Tombstone epitaph., 1921-12-04
cHiNA'S PAPER MONEY
 PANIC RESULTS IN ExcEP-
 TioNAL DEMAND FOR SILVER

decide on a fixed" price for silver produced and used in that country is not entirely new since it has been un- der consideration for several years. but it may be highly significant as re- gards future world silver prices. Of the silver produced last year amount ing to around I5S000 900 ozs., about 66,000. 000 ozs. represented the contri- button of Mexico This country pro- duced more than 55.000O00 ozs., so that both countries are responsible for more than two-thirds of entire world output It is estimated that this year production from other than Mexican and United States sources will be even smaller than last year.
 This would mean less than 4O,OO0.- co ozs for general consumption from new ores and at less than the fixed" price providing Mexico proceeds with it's present intentions.
 According to the Mexican Finan- c:er." of Mexico City. the Mexican Government will establish pool consisting of all the silver producers of this country for the purpose of forcing an increase in price as it did shortly after the world war"
 Some authorities in New York this week doubted the financial ability of the Mexican Government to carry out this plan, but others pointed to the apparent ability of the mining com panies there b achieve this result if they would agree to withhold their output from the market for a period of months.
 According to Washington sources the Federal Administration does not contemplate any arbitrary fixing of exchange money rates. but is working on a stabiiization plan This involves "bimetalsm by international agree ment,T and the Government. it $ said. is now making careful study of the silver situation.
 China recovered from its paper money panic this week with compar- atively slight impairment of its chief monetary medium, silver
 The failure some time ago Of the FrenchcChinese Bank, the Banque Industrielle de Chine. and the default on the bank notes issued by that in stitution failed to convert the Chinese to the paper money standard and the run" on the Government bank, that of the Bank Of China, is but another symptom of this refusal to deal in Il o. Us" somewhat erroneously la Eelled as real money.
 London bullion brokers were quite lcen to take advantage of these de- velopments and quoted silver at 6S iS cents bid on the 22nd inst, and al 6. 3-i as the New York equivalent The actual bid at Shanghai, however, was .0 cents. and represented only a one-cent drop from the high" of the previous day.
 It is expected that the somewhat favorable developments at Washing ton will have a generally good effect on Chinese conditions.
 Indian appears to be still out of the silver market. Its cotton business, however, is exceptionally large Those from Bombay during the past week amounted to 10000 bales. Total since Sept. r is 4s3, 900 bales, against 230,000 bales last year.
 The L. s. A. Government secured 2,193,00 ozs. of domestic silver at the s1-net price during the pas: week Total purchased this year to date is 52,S47.S63 ozs., and s2,s55,s6S ozs. since June r.
 The latest statement of silver movements issued by the Federal Re- serve Board, Nov. 1 to 10, shows ex- cess exports of s1,s10.ssS (value), which is in market contrast with re- cent previous reports. Total ship ments to China amounted to $l,345,- s1s. direct. and about s2,29S,42s in direct. In the imports Mexico con- tributed ssss,Ss2. Shipments to Lon don were sS42, 500.