Evening star., 1924-01-20

AS 4 nation, we Americans like to
talk about our democratic simplicity,
but actually, if given a chance, we
eagerly proceed to shine with royal
splendor. Since many Of us have
had a lot of war-made money to
spend we are buying diamonds at a
prodigious rate. Diamond necklaces
and bracelets that would have de-
lighted even the jaded eye of Lorenzo
the Magnificent are casually worn
by the wives and daughters of our
industrial barons. while diamond
rings and wris6 watches lend a
sparkle to the otherwise heavy
atmosphere Of our business Offices.
1t is this American passion for dia-
monds, in fact. which but recently
brought the diamond producers OF
the world safely through critical
period Of depression and placed them
securely on their feet. And it is to
the rapidly Increasing demand for
diamonds in this country that these
same producers look for a busy and
brilliant future.
So saws DR. George Frederick
Kuntz, our leading gem expert, who
has just issued another report show
ing our large diamond expenditures.
In a little more than half century
this country has spent $4,000, 100000
for diamonds. In the five decades
from 1867 to 1917 about $3.50, 100000
worth of diamonds was imported.
During the five years that followed
the importation of diamonds rose to
$500. 100000, or to nearly one-third
of the total amount that had been
imported in the half-century before.
In other words, our demand for dia-
monds has grown vociferous since
the war.
Not the Total Bill.
But this $4,000, 100000 does not rep
resent our total diamond bill. 1t
simply covers the cost of the raw
stones when they came into Ameri-'
lean ports. There are several other
items on the bill besides-such as
duties, sales tax, the cost of cutting
and setting the stones and the by
no means small profits of the sellers
which bring the total up to nearly
double the original price of the
stones.
The largest demand for diamonds
occurred in this country in 1919, the
year after the war, while the least
demand was recorded in 1914, the
year the war broke out. All during
the war the diamond producers en-
joyed enormous prosperity, which
reached it's climax in 1919. Then, alb
ruptly, the market suffered a terrific
per, and some of the most important
South African mines were forced to
close down.
The cause of this depression is in
teresting to note-it was the sudden
dumping on the market of vast guam
titles of diamonds by Russians and
Germans. The diamond trade was
aware, of course, that large deliveries
of diamonds had been made to Ger
many and Russia just before and dur
ing the war, but the reason for such
huge purchases was not made fully
clear until the war was over. Then
it was surmised, according to Dr.
Kuntz, that the aim had been ito
stabilize the financial status of these
countries, for diamonds offered a per-
manent security for Investments
against the inevitable breakage of
the currency.
Diamonds rs Securities.
When this occurred, in 1921. he says,
the majority of the accumulated dia-
monds were thrown upon the market
by the German and Russian owners.
That the stones had not been bought
to be cut and set into jewels was
clearly indicated by the fact that in
many instances packages still bear
| ing the original unbroken seal. and
| each containing diamonds worth