The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1920-08-10
FLUcTUATIoN IN SILVER PRICES.

The nntitness of silver as a monetary stand
ard has again been demonstrated by the recent
Unprecedented movements in the price OF that
metal. Within year silver quotations have
lfluctuated more than one hundred per cent. IN
1.-THE London market and seventy per cent. IN the
New York market.
In some countries the high prices OF silver
lied to the melting and sale of boards OF the
metal accumulated during the war and even to
the melting and sale of circulated COINS. Some
countries in order to retain their small change
were forced to lessen the amount OF silver IN
their subsidiary coinage or to substitute COINS
of base metal for silver. As a result OF these
Developments, the demand for the metal tor
coinage purposes slackened, and today the de-
pendencee of the world on silver for coins is less
widespread than it was.
The National Bank of Commerce in New York
City emphasizes as an important factor in the
| high price of silver the decline in production,
particularly in Mexico, where, largely because
of political disturbances, the output fell from
seventy -one million ounces In 1913 to twenty
Ell ght million ounces in 1914, only to fluctuate
between the latter figure and sixty three million
ounces in 1919. There is no evidence, the bank
says that the mines in Mexico are becoming
naturally less productive, and "there is every
reason to believe that the Mexican output, once
the political atmosphere has cleared, will be at
least as large as before.
In discussing the probable future price of sill
iver, the bank says:
The result of the purchase provisions of the
P1ttman and of the mint regulations is to
| tabish separate and distinct markets and quo
tations for silver. In the United States, domestic
commercial silver so fine is virtually pegged at
1 99h If the price for foreign silver should
above $1.00 per ounce, treasury purchases
i would automatically But the price would
| probably get much above $1-00. The annual
II output Of the United States is about onethird
II that of the world, and price materially
II above S1O0 would add this amount to market
II ply, increasing it possibly by onehalf 1t would
II therefore that the price could at most rule
Il only fractionay higher than the Putman law
figure, unless it is be supposed that demand
and supply should both be as abnormal as during
i the period.
/ 1t has frequently been asserted that greater
use of silver as standard o redemption money
/ would be inevitable of stabizing in
currences, particularly in view OF the
decline gold production But It is apparent that
! if new silver be relied for this purpose
many years before adequate reserves for
existing be accumulated Unless the
price OF silver goes above $1.00 per fine ounce,
the purchase clause of the Pittnan act Is repeal
ed output the United States will not for at
Least three years available for these reserves.
used either 1t must be adopted by
some countries the exclusive monetary stand
| ard or legal ratio between the values OF gold
and silver settled Either alternative
i the question of bmeta1sm
! A return to bimetalism in all probability