 14, 1900, declares that the dollar, consisting of 25.8 grains 

of gold 0.900 fine, " shall be the standard unit of value " and makes it the 

duty of the Secretary of the Treasury to maintain at a parity of value (at an 

equality of purchasing power) with this standard all forms of money issued 

or coined by the United States. Section 26 of the Federal Reserve Act of December 23, 1913, reaffirms such parity policy and authorizes the Secretary of the 

Treasury to borrow or buy gold, if necessary, in order to maintain such parity. 

Further details of interest in connection with the silver certificates 

and treasury notes is given as follows :24 

Silver certificates.—The act of February 28, 1878, authorizing the issue of 

standard silver dollars, provided that any holder of such dollars might deposit 

them in sums not less than $10 with the Treasurer or any Assistant Treasurer 

of the United States and receive certificates therefor, in denominations not less 

than $10, said certificates to be receivable for customs, taxes, and all public 

dues. The act of August 4, 1886, authorized the issue of the smaller denominations of $1, $2, and $5. The act of March 14, 1900, provided that thereafter 

the issue of silver certificates should be limited to the denominations of $10 

and under, except that 10 percent of the total volume of such certificates, in 

the discretion of the Secretary of the Treasury, may be issued in denominations 

of $20, $50, and $100. Neither silver certificates nor silver dollars are redeemable in gold. Silver certificates have largely taken the place in circulation 

of the standard silver dollars which they represent; the silver dollars are held 

for redemption of the certificates on demand. 

Treasury notes of 1890.—It was provided in the 1890 act that when the notes 

should be redeemed or received for dues they might be reissued, but that no 

greater or less amount of such notes should be " outstanding at any time than 

the cost of the silver bullion and the standard silver dollars coined therefrom, 

then held in the Treasury, purchased by such notes." 

When the authority for the purchase of silver bullion under this act was 

repealed by the act of November 1, 1893, the Government had purchased 

168,674,682.53 fine ounces, at a cost of $155,931,002, for which Treasury notes 

were issued. Treasury notes redeemed are canceled and retired in accordance 

with the requirements of the act of 1890. Sections 5 and 8 of the act of March 

14, 1900, provide for the cancelation and retirement of Treasury notes to an 

amount equal to the coinage of standard silver dollars and subsidiary silver 

from the bullion purchased with such notes. They are secured by a reserve 

of an equal amount of silver dollars held in the Treasury for their redemption, 

and the act of March 14, 1900, provides for their redemption in gold held in the 

gold reserve fund. 

It may be added that, apart from a 100-percent reserve in silver dollars, the Treasury notes of 1890 are also secured by the $156,039,088 

gold reserve held as security for United States notes. 

The standard silver dollar is unlimited legal tender unless otherwise 

provided in the contract. The other silver coins are legal tender for 

payments not exceeding $10, in accordance with the Act of June 9, 

1879. The following information on the legal tender of silver coin, 

etc., is from the Bureau of the Mint:25 

Standard silver dollars are legal tender at their nominal or face value in 

payment of all debts, public and private, without regard to the amount, except 

where otherwise expressly stipulated in the contract. Being standard money, 

standard silver dollars are not redeemable, but may be exchanged for other 

forms of money particularly silver certificates. 

Silver certificates are not legal tender, but are receivable for all public dues 

and when so received may be reissued, and they may be held by Federal reserve 

and National banks as lawful reserve. Silver certificates are receipts for actual 

standard silver dollars held in the Treasury and are redeemable, on demand, in 

such dollars only. They may be presented for redemption to the Treasurer of 

the United States or to any Federal Reserve bank or branch. 

24 Monetary Units and Coinage Systems of the Principal Countries of the World, 1929, 

pp. 16-18. 

25 Monetary Units and Coinage Systems of the Principal Countries of the World, 1929, 

p. 12. For detailed history of American coinage legislation} see Fractional Money, bv 

Neil Carothers (New York, 1930). 

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129 monetar y us e o f silve r in" 19 3 3 

Treasury notes of 1890 (the act of July 14) are legal tender for all debts, 

public and private, except where otherwise expressly stipulated in the contract. 

They are redeemable in United States gold coin or in standard silver dollars, at 

the option of the holder, by the Treasurer of the United States or any Federal 

Reserve bank. When received by the Treasurer they are canceled and retired. 

$1,275,500 remained outstanding October 31, 1929. 

United States notes (also known as greenbacks or legal tenders) are legal 

tender for all debts, public and private, except duties on imports and interest 

on the public debt. Since the resumption of specie payments January 1, 1879, 

these notes have been accepted in payment of customs dues. They are redeemable in United States gold coin and will be received for redemption by the 

Treasurer of the United States or by any Federal Reserve bank or branch. The 

amount outstanding remains constant at $346,681,016. 

Subsidiary silver coins (50 cents, 25 cents, 10 cents) are legal tender for 

amounts not exceeding $10 in one payment. They may be presented in sums 

or multiples of $20 to the Treasurer of the United States, or Federal Reserve 

banks or branches, for redemption or exchange for lawful money. 

The last important legislation affecting silver coinage in the United 

States was the act of April 23, 1918, popularly referred to as the 

Pittman Act. This act authorized the Secretary of the Treasury to 

retire silver certificates and concurrently melt or break up or sell as 

bullion the silver represented up to a limit of 250,000,000 standard 

silver dollars. The mint, it was provided, was to purchase silver, 

the product of United States mines and reduction works, equal to 

the amount necessary to replace the silver dollars so melted or 

broken up, the purchase to be made within the then existing regulations of the mint at $1 per fine ounce. 

In pursuance of the terms of the act, the Treasury immediatly sold 

to the Government of Great Britain slightly over 200,000,000 fine 

ounces. The melting of the necessary quantity of dollars, 259,121,554, 

was completed in May 1919. The bullion was sold at $1 plus a charge 

to cover the cost of melting, recoining, and other expenditures. In 

addition to this amount, 11,111,168 standard silver dollars were, in 

accordance with the act, melted and assigned for subsidiary silver 

coinage. However, this transaction was subsequently canceled and 

the silver dollars so melted were replaced with silver dollars coined 

from silver in kind. 

