The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1916-04-20
MONETARY STATE
SILVER AFTER WAR

Continued advance in the price of
silver is in response to the financial
situation of the nations now involved
in war and their dependencies. The
movement is not unexpected, although,
on the other hand, there are many who
have anticipated more pronounced
advance. A price of 20 cents an ounce
is reasonable prediction which is
heard in many quarters. The element
of doubt in the situation is the future
relationship of silver to the currency
of the several principal nations. If the
price of the metal is to be stabilized,
as a result of the necessities growing
out of the war, the virtual effect is re-
monetization. Sterilization and rem0n-
etization are practically one and the
same thing, for we can not have one
without the other. If large measure
of dependence is to be placed upon sill
yer in the currency system of the Eu-
ropean nations, a demand for bi-metal-
ism is apt to arise among them. The
question then will be, what will be the
position of the United States when the
matter of introducing silver as
money standard is fairly presentedf
1t is because of our doubt as to the
willingness of the banking interests of
the United States and of the members
of Congress to reopen the subject of
currency legislation, even in the face
of a disturbance abroad, that we ex-
press so much uncertainty concerning
the future status of the white metal.
To remonetize silver, even at a ratio
of 32 to /, would be precisely contrary
to the tendencies of current legislation
and currency systems heretofore. In
deed, there is strong party of econo-
mists who advocate the restriction of
the gold standard, or rather the shift
ing of the money standard to a broad
er commodity basis controlled by the
banks through the medium of CONNER
cial and industrial credit. If this be
the tendency of the future, we will
then be left to found our hope of
good price for silver upon the usual
market influences. The metal will
hold price because the requirements
of the world are increased, not because
any additional money quality has been
bestowed upon it.
Since the outbreak of the war the
price of silver has declined and recov-
cred throughout a range of more than
Is cents an ounce. The metal is now
selling about Is or 16 cents an ounce
above the minimum of 1914 and 1915.
If it be true, as the Editorial Survey
has often suggested, that the real de-
mand for silver will become effective
after the war is over, the recent ad-
vance may be accepted as a harbinger
of peace. This notion has had some
prevalency in the press, but we believe
that it is a result of a confusion of
cause and effect. 1t may be that the
demand for silver merely reveals an
extremity among the belligerent ma
tions which betokens the approaching
exhaustion of arms; beyond that, the
suggestion is valueless. The practical
man will prefer to know the immedi-
ate, not the remote, causes of silver s
advance. All the European nations are
apparently in the market for silver to
be used in the redemption of the masses
of paper currency recently uttered. All
financial writers call attention to the
serious initiation in the currencies of
those nations. Again, the Asiatic de-
mand for silver is now very heavy,
particularly in India, where the bank
ing reserves are low. A condition of
financial stress is reported from Bonn
bay and Calcutta. All these infences
taken together serve to account for the
better figure for silver, as well as for
the expectations for the future. 1t has
been a long while since the miner re-
ceived 20 cents an ounce for his silver,
and it will be a welcome situation If
it returns.-Mining American.