New-York tribune., 1918-02-25
No Mystery in
Great Rise Of
Silver Prices
Demand for Arts and Coinage
Far Exceeds the Supply

There is no greater mystery in the
rise of the price of silver than in the
rise of the prices Of other commodities
which has occurred during the war
according to "The Statist," Of London.
1t is simply due to reduction in the
quantity produced and to an increase
in the demand for the metal; in other
words, the normal working of the law
of supply and demand.
For more than ten years before the
war the worlds output of silver had
varied between 165,0OO,OO0 ounces and
226,000,000 ounces, the output rising
to it's highest amount in 1911, when it
exceeded 226,000,OOO ounces. Of the
great silver producing countries
Mexico until recently contributed
about one-third of the total supply
but since the revolution in that coun-
try her contribution to the worlds
total has fallen, roughly, from So
100000 ounces to little over 3O,OOO,-
900. No other source of supply has
increased its output to such an extent
as would make up for the loss from
Mexico. The great silver producers
besides Mexico are the United States,
with between 60,000,O0O and 70,OOO,OOO
ounces, Canada, Australasia, Central
and South America and Japan. None of
these countries has increased its out
put, with the exception possibly of
Australasia, and certainly the United
States; but here, again, the figures
are those for 1915.
Consumption in Arts
"As far as Western countries are
concerned" says this authority, at is
commonly said that something more
than half the consumption is to supply
the demands of the fine arts, as dis
tinct from the need of coinage. II
this statement is intended to argue
that the demand for the arts has been
materially reduced as the result of the
war, inquiries we have made on the
subject do not bear out this conten-
tion. On the contrary. we find large
body of opinion holding the view that
the demand for the arts has increased
rather than diminished as result of
the war. 1t is, of course. evident that
practically all over Europe the wealthy
classes, as distinct from mere officials.
nave to large extent ceased from en-
tertalnlng, and the demand in conse-
quence for silverplate has fallen to p
minimum. But the war has BROUGHT
into the market vast number of new
buyers for ornaments, whose demand
in the aggregate is estimated to more
than compensate for the falling off in
the purchases by the wealthy classes
of silverplate Wages everywhere. not
merely in England, but practically all
over the world, have advanced. and mar
tlcularly in Western Europe; more
over, immense numbers of women, and
even children, are being employed who
were not employed before, and those
who were employed before have g
larger income, particularly among the
wage-earning classes, than has been
the case in this country (England) for
many years past.
Then we have the demand for coin.
age. Before the war we did not merel,
reckon our money in pounds sterling;
hnt the nnInd
known coin. which we were all accus.
toned to handle. Since the war ro1d
has disappeared entirely from cir.
culatlon, and in the form of COINAGE
very few of US who are not bankers
ever see 1t. Paper money and silve,
token money have entirely taken its
place, and, as prices are out of all nro
portion to what they were before. the
demand for Treasury notes, and moro
particularly the silver token money
has increased to still greater extent
before the war mintage of f2 900 O0C
sterling in value was a rare occurrence
except in one or two years in Kino
Edwards reign, when a great deal nj
old coinage from the Victorian period
was called in. Since the war the coin.
age of silver has increased three O,
tour times over. This is true not
merely Of England, but Of all countries
either engaged in the war or who are
IN any way so situated that they car
supply commodities upon any consider.
able scale to satisfy the demands OF
the Allies.
East Greedy for Metal
"But even the demand for Europe
and North and South America is no,
the whole Of the tale, for reliable esti.
mates point to the conclusion that
about half the annual production OF
silver throughout the world is absorbed
by the East, meaning principally lndis
and China. 1t has to be borne in minl
that prices in the East have advanced
as we'll as in Europe and the twC
Americas, and, consequently, more
token money is required there as vel
as here. Silver is the standard al
value. and not token money at all. ir
China; and in India, while gold is
nominally the standard of value, the
rupee is the actual coin in which the
Indian natives, as distinct from mere
government officials. reckon thei,
wealth. Now. as one result of the wan
nearly all the governments forbid the
export of gold; consequently, India re
quires steadily increasing supply OF
silver, not merely to do the work thai
silver did before the war. but, in add