The coinage of silver dollars out of American silver purchased 

under the terms of the act took place from 1921 to 1928. A total of 

270,232,722 dollars were so minted.26 

Possibility of increased use of silver without new legislation.—No 

new legislation is required for the purchase of silver for the manufacture of necessary fractional coins. The Bureau of the Mint has 

stated :27 

There are no limits on the amounts of the several denominations of coin 

that may be issued, except as to silver dollars, which may be issued only in 

amounts authorized by specific legislative acts. No silver dollars have been 

coined since 1904 except for replacing (1921 and 1928) an equivalent number 

destroyed under the act of April 23, 1918, for use as bullion to meet conditions 

brought about by the World War then in progress. 

• Section 335 of title 31 of the United States Code reads as follows: 

Purchase of bulilion for silver coinage; silver-profit fund.—In order to procure bullion for the silver coinage authorized by this chapter, other than the 

28 For other details of the Pittman Act see annual report of the Treasury on the state 

of the finances for the fiscal year ended June 30, 1918, pp. 160-163 ; and hearings before 

the subcommittee of the Commission of Gold and Silver Inquiry, United States Senate, 

1923, serial I, " Silver Purchases Under the Pittman Act." 

27 Monetary Units and Coinage Systems of the Principal Countries of the World, 1929. 

p. 10. 

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130 monetar y "us e o f silve r i n 19 3 3 130 

silver dollar, the superintendents, with the approval of the Director of the 

Mint, as to price, terms, and quantity, shall purchase such bullion with the 

bullion fund * * *. 

The above substantially states the provisions of section 3526, 

Revised Statutes, although the* wording is somewhat different; it 

takes into consideration certain provisions of section 3513, Revised 

Statutes, and modifications of more recent laws. There is no limitation on the amount of subsidiary silver coin that may be issued, 

but the practice of the Treasury is to supply the demands of the 

general public, as reflected by requisitions for such coin reaching 

the Treasury offices through the banks. 

Present employ merit of silver.—The location, ownership, and per 

capita circulation of silver and other forms of currency in the United 

States at the end of March 1933 are shown in the accompanying 

circulation statement of the Treasury. 

CIRCULATION STATEMENT OF UNITED STATES MONEY—MARC H 31, 193 3 

[In thousands of dollars. Owing to abbreviation of the items totals shown in some cases do not agree with 

the summations] 

Kind of money 

Total 

amount 

Money held in the Treasury 

Kind of money 

Total 

amount 

Total 

Amount 

held in 

trust 

against 

gold and 

silver certificates 

(and 

Treasury 

notes of 

1890) 

Reserve 

against 

United 

States 

notes (and 

Treasury 

notes of 

1890) 

Held for 

Federal 

reserve 

banks 

and 

agents 

All other 

money 

Gold coin and bullion, 

Gold certificates 

1 4, 282, 329 

2 1, 308, 260 

540, 008 

2 498, 616 

3, 204, 225 1, 308, 260 156,039 1, 542, 837 197,089 

Standard silver dollars 

1 4, 282, 329 

2 1, 308, 260 

540, 008 

2 498, 616 

506, 450 499,830 6, 620 

Silver certificates 

1 4, 282, 329 

2 1, 308, 260 

540, 008 

2 498, 616 

506, 450 499,830 6, 620 

Treasury notes of 1890 2 1,214 ' 

Subsidiary silver 306.805 

2 1,214 ' 

306.805 15. 353 15, 353 

5,418 

4,217 

45, 280 

4 

15, 819 

Minor coin 126,684 1 5,418 

346,681 ! 4,217 

4,035,769 I 45,280 

15, 353 

5,418 

4,217 

45, 280 

4 

15, 819 

United States notes 

126,684 1 5,418 

346,681 ! 4,217 

4,035,769 I 45,280 

15, 353 

5,418 

4,217 

45, 280 

4 

15, 819 

Federal Reserve notes . _ 

126,684 1 5,418 

346,681 ! 4,217 

4,035,769 I 45,280 

15, 353 

5,418 

4,217 

45, 280 

4 

15, 819 

Federal Reserve bank notes 

966^ 661 15,819 

15, 353 

5,418 

4,217 

45, 280 

4 

National bank notes 966^ 661 15,819 15, 819 

15, 353 

5,418 

4,217 

45, 280 

4 

15, 819 

Total, Mar. 31, 1933 

Comparative totals: 

Feb. 28, 1933 

Mar. 31, 1932 

Oct. 31, 1920 

Mar. 31, 1917 

966^ 661 15,819 

15, 353 

5,418 

4,217 

45, 280 

4 

15, 819 

Total, Mar. 31, 1933 

Comparative totals: 

Feb. 28, 1933 

Mar. 31, 1932 

Oct. 31, 1920 

Mar. 31, 1917 

10, 628, 613 3 3, 796, 766 1,808, 090 156, 039 1, 542, 837 4 Total, Mar. 31, 1933 289, 800 

Comparative totals: 

Feb. 28, 1933 

Mar. 31, 1932 

Oct. 31, 1920 

Mar. 31, 1917 

10,275,505 ! 3 3,832,415 

9, 266, 558 j 3 3, 986, 791 

8, 479, 621 3 2, 436, 865 

5, 396, 597 ! 3 2, 952, 020 

3, 797, 825 i 3 1, 845, 570 

1, 007, 084 j 3 212, 420 

1,734,518 

2, 085, 245 

718, 674 

2, 681, 691 

1,507,179 

21, 603 

156, 039 

156, 039 

152, 979 

152, 979 

150,000 

100,000 

1, 759, 886 

1, 631. 370 

1, 212, 361 

181,972 

114,137 

352, 850 

117, 350 

188, 391 

90,818 

June 30, 1914 

10,275,505 ! 3 3,832,415 

9, 266, 558 j 3 3, 986, 791 

8, 479, 621 3 2, 436, 865 

5, 396, 597 ! 3 2, 952, 020 

3, 797, 825 i 3 1, 845, 570 

1, 007, 084 j 3 212, 420 

1,734,518 

2, 085, 245 

718, 674 

2, 681, 691 

1,507,179 

21, 603 

156, 039 

156, 039 

152, 979 

152, 979 

150,000 

100,000 

181,972 

114,137 

352, 850 

117, 350 

188, 391 

Jan 90,818 . 1, 1879 

10,275,505 ! 3 3,832,415 

9, 266, 558 j 3 3, 986, 791 

8, 479, 621 3 2, 436, 865 

5, 396, 597 ! 3 2, 952, 020 

3, 797, 825 i 3 1, 845, 570 

1, 007, 084 j 3 212, 420 

1,734,518 

2, 085, 245 

718, 674 

2, 681, 691 

1,507,179 

21, 603 

156, 039 

156, 039 

152, 979 

152, 979 

150,000 

100,000 

181,972 

114,137 

352, 850 

117, 350 

188, 391 

90,818 

10,275,505 ! 3 3,832,415 

9, 266, 558 j 3 3, 986, 791 

8, 479, 621 3 2, 436, 865 

5, 396, 597 ! 3 2, 952, 020 

3, 797, 825 i 3 1, 845, 570 

1, 007, 084 j 3 212, 420 

1,734,518 

2, 085, 245 

718, 674 

2, 681, 691 

1,507,179 

21, 603 

156, 039 

156, 039 

152, 979 

152, 979 

150,000 

100,000 

181,972 

114,137 

352, 850 

117, 350 

188, 391 

90,818 

1 Does not include gold bullion or foreign coin other than that held by the Treasury, Federal Reserve 

banks, and Federal Reserve agents. Gold held by Federal Reserve banks under earmark for foreign account 

is excluded, and gold held abroad for Federal Reserve banks is included. 

