The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1920-05-06

standard upon that vast dependency
has cost her e1 1861, 100000 of her pre-
cious gold supply and midas appetite
is still Unsuitable. She can persist in
this fatuous purpose only at the cost
Of her own solvency; and that will not
avail her. She has learned by a Bit
ter and ruinous experience that it is
I as easy to change the tides as to tear
a vast and unprogressive people from
their ancient moorings and set their
/ course supon another direction under
new commanders, however intelligent.
As well try to wean them from their
religious faith, their time honored
superstitions But for Americas re-
serves Of silver. and her prompt re-
Spouse to Englands cry for aid, Brit
aims financial bark would, in April.
1918. have foundered on the shoals
and reefs of midas desperate require
ments.
The immediate need of the world is
steadiness of exchange. The rate is
important of course, but fxity is
vastly more so. How to secure it is
tremendous problem, involving many
factors But one of these is obvious.
The situation needs the stimulus Of
larger specie basis. If the worlds
supply Of gold could be doubled over
night, hnanciers would be vastly re-
leved, exchange would rise with a
bound and international trade would
Of &c a mr.
assment But that is impossible; so
impossible, indeed, that nations hoard
their supplies of gold with all a mis-
er's avarice
But this great boon can be accom-
plished if we Will. through the reha-
bilitation of silver and the restora-
ton of its monetary function by fix
ing some ratio of International ex-
change between itself and gold The
specie basis is thus doubled without
the slightest impairment of its quail
ity. The process requires the open
ing of no mint to its coinage, If that
be an objection. Coinage, indeed. is
nowadays of little consequence Gold
better serves the modern monetary
world i'm bars than in eagles and Sow
ereigns. Moreover, it thus escapes
abrasion. Except as fractional cur
rency which must be supplied. silver
in bullion can be made quite as SER
viceable,
1t is unnecessary TO recount, much
less to review, the merits of the old
but always interesting controversy
over bimetallism. 1t will suffice to re-
mind the reader that its opponents
have always concentrated their heavy
guns upon its low commodity value
when quoted i'm terms Of gold, and up
on its relative abundance as compar-
ed with gold. The first is no longer
true but the second never was. The
demand for silver as money ever in
creasing since 1914 has forced its
value beyond its historic ratio with
gold, ana threatens to drive fractional
coins of that metal into the melting
pot. Its fXity of ratio by internatiOn-
al agreement has therefore become
quite as essential TO gold as to itself
To do this, now that the ratio of bull
lion values is the virtual equivalent
of coin values, is an easy task No
disturbance. direct or indirect, can
now attend or result from such ac-
ton.
The apprehension that the rehabih
tation of silver would quicken its pro-
duction glut the market. force gold
from circulation and demoralize fin
ance never had any substantial foun-
dation. Undue production of neither
metal is possible save at rare inter
walls More than ever is this state
mont now true The big gold deposit
and the silver bonanza are things of
the past The search for both metals
rewards Of the prospector are few and
far between.
Save Siberia. Central Africa. and
some districts i'm South America. the
earth has been pretty thoroughly ex-
plored for gold and silver Annual ac-
cretons are becoming more and more
the byproducts of the base metal mi
ming industry. Down to 1917 the
worlds art aggregate supply of silver
and gold is estimated for S15.507 1866 /
5Sl and S1199sS24211, respectively |
This Includes the coinage Of silver |
S5.O9l. 926,6Os. and Of gold. SSSSS.977- |
92S The demand for both metals is
equally Unsuitable.
Moreton Frewen whose study Of /
monetary systems. including the me-
chanism of exchange. covers a period |
Of nearly 40 years. declares the |
worlds annual demand for silver
equals 62OOOO,OOO ounces as against a /
present annual output Of $4,000 OOe |
ounces He presents this table Of the /
items comprising the demand:
Ounces
New silver to liQuidate In
dias annual balance of
trade .-.. .-...... $50 600 600 |
Currency requirements Of
Nigeria. West Africa, Ger
man and British East At
rica .................... 100. OOO. 900 |
demand on
800 aon nnn ]