The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1920-01-08
WILL STABILIZE DOLLAR
EXCHANGE IN ORIENT.
MAY RELEASE COINED SILVER
IN U. S. TREASURY TO MEET
NEW CONDITIONS.

Release by the United States gov
eminent of standard silver dollars,
now in the treasury is intended ac-
cording to William c. Lane, vice pres
ident of the Guaranty Trust company
Of New York, to stabilize dollar ex-
change in the orient and make it pos
slble for American importers, partic-
ularly those dealing In China, to con-
tinue to buy in that market without
the necessity Of paying the premium
that an unbalanced exchange brings.
The danger was" said Mr. Lane,
that American buyers in China
would find themselves in the same
position that European buyers in the
United States have already reached.
The demand for metal to settle ex-
listing balances has already forced
American exchange in the orient to
heavy discount as against the silver
equivalent and the price Of silver In
turn has reached a point beyond the
value of the contents of the coined
dollar. The release of the free dol
lars now in the treasury will bring
into the market the silver necessary
to pay our immediate debts, and the
hope is that some other method of set
tement may be found for future COM
mtments.
Silver Standard Of Value.
"The situation may be more clearly
understood if it is remembered that
whereas with us silver is a commod-
ity in China, as in India and in certain
other oriental countries, 1t is STAN
dard of value. Moreover, in China, the
natives even those who are in sympa-
thy with other occidental countries,
insist when it is a question of the set
Element of debt, upon receiving &C.
tual metal. For four thousand years
Chinese debts have been settled in
gold or in silver. 1t is impossible to
persuade them, perhaps for another
four thousand years, of the disadvan-
tages Of this method.
During the war, the governments
of Europe purchased great quantities
of supplies in the Chinese ms rket For
a while the scarcity Of tonnage pre-
vented the ready shipment of much
of the material so purchased. Even
after the armistice had eased the Of
fetal demand, the general industrial
demand for Chinese goods continued
When at last the shipping was avail
able, as it has been for the past few
months, Chinese goods came into thu
markets of the world in great abund
ance.
"The world did not have the good
to send in return. In the first plac
China has not the need for many Eur
opean or American goods. She use
cotton prints of course, but she is get
ting to the point where she manufact
ures herself a large proportion OF he
lcloth and the bulk of the remainin
demand Is met by the Japanese
Moreover, the shelves of Europe ar
so denuded that her own factories
working necessarily under difficulties
and our own, on top Of them, are nc
able to supply the European demant
The average American manufacture
or exporter is so taken up with fillin
domestic and European orders that h
has little interest in the oriental dc
mand. Accordingly, the shipment
which are made-and they are fc
goods necessary in our industry an
; in our arts-must be paid for in meta
Gold is not available, so silver mui
, be used.
Ability to Absorb Silver.
"The ability Of the Chinese mark
to absorb silver is enormous. Ever
: ship leaving Pacific ports has carrie
great quantities of bullion, and appal
emily the demand has grown eve
stronger for we have watched II
price of silver climb with hardly
: break, even when the shipments hal
/ been the heaviest. Silver received
Shanghai or Hongkong in the form
Y bullion has remained in the posse
e sion Of the foreign banks but sho
n time, but has been rapidly paid out
: meet bills incurred by buyers in t
: market and has been absorbed In
e the interior, while the price OF t
r American dollar has steadily sagget
1.-The only great reserve OF silv
: remaining in the world, outside OF t
= occidental countries, is that held
the United States government
y so called free dollars, released by t
l. redemption of silver certificates. U
y der the terms of the Pittman act, Il
l. silver may be released, and 1t will
l. remembered that 2O0,OO0,O0O ount
IL were turned over to the British &c
n eminent a year ago to enable II
government to meet its Indian oblie
r, tons Now that the United Sta
t. treasury has agreed to release al
lg tional amounts Of silver, this will
made available to the Amerie
lg banks with branches in the orient
es that American importers can sci
~ 1T. .o1oooos IN tho only Way n