2 These amounts are not included in the total since the money held in trust against gold and silver certificates and Treasury notes of 1890 is included under gold coin and bullion and standard silver dollars, 

respectively. 

3 The amount of money held in trust against gold and silver certificates and Treasury notes of 1890 shouki . 

be deducted from this total before combining it with total money outside of the Treasury to arrive at the 

stock of money in the United States. 

4 This total includes $80,524,916 gold deposited for the redemption of Federal Reserve notes ($2,663,570 

in process of redemption), $41,787,756 lawful money deposited for the redemption of national bank notes 

($15,777,203 in process of redemption, including notes chargeable to the retirement fund), $1,100,000 lawful 

money deposited for the redemption of Federal Reserve bank notes ($4,335 in process of redemption, including notes chargeable to the retirement fund), $1,350 lawful money deposited for the retirement of additional circulation (act of May 30,1908), and $50,349,522 lawful money deposited as a reserve for postal savings 

deposits. 

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Federal Reserve Bank of St. Louis
monetar y us e o f silve r i n 19 3 3 13 1 

CIRCULATION STATEMENT OP UNITED STATES MONEY—MARC H 31, 1933—Continue d 

Kind of money 

Money outside of the Treasury 

Total 

Held by 

Federal 

reserve 

banks and 

agents

 5 

In circulation 6 

Amount Per 

capita 

Gold coin and bullion 

Gold certificates 

Standard silver dollars 

Silver certificates i 

Treasury notes of 1890 

Subsidiary silver 

Minor coin 

United States notes 

Federal Reserve notes 

Federal Reserve bank notes 

National bank notes 

Total, Mar. 31, 1933_-

Comparative totals: 

Feb. 28, 1933 

Mar. 31, 1932 

Oct. 31, 1920 

Mar. 31, 1917 

June 30, 1914 

Jan. 1, 1879 

1,078, 

1, 308, 

33, 

498, 

1, 

291, 

121, 

342, 

3,990, 

23, 

950, 

8,639, 937 

8,177, 608 

7, 365,013 

6, 761, 431 

5,126, 267 

3,459, 434 

816, 267 

711, 

914, 

5, 

122, 

76, 

369, 

6, 

72, 

366, 501 

393, 499 

28, 347 

376,186 

1, 214 

258, 284 

112, 220 

265, 827 

3, 621, 439 

17,191 

878, 808 

$2.92 

3.14 

.23 

3. 00 

.01 

2. 06 

.89 

2.12 

28. 88 

. 14 

7.01 

2, 320,422 6, 319, 515 50. 40 

1, 632, 540 

1,905, 927 

1,063, 216 

953, 322 

6, 545,068 

5, 459,085 

5, 698, 215 

4,172, 946 

3, 459, 434 

816, 267 

52. 23 

7 43. 80 

53. 21 

40. 23 

34. 93 

16. 92 

5 Includes money held by the Cuban agency of the Federal Reserve Bank of Atlanta. 

6 The money in circulation includes any paper currency held outside the continental limits of the United 

States. 

7 Revised figures. 

NOTE.—Gold certificates are secured dollar for dollar by gold held in the Treasury for their redemption; 

silver certificates are secured dollar for dollar by standard silver dollars held in the Treasury for their redemption; United States notes are secured by a gold reserve of $156,039,088 held in the Treasury. This 

reserve fund may also be used for the redemption of Treasury notes of 1890, which are also secured dollar 

for dollar by standard silver dollars held in the Treasury; these notes are being canceled and retired on receipt. Federal Reserve notes are obligations of the United States and a first lien on all the assets of the issuing Federal Reserve bank. Federal Reserve notes are secured by the deposit with Federal Reserve agents 

of a h'ke amount of gold or of gold and such discounted or purchased paper as is eligible under the terms of 

the Federal Reserve Act, or until Mar. 3,1934, of direct obligations of the United States if so authorized by a 

majority vote of the Federal Reserve Board. Federal Reserve banks must maintain a gold reserve of at 

least 40 percent, including the gold redemption fund which must be deposited with the United States 

Treasurer, against Federal Reserve notes in actual circulation. Federal Reserve bank notes are secured 

by direct obligations of United States on commercial paper, except where lawful money has been deposited 

with the Treasurer of the United States for their retirement. National bank notes are secured by United 

States bonds except where lawful money has been deposited with the Treasurer of the United States for 

their retirement. A 5 percent fund is also maintained in lawful money with the Treasurer of the United 

States for the redemption of national bank notes secured by Government bonds. 

On the place of silver in the currency system of this country, the 

following appeared in The Silver Market:28 

Discussion of silver in the United States today would be incomplete without 

reference to the part played by the metal in our currency system. From 

1793 to 1931, inclusive, the face value of silver money coined in the United 

States was approximately one third of that of United States gold coin minted. 

Of the amount estimated to be in circulation and in the Treasury on June 

30, 1932, the face value of the silver was nearly one half that of the gold 

coins, as the following table based upon Bureau of the Mint figures shows. 

