Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-25
Sill YER DECREASE
CAUSING ALARM
Use as Currency in Some
Countries Contributes to
Hard Times, U. S. Told.
BY MARK SULLIVAN.

A phase of discussion about the bust
ness depression which is gaining mo-
mentum, has to do with silver as cur
rency in countries other than the
United States. The discussion began
In very small way some four months
ago. It has now reached such volume
as to suggest the possibility, at least,
that there may he ahead of us in
America considerable debate about
that most controversial subject-cur-
rency.
The subject is not only controversial,
but infectious, especially in periods of
depression. Small outburstS of discus
sion have appeared in newspapers in
the Western part of the United States.
A great volume of argument is coming
from Europe and Asia, especially Asia,
where the question is extremely acute.
1t is the wish of foreigners to stir Up
interest in America and thereby bring
about international action. United
States Senators and other officials in
Washington receive almost frantic APP
peals to bring about an international
conference. In one section of the
United States, the silver-mining States,
there is q particular and strong in
terest.
$4,000 for Research.
Upon the initiative of Senator Oddie
of Nevada, the Department of Com
merce has recommended that fund of
$4,000 be devoted 10 research into the
silver problem. Senators King of
Utah and Pittman of Nevada have
taken steps which look, in the case of
Senator Kings purpose, to an interna-
tional conference to establish q fair
ratio between gold and silver. This is
the measure which William Jennings
Bryan 40 years ago proposed for Amer
lea alone and which led to his nonina-
ton for the presidency on q platform
demanding that silver have q fixed ratio
to gold expressed by the figures 16 to /.
To state the underlying facts in the
simplest form, silver has fallen in value
from about 80 cents per unit to about
80 cents. Silver is the chief form of
currency in Asia, Mexico and some
countries of South America. Because
silver has fallen in value, these countries
cannot buy in accustomed quantity
from either the United States or Europe.
Furthermore, and even more import
antly, because Asia cannot buy from
Europe, Europe cannot buy from the
United States.
This cycle is held by the friends of
silver to be a chief contribution to the
present depression in America. In adj
dition, according to Senator Kings
argument, Americas possibility of in
creasing its exports depends upon the
revaluation of silver as currency on a
higher basis.
The facts so far stated, emitting argu-
ment and inference, are clearly ac-
curate. 1t is a fact that Asia's power
to purchase has been sensationally re-
duced. China's purchases of some
staple articles from England have fallen
within a year to less than third of
HNT6i-
ton, England's capacity to buy from
the United States is reduced.
The discussion of the subject in
countries where the subject Is acute
partakeS of the violence that usually
attends controversies about currency.
One English writer says Until Asia's
power to purchase is restored, there can
be no economic relief for Europe" The
editor of the Shanghai China Press
says:
UNLESS silver as an honest medium
of exchange is again restored to its posi-
ton in the currency systems of the
world, the commercial collapse of Asia
will extend its fell influence over the
whole world and bring down In ruins
the entire elaborate fabric of CONNER
cial and financial interdependence that
civilization has so slowly and laborious-
ly erected"
u. S. Concern Least.
America is less concerned directly
than other countries. To the extent
that America is an immense self-con-
tanned Nation, it can return to normal
conditions regardless Of silver curren-
cies in other countries. Also it is ap-
parent that the worst harm coming
from the fall Of silver is behind us, since
silver can hardly go farther. 1t is never
theleSs fact that currency conditions
in several countries are such as may in
feet America with controversy on the
general subject of currency. The prob
ability is made greater by the fact that
the quantity Of gold coming out of the
worlds mines tends to diminish. An in
huence working in the contrary direc-
ton is the establishment of the new In
ternational Bank for settlements, which
should be able so to mobilize gold as to
permit safely larger quantities Of paper
currency based on gold.