The New York herald., 1921-04-25
London's Control Of Silver.

Consul-General SKINNER, writing
from London, relegates TO Its proper
sphere another false assumption, akin
TO the belief that London would lose
Its place as the financial centre Of the
world as result of the war, when
he recites In 4 report to the Depart
ment Of Commerce that the events OF
the last six years have not weakened
but If anything have strengthened
English control Of the worlds silver
markets. IIe submits the testimony
of London financial authority that
''outside competition would hardly
stand a chance within the next fifty
years, II then"
As with the numerous other finan-
Of London bankers, the chief reason
usually cited TO show why England
enjoys valuable prerogatives in the
silver market, like the power Of fixing
the price Of the metal each day for
the whole world is that English
bankers have been long In the field
and have carefully preserved their
privileges, taking equal care not TO
misuse their power themselves nor TO
allow any change which might enable
anybody else to share IT,
This matter of scrupulous observ-
ance of the rules OF trade and fam
ing prejudice against changing Gus
tom is deeply ingralned in English
business practice. In the control of
silver as in other affairs II has two
virtues: BY laying down rules salts
factory to customers and never vary
ing from them even for the sake of
large momentary profit, a -olld, salts
fed clientele Is built up; by avoiding
change the danger of turning up
something favorable TO outsiders
/ Is avoided
The financial authority quoted by
Consul General SKINNER goes on TO
amplify his confidence In London's po-
sition in the silver market by saying
First OF all, broker requires q
| clientele on both sides OF the ledger;
for instance. at present the large
supplies OF Continental silver result
Il Ing from the melting down Of Cont
4 mental currencies come to the brokers
through their old Continental cus-
toners. collected together Into their
books through the experience OF years
and years !. IT is not a business
which can be taken hold OF at FIVE
minutes notice and proceeded with In
the absence OF long and inherited
experience"
London has an ample supply Of the
"long and inherited experience" In
fact 50 ancient Is its premiership in
The silver market that even In London
the leadership Of the four houses in
control "is 80 firmly established as
10 have given rise TO the impression
that the brokers by whom the daily
changes are recorded operate under
4 patent from the Grown, oil others
being prohibited from participating In
the transactions"
This Of course IS not true. The
silver market IS free, or Mt least IL
once was free. But in 1896 MocArTA
& GotDsMrD, the first bullion brokers
authorized to do business for the
Bank Of England, laid the foundation
FOR monopoly based on priority
rather than privilege. This firm was
followed by SHARPE & WILKINS, PIX.
LEY 4 ABELL and SAMUEL MoNTAGU
\ Il CO., who went Into the bullion busi.
ness nj later periods. and by reason OF
\ their thorough knowledge of the silver
markets ana their other advantages
were able 10 divide control Of this
metal among themselves.
/ But II does not seem Irrelevant 70
introduce here the suppositlon Or the