Kind 

Domestic coin 

made, 1793 to 

1931, inclusive 

Estimated in 

the United 

States at end 

of June 1932 

Gold .. . . $4, 447, 518,477 

848, 586, 596 

35, 965, 924 

540, 865, 231 

141,037,058 

$1, 793,828, 454 

540,007,911 

Silver dollars: 

Standard _ __ . . _ . _ 

$4, 447, 518,477 

848, 586, 596 

35, 965, 924 

540, 865, 231 

141,037,058 

$1, 793,828, 454 

540,007,911 

Trade 

$4, 447, 518,477 

848, 586, 596 

35, 965, 924 

540, 865, 231 

141,037,058 

$1, 793,828, 454 

540,007,911 

Subsidiary silver - __ _ 

$4, 447, 518,477 

848, 586, 596 

35, 965, 924 

540, 865, 231 

141,037,058 

304,882,996 

Minor coins _ _ _ . . . _ _ ___ _ 126,493, 326 

$4, 447, 518,477 

848, 586, 596 

35, 965, 924 

540, 865, 231 

141,037,058 

304,882,996 

126,493, 326 

Total 

$4, 447, 518,477 

848, 586, 596 

35, 965, 924 

540, 865, 231 

141,037,058 

304,882,996 

126,493, 326 

Total 6, 013,973 013,973, 286 2, 765, 212, 687 

28 Trade Promotion Series No. 139, by Herbert M. Bratter, pp. 24-25. 

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It should be noted that most of our monetary stock of gold consists not of 

coin but of bullion; hence the part played by gold in our currency system 

is greater than would appear from the table. Since by the act of 1900 the 

Government is obliged to maintain all forms of American money at parity with 

gold, silver certificates (which represent standard silver dollars on deposit 

with the Treasury) are freely accepted by the public at face value, regardless 

of the fluctuating bullion value of the standard silver dollars they represent. 

In demanding silver certificates rather than standard silver dollars, the public 

displays a decided preference for the more convenient paper money. Of 

the 380,000,000 standard silver dollars in circulation at the end of August 

1932, 350,000,000 were represented by silver certificates.29 

Figures, published monthly in the Federal Reserve Bulletin, show, by kinds, 

the money in the United States other than that held by the Treasury or 

Federal Reserve banks and agents. The figures thus represent money in 

circulation, including that held by banks other than the Federal Reserve 

banks.30 

Compared with all moneys in circulation (e.g., in March 1932), silver certificates and coin (totaling $645,000,000 face value) comprised about 12 percent. 

Standard silver dollars and silver certificates in circulation formed about 7 

percent of the total. Standard silver-dollar coins were less than six tenths of 

1 percent of the total. (These percentages represent money in the hands of 

the public and in banks. Using 1928 figures, Y. S. Leong recently estimated 

33.4 percent of the silver certificates and 43.7 percent of the silver dollars 

outside the Treasury were in the hands of banks.) 

The standard silver dollars in the United States are held chiefly in Government vaults. Of the approximate 540,007,911 listed in the table showing 

United States coinage, 501,022,733 of the coins (over 92 percent) were held in 

the Treasury. Counting 0.7734 fine ounce per standard silver dollar, this 

amounted to over 385,500,000 fine ounces. Were this silver made available for 

manufacture into subsidiary coinage at the rate of 10,000,000 ounces annually 

it would last for 38 years. 

URUGUAY 

The monetary value is the peso, divided into 100 centesimos. The 

peso has a par value of approximately $1.0342. 

Present legal provisions.—Since the law of June 7, 1876, silver 

coins have been limited legal tender. A law of October 18, 1890,31 

established a fineness of 0.900 for the silver coins but minting of that 

fineness had actually taken place since 1877. The same law in 1890 

(1892)31 fixed a graduated scale of legal tender which continues in 

force, as follows :32 

Permissible portion 

Permissible amounts of silver coin 

Up to 10 pesos 5 pesos. 

More than 10 pesos, to 25 pesos 30 percent. 

More than 25 pesos, to 100 pesos 20 percent. 

More than 100 pesos, to 500 pesos 10 percent. 

More than 500 pesos, to 5,000 pesos 5 percent. 

More than 5,000 pesos 2 percent. 

Circulation and importation of foreign silver coin was prohibited. 

On January 3, 1916, a law was passed authorizing the Bank of the 

Republic to retire from circulation the silver currency minted in the 

years 1877, 1893, and 1895 and contract for the remintage of new 

29 The figures do not include currency held by Federal Reserve banks or agents nor, of 

course, by the Treasury; but it does include currency held by national, State, and savings 

banks. The 380,000,000 silver dollars are part of the 540,007,911 mentioned in the table 

above. 

30 The location, ownership, and per capita circulation of United States money is published each year, with comparative totals for earlier years, in the annual report of the 

Director of the Mint. The latest such statement appears on pp. 130-31 of this bulletin. 

31 Another source states 1892, instead of 1890. 

32 According to Monetary Units and Coinage Systems of the Principal Countries of the 

World, 1929, p. 87. It should be noted that there is no limit in respect to payments of 

taxes, imports, and customs dues. 

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coins of 1 peso and 50 centesimos, up to the amount of 5,000,000 

pesos, the weight of these coins to be 25 grams for the 1-peso piece 

and 12% grams for the 50-centesimo piece, and their fineness to be 

0.900. 

A law of June 21, 1920, authorized the Bank of the Republic to 

withdraw from circulation 300,00033 peisos of the silver currency 

authorized in 1916", and to remint it into 20-centesimo silver pieces 

weighing 5 grams, 0.800 fine. 

Uruguay's silver coins are described in the following table: 

Denomination 

1 peso 

50 centesimos 

20 centesimos (new) 

20 centesimos (old) _ 

10 centesimos

 1 

Fineness 

0.900 

.900 

.900 

.900 

1 Not in circulation. 

Possibility of increased use of silver without new legislation— 

Whenever silver has been minted or reminted, the Congress has 

passed a special law giving the Bank of the Republic authority to 

strike a specified amount of coin for the Government. From this 

it seems to follow that new issues of silver may not be made without 

specific authorization by law. 

Attitude toward silver.—No legislation respecting silver is known 

to be contemplated. With the peso down to less than half its par 

value and the population well accustomed to the use of paper money, 

there is little likelihood of any increase in the use of silver for 

monetary purposes. 

Present employment of silver.—The silver-peso coin has practically disappeared from circulation and there appears to be a supply 

of 50- and 20-centesimo pieces ample for the commercial needs of the 

country. The last issue of 20-centesimo coins was made in 1930, in 

commemoration of 100th anniversary of the country's independence; 

2,500,000 of the coins were struck in Paris, having a face value of 

500,000 pesos. 

The total number of silver pieces minted up to the middle of 1931 

was as follows: 

20-centesimo 5, 000, 000 

50-centesimo 6, 000, 000 

1-peso 1,550,000 

No figures showing silver coin in circulation are available. The 

stocks of silver in the banks and the treasury at the end of 1931 were 

given by the Director of the United States Mint as 4,000,899 pesos, 

compared with a note issue of 81,031,000 pesos. The entire 4,000,899 

pesos were held by the central bank. Silver coin in circulation at 

the end of 1930 was reported as 1,609,000 pesos, and in banks and 

the treasury, as 3,891,000 pesos. 

