The circle banner. [volume] (Circle, Mont.) 1914-1939, 1922-09-22

These figures clearly disclose the
scarcity of silver throughout the
world. They demonstrate beyond ar
gument the impossiblity of greatly
increasing the production.
Now, let us consider what is the
demand for silver. We have already
considered the demand for silver in
India, which came to crisis during
the war.
Chinese Medium
Economists all know that China
measures all values by silver, in the
form of bullion. Commerce can not
be transacted in China except through
the medium of silver. The demand
for silver in China has always been
enormous. This demand is now de-
pressed because of the failure of crops
in China and the deplorable economic
and political conditions existing there.
And yet, it is evident that China is
going to revelop rapidly in the next
few years, and with this development
will come greatly increased demand
for silver
Silver is the money of general cir
culation in all of the South American
republics. AS the commercial devel-
opment of those countries increases,
the demand for silver there must nat
urally increase.
''It is admitted that in India and
China are the largest markets for
silver. And yet in our own country
during 1920 the director of the mint
purchased 26,0OO,000 ounces of silver
for subsidiary coinage, nearly half
of the total production of silver In |
the United States.
"A1l of Europe uses silver for sub
sidiary coinage. During the war there |
became such a tremendous demand in
Europe for silver coins with which to
pay certain of their soldiers that con-
European countries were
compelled to melt up silver plate to
replenish these coins, and when the
was signed these countries
were denuded of silver.
Price Advanced
did they want the silver? Did
hey need the silver? Witness what
happened Immediately after the sign
ng of the armistice. These countries
went into the open market of the
world, to compete in the purchase of
silver with China and India. This
natural demand and purchase carried
he price of silver above dollar an ,
'unce, it reaching its maximum price
# S1.38A an ounce on November rs,
919.
Then the price commenced to re-
EIDE until the month of May, 1920, I
yhen the worlds market price of sill I
er went below 81 an ounce.
What was the cause of this sud-
en- drop in the price of silver :
throughout the world? China was
acked with famine and torn to pieces
18th political disturbances. Germany,
eing without gold or credit, was
ompelled to remelt the silver coins
nat she had laid in Immediately after
ne armistice and dump such silver
ulllon on the market at any price
ne could obtain, because it was the
My thing that had a value with
hich she might purchase in foreign
Other European countries
i'd the same thing. Even melted up
s silver and threw it on the markets
the world for same reasons.
Natural Depression
'The depression, therefore, of sill
or was natural. And yet all of these
must again supply them
lives with silver for subsidiary coin
soon as they have credits or prod
cts with which to buy silver. Not
lly that, but as the countries of
urope become prosperous they will
ssire and undoubtedly will replace
leir silver plate that they melted
} during the war and during the last
veral months.
I'm the United States alone during
e past year there was over $4,000
10 ounces of silver used in the arts.
it not natural that when European
untries become prosperous they will
e their proportion of silver in the
is? The high price of our silver,
re the high price for many of our
her products, must wait upon the
osperity of the rest of the world.
ley will buy our products when they
n sell theirs.
"The moving picture industry is to-
y one of the largest users of silver,
ID this silver when once used is de-
royed and goes out of existence.
lis industry is increasing demand
r silver.
These facts prove bewond doubt
at in the near future there will be
eat competition in the purchase of
yer. In the future the ruinous COM
tition of the sale of silver will be
oided. Such competition is bound
carry the price of silver above a
liar an ounce. 1t may be within
e year, it may require two years,
t in any event it is almost certain
at the price of silver will go above
dollar an ounce before the fund for
3 purchase of American-produced
yer under the Pittman act is ex-
listed.
If this takes place, then the gov
nment will cease to buy silver when
goes above dollar an ounce, and
3 fund will remain on hand as
Instant assurance and guaranty to
'et any emergency at any time to