Perth Amboy evening news., 1923-09-17
hsssaSA' sypdiss,s. Inc. N

WASHINGTON, Sept. 1.-THE
World Wan dethroned King Silver as
we'll as the Kaiser and other auto
Gratis. While silver never had oc-
eupied so commanding a position as
gold, still it was a precious metal.
held in high esteem both in the arts
and industries and for money. The
substance still maintains it's popu-
larity in the arts, but as a monetary
factor it has been dethroned in many
jurisdictions. Gold is the only mon
etary factor to come out of the
crucible of war worth as much as
on the day of the first outbreak.
Everybody knows the way in
which the paper currency of practl-
cally every country in the world ex-
cept the United States has declined
until, in such countries as Germany,
Poland, Austria and Russia, the
lower denominations literally are
not worth the paper they are printed
upon. The Department OF Com
merce has just concluded an ex-
haustive study showing that silver,
as a monetary counter, shared to
some extent in this depreciation.
The department made a thorough
Investigation of what happened to
this precious metal during the war
and the troubled years following the
armistice and reached three major
conclusions. They are:
First, silver has been d~ethroned
from its pre-war strength in fifteen
countries. There has been a reduc-
ton in the weight and ineness of sill
yer coins in Brazil, Chile. Costa Ri
ca, Mexico, Peru, Canada, Great
Britain. Holland, Ceylon, China
French Indo-China, India, Japan,
Siam and the Straits settlements.
There are movements afoot LOOKING
to the restoration of the pre-war
values, but when a money once mas
been debased it is almost impossible
to restore its value.
Silver Driven Into Hiding
Second, the flood of inconvertible
paper currency has driven vast guam
titles Of silver into hiding or causeu
it to be melted down into bullion ana
shipped to markets where hlgher
nriees are paid. This is In accord
ance with Gresham's Law, a well
recognized law of political economy.
The law holds that when two quail
ties of money are in circulation IN
a country. one cheaper than the
other, the inferior money will drive
| out the superior variety. h Is
because the man who has q good,
| heavy silver coin or piece OF gold
will not pay it out and put 1t into
circulation If he a buy VIA he
want with paper money, the luture
| value of which has reason to DOUBT
He will keep his good coin.
Third, a decline in the general de-
mnnd of the public for good money
has decreased the demand for silver;
| So many generations have passed
over our heads during which paper
money has been used that the pup
lie has become accustomed to &C
| cepting paper money as having val
ne. even though, In some countries
It be a nuctuating value. whereas,
In former times, many people WEI
suspicious of paper money ana III
sisted on metal, now nearly everyone
is educated to the use of paper notes.
This naturally has caused a oecrease
in demand for silver. -
These three major development
have depressed the price of silver
hnlIion to around so to SIS cents al
@ounce in the world market. Dur
inV the war days the price was mgr
as S1.35 an ounce. u
These events have spelled mart
times for the silver miners. Inv
cost of production of silver hal IN
creased lust as has the cost or pro
d,cinp shoes or lumber. the cos
became so high that, during IN
war. the United States liked a pro
Of, 81 per ounce for American MN
Cd silver. Very large quantltle
we're purchased by the government
~ tbis price. Had this figure no
been fixed 1t would have been neces
sarv for the treasury to pay pernap
as high as $3.50 for enough SILVER =
make :. silver dollar. Such a situa
zion would have resulted in the u
inc of silver dollars by many PEG
ME. by giving gold, paper money o
checks. and the melting OF the sllve
: dollars into bullion. A man coul'
have bought one hundred silver dol
| lars with 800 in gold, melted TN
dollars into bullion and sold II Q,
weight for $3.50. Such a situation
6 was intolerable, so the government
nxed n maximum price Of VI pc
ounce for silver. There Is one ounc
in the standard silver dollar.
! 1t was not long before the prle
came ~cascading down so that IN
: eovernment-nxed price was aboN
the open market price. The Amerl
: can government still was paying >
| per ounce for silver when silve
in Europe brought only 10 cents
lThis spring ths PittmenT act unos