33 According to reports from the American commercial attache in 1931, 270,000 pesos 

in silver were withdrawn in 1920 and 180,000 pesos more a year later. 

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VATICAN CITY 

The monetary unit is the Italian lira, divided into 100 centesimi. 

The par value of the lira is approximately $0.0526. 

Present legal provisions.—The monetary use of silver is governed 

by the following agreement : 

MONETARY AGREEMENT BETWEEN THE VATICAN AND TH E KINGDOM OF ITALY STIPULATED IN ROME ON AUGUST 2, 1930 

ARTICLE 1. The Italian Government places the mint at Rome at the disposal 

of the Vatican; and the Vatican binds itself to make use of no other mint. 

ART. 2. The Vatican coins will be identical with the Italian coins in regard 

to composition, face value, dimensions, and weight. 

ART. 3. The Vatican and the Italian coins shall have the same legal tender 

quality in the Vatican City and in the Kingdom of Italy, respectively. 

ART. 4. The Vatican state and the Italian state shall have the option of demanding exchange in Italian currency of the Vatican coins accumulated in the 

treasuries of the Italian state. 

ART. 5. Gold coins may be minted to any amount. The amount of silver, 

nickel, and bronze coins shall not exceed 1,000,000 Italian lire for each of 

the first 5 years and 800,000 Italian lire for each of the following 5 years of 

the present agreement. 

This amount shall be made up as follows: 

Silver 759, OOO lire. 

Nickel _ 236, 000 lire. 

Bronze 14, 000 lire. 

During the second 5-year period these amounts shall be reduced 20 percent. 

ART. 6. The Vatican state may mint coins, when a vacancy of the papal 

throne occurs, above the maximum limit established in the preceeding paragraph, provided the total amount does not exceed 1,500,00 Italian lire during 

the year in which the vacancy occurs. 

ART. 7. Special agreements will be made in case a certain coin is retired 

from circulation by either party. 

ART. 8. The Vatican state has the right to emit up to 10,000 sets of silver, 

nickel and copper monies with the commemorative date 1929 for sale and for 

donation in complete series, with the right to include or not gold coins. 

ART. 9. The Italian state binds itself to apprehend and punish counterfeiters 

of Vatican money who operate in its territory, and the Vatican state assumes 

the same obligation towTard possible counterfeiters of Italian money in its 

territory. 

ART. 10. The present agreement shall last 10 years, with the option of being 

denounced by both parties after giving advance notice of at least 6 months. 

An agreement similar to the above was made December 30, 1931, 

by the Vatican City and the Republic of San Marino. 

Possibilty of increased use of silver without new legislation.—As 

shown below, the above-mentioned limit of 750,000 lire has been 

reached and no additional Vatican City silver can be issued without 

new legislation. 

Attitude toward silver.—No intention to alter the present monetary 

use of silver has been reported. 

Present employment of silver.—At the end of 1931 the amount 

outstanding of Vatican City silver coins (0.835 fine), was reported 

as follows: 

10-lira pieces 500, 000 lire. 

5-lira pieces 250,000 lire. 

These coins are legal tender for payments not exceeding 500 lire. 

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Apparently none of the Vatican City coins are in actual circulation, according to a 1931 report. Pursuant to a decree of January 

13, 1931, based on article 8 of the agreement with Italy, 10,000 sets 

of silver, nickel, and copper commemorative coins, dated 1929, were 

manufactured for sale in sets only, and at a premium of about 

100 lire per set. The face value per set, which includes a 50-lira 

coin, is 88.85 lire. 

The Vatican City mint is no longer used, the coinage being struck 

by the Italian mintVENEZUELA 

The monetary unit is the bolivar, divided into 100 centimos. The 

bolivar has a par value of approximately $0.1930. 

Present legal provisions.—The silver coinage is regulated by the 

monetary law of June 24, 1918, which provides for a 5-bolivar coin, 

0.900 fine, legal tender to 500 bolivares, and four other silver coins, 

0.835 fine, legal tender to 50 bolivares. These four are the 2-bolivar, 

1-bolivar, 59-centimo, and 25-centimo pieces. All of the silver coins 

have a gross weight of 5 grams per bolivar. (Some of the former 

silver 2i^-bolivar coins were still in circulation in 1930.) 

Article 15 of the monetary law states that no law may order the 

minting of silver unless it simultaneously orders the minting of 

double as much gold, but if, when the minting of silver is ordered, 

double the quantity in gold is already in the treasury reserves, the 

executive power may coin only such quantity of silver as the National 

Congress authorizes. 

The exact significance of the latter part of article 15 is not clear. 

Possibility of increased use of silver without new legislation.— 

No official information is available concerning this point. Article 

15 would seem to indicate that no silver may be coined without some 

special law. 

Attitude toward silver.—There is no legislation under consideration at the present time which would affect the use of silver currency 

in Venezuela. 

In general, it may be stated that the use of bank notes is preferred 

by the average business house and individual in the larger cities and 

towns, due to the cumbersomeness of silver for large transactions. 

However, in the rural districts there is no decided preference for 

paper money, as the purchasing power of the peon class making up 

the major part of the population is low, and the small shopkeeper 

and merchant in the country villages require considerable quantities 

of small denomination currency. The smallest denomination banknote in the circulation is 10 bolivares, equivalent at par to $1.93. The 

general impression in banking circles is that the country's present 

supply of silver currency is entirely adequate and that any further 

coinage in the near future is improbable. 

Present employment of silver.—Venezuela's stock of silver and 

other coin at the end of 1931 totaled about 84,200,000 bolivares, of 

which the bulk was in circulation. Coin in circulation on June 30, 

1931, amounted to 56,916,798 bolivares. 

The circulation of silver and nickel coin, combined, was estimated 

at 85,000,000 bolivares as of June 30, 1932. 

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136 monetar y "us e o f silve r IN 19 3 3 136 

VIRGIN ISLANDS 

The monetary unit is the franc, divided into 100 bits. Five 

francs equal one " Danish West Indies dollar " 34 worth approximately $0.9648. 

