Tombstone epitaph., 1920-06-27
FAR EAST OPTIMISTIC
 ON SILVER PRICES


 Wilson is right. the world war is not over. especially financially. Bull lion dealers on the Continent and sil- yer producers in canaGa insist that it is just beginning. The sensational drop in silver prices is one of the dramatic developments of the week, but at the approaching Spa confer ence. demands for war indemnity set dement's are likely 10 produce dis sensions and ruptures, even pe;ween the Allied governments. hardly con ceivable several months ago.
 The change in the gold and silver holdings ot the na;:ona: 3anK oi Ger many. aided by the Japanese er:sis. is responsible for the SS-oen; price of silver this week AS We indicated previously. officials of this German bank adopted the attitude early this year that an effort should be made to build up a silver reserve against the rapidly vanishins-and anricipat- ed-total exhaustion of its gold re- serves from March 25 10 April 9 was from si.0l5.Sa0 10 f3.4S5,60). On May 2 these reserves dropped to ElS3,s5o and practically render this item negative.
 Three weeks ago We disputed the statement of samuel Montague & Go. of London tmade May s). that 65.- 542, ,000 marks in silver or about 10l. million ounces had disappeared from that banks weekly statement. We were correct 10 this exen; because this bank statemen; is rather eonclu- sive evidence On May l3 his firm amended their original statement as follows: We understand that the silver. to which we recently referred as lately withdrawn from the hold ings of the German Reichsbanx against notes. is still in the custody of that bank. but that il is consider ed as a mere commodity-silver now being demone;ized :n Germany"
 The total gold and silver reserves of the German banks are now s210,. ss7 900 or really a little less than $27O. .o00, 900 since what silver was left two weeks ago has probably van ished by this time.
 IL will be. CT should be, observed that during May The officials of the German national bank were appar- ently convinced-rathe- suddenly, too that silver was 70 be regarded in the future as a mere commodity and current newspaper reports to the sale of German silver for cash"
 A revised statemen; Of cash" hold ings of the banks Of Europe will show as of current date that this cash is now in excess Of fifty bil- lion dollars-exclusive of Russia and that they have three million dol. lars less in silver or that all nation al banks of Europe have bu; s3,000,. 900 900 in gold and silver.
 The problems al the Spa confer. ence viii certainly 5e stupendous an conjecture is rather pronounced al present to determine who is going to accept German paper money" in settlement of war claims. Italy has this week announced that she will demand 10 per cent o: the total wal indemnity rather than per cent, bu' how she will get this in old fashioned money-gold and silver.-is difficult to determine. The Economic Counci of the League of Nations recently re ported that Europe was suffering from paper prices" but since Europe has less gold and silver-al though Great Britain is an exception since the war rather than more against increased paper money cir culation, this reverse procedure will probably require the special efforts of mighty prestidisita;or.
 The related gold situation is equal ly complicated and interesting France has issued an ultimatum tha she will oppose any movement o gold from Russia or Germany unles! by special agreement" The Rus sion trade agreements in Londor |