Wood River times. [volume] (Hailey, Idaho) 1882-1915, 1892-12-08
THE SILVER PROBLEN.

| SournAI
The Engineering and Mining Jou,-
nal has already November 5th, 1922
pointed out the disastrous effects Of
the depreciation Of silver which will
ensue if no effective plan for use be
proposed by the conference.
No effective or durable plan can
be based on the purchase of limited
amount. Of the metal; all that il
offered must be taken and paid for in
gold or its equivalent. No plan
which does not unite the interests Of
the participants and remove any in
duce ment to violate it, can be perma.
nent.
Having closely studied the silver
question both from the producing and
the commercial sides, We would suRpes.
. plan which aims at an absolute. Der.
manent, and complete solution of the
problem.
Or. Soetbeer's proposition to make
the ratio between gold and silver 20
to ! is sound; prob bly, no higher
ratio could be maintained for MANY
years without greatly producing
silver, owing to improvements in it's
metallurgy. His proposition to use
silver in all coins and certificates of a
less denomination than IS is also good,
and it would, it Is estimated by some
authorities, provide an additional use
for some s2OO.OOO,OOO OF silver. II
necessary to still further incre ase this
amount it can be done safely BY re-
quiring that all certificates of from IS
to $40 shall be redeemsb le in gold
and silver in equal proportions, while
certificates At $40 or above would be
payable in gold or silver at the option
ofholder. These propositions provide
for utilizing the silver in coin or in
certificates representing the metal.
What we would propose as a CONS
plets solution of the problem, not a
temporary palliative or expedien,,
may be briefly outlined as follows:
The appointment by the associated
nations (which we assume would BE-
all nations) OF an International None.
'ary Clearing house, witt powers:
!. 10 ascertain, periodically, the
amount OF money. that is, of gold, sill
yer aud uncovered notes. held by each
country during the preceding one CT
two years. These amounts to form
the basis for the proportions in which
the several nations will Join in the
purchase Of all silver offered.
z. Every national transaction in
the purchase or sale Of money to pass
through the clearing house.
<. This monetary clearing house
to purchase, for common account, suci,
an amount Of silver (say rs per cent.
OF their holdings) from each of the
silver basis countries a. is necessary
to put it Oh the bime,allic basis, and
to allot this silver among all the asso>
ciated countries.
4. The clearing house can issue
international certificates, redeemahl-
IN gold or silver, At holders option,
for The gold and silver purchased.
o. The clearing house to determine
from time to time, saw at intervals of
0 or 10 years, what, if any, change in
the value.ratio of gold and silver i,
called for by the changed conditions
Of production.
3. The transactions of the none.
tary clearing house to be published
daily or weekly.
This clearing house to be compose q
OF one or more representatives of each
country and to act through the minis
Of the several countries as repositories,
and to have central clearing house
at one OF the capitals.
Such, in outline, is a plan tina,
would render the interests Of all ia
tions identical, that would put, and
maintain. all on the gold basis ard |
would increase, be. Dad any limit that
has ever been suggested, the facilities
for international com me rec, aud ould |
practically increase in an enormous
degree tho availability or usefulness
OF the worlds supply If money.
Tho amount Of money. that is, of
gold, silver and uncovered notes, in
the world, is, in round numbers,
appro ximately elO,O0O,OOO,OOO, OF
which nearly one half is held by four
nations: France having about II per
cent, the United States lGa per cent
Germany 9 per cent, the United
Kingdom per cent. Englsnd's quota
/" the purchases Of silver would there's
fore be but Z per cert. India would
sell say 100000, 900 of silver for gold,
OF which England would contribute
$l4.OOO,OOO and would receive the
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