Present legal provisions.—Under the treaty negotiated at the time 

the United States purchased the Virgin Islands from Denmark in 

1917, the Danish currency then in use was retained, including notes 

of the National Bank of the Danish West Indies and the coin which 

had been specially minted for the islands, corresponding in value 

but not in designation to the coin of Denmark. This arrangement 

is still in effect; but with the expiration of the charter of the bank 

in 1934, American currency alone will remain in circulation. 

The law establishing the currency system of the Virgin Islands 

was put into force on March 29, 1904. 

Silver coins, as well as gold and gold notes, are unlimited legal 

tender for taxes and public dues, but for private obligations silver 

is legal tender in amounts not exceeding 25 francs. 

The existing system provides for silver coins as follows: 

Denomination Fineness Gross 

weight 

5 francs 0.800 

.800 

.800 

.800 

Grams 

25.0 

10.0 

5.0 

2.5 

2 francs --

0.800 

.800 

.800 

.800 

Grams 

25.0 

10.0 

5.0 

2.5 

1 franc 

0.800 

.800 

.800 

.800 

Grams 

25.0 

10.0 

5.0 

50 bits . . 2.5 

0.800 

.800 

.800 

.800 

Grams 

25.0 

10.0 

5.0 

2.5 

0.800 

.800 

.800 

.800 

Grams 

25.0 

10.0 

5.0 

2.5 

Present employment of silver.—Silver currency in the Virgin Islands at the end of 1930 was estimated at $66,000 according to the 

1932 report of the Director of the Mint. 

WINDWARD ISLANDS 

The monetary unit is the pound sterling, divided into 20 shillings 

of 12 pence each. The par value of the pound sterling is approximately $4.8666.35 

The British coinage system applies to the Windward Islands. 

YUGOSLAVIA 

The monetary unit is the dinar, divided into 100 paras. The 

dinar has a par value of approximately $0.0176. 

Present legal provisions.—With the stabilization of the currency 

by the law of May 11, 1931, gold and silver coins minted in accordance with previous laws ceased to be legal tender. 

The law of November 28, 1931, provided for the issuance of 

200,000,000 dinars of 10-dinar and 250,000,000 dinars of 20-dinar 

silver pieces. In July 1932 the Ministry of Finance, through the 

National Bank of Yugoslavia, put into circulation silver coins of 

34 This unit was coined under the name " five francs 

35 The British West Indies dollar, a unit of account equivalent to 4 shillings and 2 

pence is in use, but is not coined. The value of the West Indies dollar was fixed at 

4 shillings and 2 pence by Ordinance No. 13 of 1879. 

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137 monetar y us e o f silve r in" 19 3 3 

10 and 20 dinars.36 These coins are 0.500 fine, and are legal tender 

in amounts not exceeding 500 dinars. The gross weight of the 10-

dinar piece is 7 grams, and that of the 20-dinar piece, 14 grams. It 

was the original plan of the Government to withdraw from circulation the existing 10-dinar notes as soon as the issue of silver 10-

and 20-dinar coins was made. However, in view of the reported 

widespread complaint that there was insufficient money of small 

denominations in circulation, it was decided to release the new coinage without retiring the bank notes. The latter operation is left 

until a later date, when circumstances may be more favorable. 

On August 15, 1932, a law was passed providing for the issuance 

of 550,000,000 dinars of 50-dinar pieces, 0.750 fine and legal tender 

to 1,000 dinars. The purpose of this issue was stated to be that of 

meeting a budget deficit. In January 1933 it was reported that the 

50-dinar silver coins had been issued. 

Possibility of increased use of silver without new legislation.— 

Silver can be issued only in accordance with legislation especially 

passed for the purpose. 

Attitude toward silver.—The Government, through its finance 

minister, has stated budget balancing to be its purpose in issuing 

silver coins. Yugoslavia itself produces very little silver (in 1931, 

95,000 ounces) and there is evident no tendency to make silver a 

standard of value. It is said that the future attitude toward silver 

will be the same as that of France. 

Present employment of silver.—When the present program is completed, 1,000,000,000 dinars in silver coin will be in circulation. This 

compares with a note circulation of the National Bank of the Kingdom of Yugoslavia amounting to approximately 4,773,000,000 dinars 

at the end of 1932. 

Up to December 31, 1932, there had been delivered to the national 

bank 419,200,000 dinars in newly minted silver coins. Of this 

amount, 331,057,660 dinars were in circulation on December 31, 1932, 

88,142,340 dinars being held by the national bank. The 50-dinar 

coins were first put into circulation on January 23, 1933. In the 

middle of March 1933 it was estimated that there were approximately 450,000,000 dinars of the new silver coins in circulation. 

ZANZIBAR37 

The monetary unit is the British Indian rupee, divided into 16 

annas. The rupee has a par value of approximately $0,365. 

The British Indian rupee is legal tender without limit as to maximum payment. Apart from the fractional Indian coins, a %-rupee 

silver piece, proportionate in weight to the rupee, is especially coined 

for Zanzibar. 

British East African and British currency circulate in Zanzibar 

at a small discount. 

Present employment of silver.—At the end of 1931 monetary silver 

totaled 1,700,000 rupees, of which the treasury held 200,000; the 

banks, 500,000; and the public, 1,000,000 rupees. 

33 During 1932 the French Mint struck 4,000,000 10-dinar pieces. 

37 Politically Zanzibar is a part of British East Africa, but its currency system is 

different. 

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STOCK OF SILVER IN VARIOUS COUNTRIES, INSOFAR AS KNOWN i 

Country 

Albania francs. 

Algeria do... 

Anglo-Egyptian Sudan 

Egyptian pounds.. 

Australia Australian pounds. 

Austria schillings. _ 

B arbados pounds. 

Bolivia bolivianos. 

British East Africa pounds. 

British Guiana U.S. dollars. 

British India rupeesBritish North Borneo 

Straits dollars. 

British Somaliland poundsBritish West Africa do... 

Bulgaria levs. 

Canada dollars. 

Ceylon rupees . 

Chile pesos. 

China fine ounces. 

Colombia pesos. 

Costa Rica colones. 

Cuba pesos. 

Cyprus pounds. 

Czechoslovakia koruny. 

Danzig, Free State of gulden. 

Denmark kroner. 

Dominican Republic dollars. 

Ecuador sucres. 

Egypt Egyptian pounds. 

Estonia krooni. 

Ethiopia.-Maria Theresa dollars. 

Fiji Islands pounds. 

Finland finnmarks _ 

France fine ounces . 

French Guiana U.S. dollars. 

French Indo-China piastresGermany reiehsmarks. 

Gr eece dr achmas. 

Guatemala quetzales. 

