Mohave County miner and our mineral wealth., 1922-06-23
SiLuer ReserUes Needed

Europe badly needs more metal re- serves. Why not more silver, which has been allowed to decline in use since 1913? An increase of cents an ounce to Il cents in the foreign price in the last month has been as cribed to the belief that long deferred currency needs in silver must be met.
 Increased demand for copper, lead and zinc in recent months is increas- ing production. Incidentally it adds to the output of silver long held at a low point, partly by the poverty of governments and the widespread de- pendence on printing-press money.
 Two-thirds of America's pre-war silver production was by-product of copper, lead, zinc and other metal min ing. As these increase the silver con- tent of their ores comes upon the markets. In Mexico, Canada and Aus tralia, the largest foreign producers, much silver is produced by the same process of mining and smelting other metals. The poor market for the sil- yer by-product in the last two years has tended to raise the price of the other metals produced with it. ..
 The world has been economizing in the use of silver money since 1914. The substitution of vast amount of notes, with constantly shrinking per- centage of metal reserves, has brought many countries to the point of bank ruptcy. Nearly a dozen European currencies are discounted more than 90 per cent in the foreign exchange market. The National City Bank re- gently placed the ratio of gold to re- serves in 36 principal countries at 6.7 per cent, against more than 63 per cent. in 1913. Paper circulation was placed at 122 billions, against 7.3 bill lions in 1913.
 Disbelief in the ability of the low rated countries to redeem this noun tain of paper from their molehills of metal has sapped their credit. They must substitute a more substantial currency before their place in the markets is restored. Their effort to maintain gold reserve worthy of the name failed long ago. A repudiation in fact of discredited paper has fol- lowed. as represented in the 90 to go per cent. discounts. Rebuilding new currencies is the problem ahead of them.
 If the money of 1914 would satisfy the needs of Europe today the prob lem would be easy. She possessed lately gold reserves of about 2,S35 millions, or two millions more than in 1914. Unfortunately she also has con- tracted enormous debts payable in gold. Repudiation of these would precipitate new miSeries on millions who derive incomes in part from the debtor governments payment of in- terest. There has been an increase of European debts of more than 200 billions in eight years. The interest charge alone amounts to nearly nine billions annually.
 faxes are leVled 10 pay these charges as we'll as to maintain armies because of the menace of Bolshevism' and of mutual distrust and .. still threatening conflicts. <. Taxes are ad- ded to the prices of goods and ser vices. Prices thus range from !77 per cent. above 1913 in Switzerland to 46,700 per cent. above that level in Russia.
 Until such normal conditions are changed for the better the volume of currency that served in 1913 will not enable Europe to transact the same volume of business today as in pre- war years. We must expect that the retired paper issues will be replaced by others as large at least as the various national reserves justify. Some of these countries, like Austria and Russia, have no gold reserve on which to base any currency. Ger many's situation is little better Their position is embarrassing to others as well as themselves. They