Haiti U.S. dollars. 

Hedjaz Saoudi ryals. 

Honduras... 

Hong Kong. 

lempiras . 

.Hong Kong dollars. 

In circulation 

Thousands 

In banks 

Thou921 

80,355 

807,182 

28,160 

10, 344 

11,551 

1,494 

12,000 

148 

518,000 

6, 269 

None 

5, 011 

2, 018 

35,000 

25 

None 

None 

3,957 

1,676,000 

1,192 

1,500 

250 

53,000 

2,403 

2,807 

150,000 

16, 779 

In treasury 

Variously 

held 

Thousands 

845 

219 

1,106,636 

6, 446 

3, 731 

5, 710 

4,000 

51 

44, 300 

29, 554 

320 

50,000 

None 

2,000 

6,000 

36, 611 

"l3,~ 043 

(

4) 

117,000 

Thousands 

150 

tJ2,966 

t§205 

fjl, 433,000 

U15 

17, 544 

rl, 600,000-

2, 000,000 

J §282 

3 J§3, 269 

tJ4,158 

t§194 

ttl88,000 

J §17 

tu, 900 

Date of holdings and 

remarks

 2 

See footnotes at end of table. 

138 

1931. 

1931. 

1931, 

1929, 

October 1932. Bank holdings for national bank 

only. 

1930. 

1932. 

June 1931. 

1930, 

1931; treasury figure, end 

of 1932. 

1931. 

1931. 

1931. 

March 1933. 

October 17, 1932. ' 

1931, The circulation figure covers subsidiary coin 

only. 

March 1933. 

[•1932. 

October 1932. 

Figure includes 564,020 colones of silver certificates 

representing silver in bank. 

1933. 

1931. 

Circulation figure 1932; banks 

figure, representing silver 

in National Bank of Czechoslovakia, 1931. 

1931. Banks figure, Bank of 

Danzig, only. 

1931., Bank of Denmark 

holdings. 

1931. 

1932. 

1932. 

April 1932. Represents 195,-

000 fine ounces. 

1931. 

1931. 

1931. Bank of Finland. 

1932. 

1930. 

February 1933. New piastre 

coins only. Old coins and 

subsidiary silver not included. 

October 1932. Reichsbank's 

usual holdings about 275,-

000,000 reichsmarks. 

October 1932. 

1930. 

1931. 

May 1932. Saoudi ryals 

only. 

1932. 

November 1932. Total equals 

about 150,000 fine ounces. 

(See section on Hong 

Kong.) 

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Federal Reserve Bank of St. Louis
139 monetar y us e o f silve r in" 19 3 3 

Stock of silver in various countries, insofar as knoion—Continued 

Country 

Hungary pengo. 

Hyderabad o.s. rupees.. 

T f British dinars_ 

r a q "\Indian rupees. 

Irish Free State pounds_ 

Italy lireJamaica U.S. dollars. 

Japan yen_ 

Latvia lats. 

Lithuania litu. 

Madagascar francs. 

Malta pounds. 

Mauri tius rupees. 

Mexico 

Morocco (French, Spanish, and 

international zones) francs.. 

Mozambique pounds.. 

Netherland India florins.. 

Netherland West Indies-guilders--

Netherlands florins.. 

New Guinea, Eastern pounds.. 

New Zealand do 

Nicaragua cor dobas _. 

Norway kroner.. 

Nyasaland pounds _. 

Palestine Palestine pounds.. 

Panama balboas. -

Persia krans. 

Peru soles.. 

Philippine Islands pesos.. 

Poland zlote.. 

Portugal escudos.. 

Rhodesia, Southern pounds.. 

Rumania lei.. 

Sal vador colones.. 

Sarawak Straits dollars.. 

Siam bahts.. 

Southwest Africa pounds.. 

Spain pesetas.. 

Straits Settlements 

Straits dollars.. 

Sweden kronor.. 

Switzerland francs -. 

Syria Syrian pounds... 

Trinidad U.S. dollars.. 

Union of Soviet Socialist Republics 

rubles.. 

Union of South Africa pounds.. 

United Kingdom do 

United States of America..dollars.. 

In circulation 

In banks 

Thousands 

10, 268 

194, 000 

201 

12,184 

712 

1,635 

25, 200 

10, 890 

17, 550 

2 

380, 600 

2, 667 

io 1, 000 

307 

24,900 

144 

287 

532 

ii 18, 053 

15,119 

98, 512 

32, 480 

400 

1,078 

*2,178 

(

4) 

loo,"000 

Ifl 51,800 

158, 980 

i" 5, 250 

267, 600 

1,600 

Thousands 

(

5

) 

9, 441 

12, 478 

1 

» 46,105 

*5, 471 

12*6, 620 

17 *4,194 

(21) 

(22) 

In treasury 

Thousands 

6 5, 329 

13,800 

1,500 

4,774 

18C 

200, 000 

13~6,~343 

i< 43,372 

(

4

) 

is 58 

Variously 

held 

Thousands 

t§], 454 

tJ465, 736 

tt§20,000 

J §55 

U200, 500 

$§552 

ttl34, 700 

J§28,183 

ft350,000 

m , 840,000 

917 

521,804 

20 405 

19 49,000 

23 f $622, 782 

Date of holdings and 

remarks

 2 

1931. The 1,454,000 pengo 

are in the treasury and 

central bank only. (See 

section on Hungary.) 

September 1930. Also in circulation in 1930 was an 

estimated 5,000,000 rupees 

of British Indian currency. 

{

British Indian coin figure, 

March 1932; Iraqi coin 

figure, September 1932. 

1931. 

1932. Circulation figure applies to September. 

1931. 

1931. 

September 1932. 

November 1932. 

1931. Old 5-franc coins. 

1931. 

May 1930. 

January 1933. (See section 

on Mexico.) 

1931. 

1931. 

1932. 

1931. 

February 1933. 

1931. 

1930. 

August 1932. 

1932. 

1931. 

1931. 

1932. 

1932. Issued under 1930 law. 

Other silver coin, including 

American, not included. 

February 1932. Replacement 

of krans by rial has since 

commenced. 

1932 

November 1932. United 

States silver and silver certificates in circulation not 

included. 

June 1932. 

Oct. 31, 1932. 

1931. 

1932. Represents 4,141,000 

fine ounces. 

1932. Some United States 

silver also circulates. 

1931. Includes paper money 

and minor coin. 

1932. 

1931. 

January 1933. 

For details, see section on 

Straits Settlements. 

1931. 

1931. Central bank holds a 

negligible amount. 

1932. 

1930. 

1931. 

1931. 

March 1933. Circulation figure includes $376,185,000 

of silver certificates. The 

figure $160,809,000 includes 

silver certificates totaling 

$122,431,000. 

See footnotes at end of table. 

172120—33- - 1 0 

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140 MONETAR Y USE OF SILVER I N 1 9 3 3 

Stock of silver in various countries, insofar as known—Continued. 

Country 

In circulation 

Date of holdings and 

remarks

 2 

Thou- Thou- Thousands sands sands Thousands 

f§4,001 1931. 

1931. 

tt§84, 200 1931. 

66,000 1930. 

March 1933. 

1931. 

Uruguay 

Vatican City.. 

Venezuela 

Virgin Islands 

Yugoslavia 

Zanzibar 

U.S. dollars. 

.bolivares-. 25 *85,000 

.rupees-. 1,000 500! 200 

dinars-- 450,000 

pesos.. x, 609 

lire.. ii 750 

1 An asterisk (*) indicates figure includes coin of other metal than silver. A dagger (f) indicates "in 

circulation"; a double dagger (t) indicates "in banks"; a section mark (§) indicates "in treasury." 

2 With few exceptions, the data represent the end of the year or month mentioned. 

3 1931. 

4 Negligible amount. 

•5 Bank of Italy, 107,000 fine ounces. 

6 Fine ounces. 

7 1928. 

8 March 1933. 

9 Or 11,500,000 fine ounces in Bank of Java. 

i° 1930 estimate. 

n Outstanding. 

" September 1932. 

13 In treasury-certificate fund as partial security for certificates in circulation. 

14 In the form of baht coins. 

I

3 Bank of Spain's stock. 

is Outstanding 1928. 

17 In Bank of Sweden. 

18 Includes Turkish coins estimated to be worth 4,000,000 Syrian pounds. 

191931. 

20 In treasury and central bank. 

21 In banks of United Kingdom and Irish Free State, but not including 15,789,000 pound? in Bank of 

England. In Bank of England, Jan. 18, 1933, 3,716,000 pounds. 

22 Held by Federal Reserve banks and agents only, $160,809,000. 

23 Not including amount held by Federal Reserve banks and agents. 

24 1930. 

25 June 1932. 

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ADDENDUM 

THE GERMAN RECOINAGE PROGRAM 

Submitted by Sidney B. Redecker, American consul, Frankfort-on-Main, April 1, 1933. 

This information supplements that given in the consul's report quoted on pages 61 and 

62. It will be noted that not all of the. later figures agree with those earlier reported 

The plan to reorganize Germany's coinage, announced some weeks 

ago^:as definitely authorized by governmental Decree on March 18, 

1933. It will involve the most comprehensive reform of Germany's 

coinage since the reichsmark was stabilized in 1924, and will effect 

currency of a total nominal value of around 1,600,000,000 reichsmarks. The program will extend over a period of 3 years. 

The reorganization will involve the release for sale by the Reich 

of about 640 metric tons1 of fine silver (having a current market 

value of about 25,000,000 reichsmarks) and will create a demand for 

about 1,280 metric tons of nickel, valued currently at about 5,000,000 

reichsmarks. The surplus of silver to be thus created will represent 

about 10 percent of the present annual world mine output of the 

metal. 

Under the plan the present issue of one hundred fifty two million 

5-mark pieces, weighing 25 grams each, containing 12V2 grams of 

silver (1,900 metric tons of silver in all), and having a value of 

760,000,000 reichsmarks, will be withdrawn, and there will be issued 

instead new coins of smaller size (that of the existing 3-mark piece). 

The new coins, however, will contain the same quantity of silver 

as the present larger 5-mark coin, so that the silver content of the 

new coin will be increased to 0.900 instead of 0.500 as at present. 

This operation, therefore, will involve no change in the amount of 

silver required for the 5-mark pieces. 

The 3-mark coins, numbering 90,000,000, with a total nominal 

value of 270,000,000 reichsmarks and containing a total of 675 tons 

of silver, will be entirely withdrawn and no new coins of this denomination issued. The silver resulting from the melting down of this 

denomination will be used for the minting of additional 2- and 5-

mark pieces, so that presumably no surplus metal will result from 

this particular operation. 

In the case of the 2-mark pieces, of which there are at present 

107,000,000 with a total nominal value of 214,000,000 reichsmarks 

(and a fine content of 535 tons of silver), it is planned to reissue 

these coins 0.625 fine instead of 0.500. The additional silver required 

will be obtained through the melting down of the 3-mark pieces, as 

mentioned above. 

1.1 meric ton = 1,000 kilograms = 32,150.7 fine ounces troy. 

141 

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142 monetar y "us e o f silve r i n 1 9 3 3 142 

From a metal-trade point of view, the really interesting part of 

the entire reorganization plan will be the change in regard to the 

1-mark pieces, of which 256,200,000 reichsmarks, representing 640 

metric tons of fine silver, are outstanding. These pieces will be 

entirely withdrawn from circulation and replaced by new coins of 

nickel, thus creating a demand for 1,280 metric tons of nickel. 

The elimination of the 1-mark silver coins will also yield around 

640 tons of copper, to which should be added the copper from the 

3-mark coins to be demonetized, and the decreased copper content of 

the new 5-mark pieces. The copper so obtained will, of course, have 

little commercial importance. 

Despite the estimated charges of 30,000,000 reichsmarks involved 

in the recoinage, it is not expected that the changes will cause great 

expense to the Government, since a considerable profit will be 

realized from the substitution of nickel in the 1-mark coins. This 

profit, it is anticipated, will amount to around 20,000,000 rtfchsmarks, plus a certain return from the sale of excess base metal, 

so that most of the costs will be covered. 

In view of the scope of the coinage plan and due to the desire 

to avoid undue pressure upon the price of silver such as would be 

caused by the sale of the entire surplus at one time, it is proposed 

to proceed with the minting work gradually and spread it over 

a period of three years. Moreover, the Government is especially 

desirous of spreading sales over a long period in its own interest, 

for it is reported that the Netherlands also contemplates similar 

recoinage operations involving the release of about 500 metric tons 

of silver. It is also reported that for the refining of this metal 

a silver refinery will be established in that country. Netherlands 

hitherto has been dependent upon foreign refineries. The new 

Dutch plant will have a per diem capacity of 500 kilograms

 2 of 

silver. 

2 1 kilogram = 32.1507+fine ounces troy. 

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