Evening star., 1931-05-18
NATIONS SHUN Lead
IN SILVER PROBLEM
Writer Believes Effect on
Trade May Bring Return
of 1896 Agitation.
BY MARK SULLIVAN.

Examination of actual developments
about an international conference on
silver reveals that the present expecta-
ton rests on having China issue the
call. In last week, 1t was expected
Japan might take the lead. Inquiry in
that quarter revealed, however, that the
Japanese government is not so ready to
act as the promoters of the idea hoped
Speaking broadly, the prevailing atti-
tude of practically all the European
governments and of our own is one of
wishing the conference to be held, but
of reluctance on the part of most of
them to be the one to initiate the call.
They are all dressed up and ready to
go to the party but they want some
one else to issue the invitations and
take the responsibility For this reluc-
tance, each nation has its own reasons.
A close survey of what is being done
shows that as respects the United
States. the principal active agencies
promoting the conference are small
number Of Senators from States having
large silver Mines especially Senators
Pittman of Nevada and King of Utah.
They have in part an obvious interest
in making better market for silver.
Lately Senator Borah of Idaho has join
ed them. To stop with saying these
Senators are the principal active
agencies would be misleading. SYM
pathy for the idea of an international
conference comes from some OF the
most powerful and most conservative
financial circles in the East. 1t is
equally clear that thought about silver
is increasing throughout the country as
an incident of the business depression.
It would not be impossible for this
thought some sound and some unsound,
to become a formidable wave approx
mating the one which eliminated in the
81 frga Nf
1896.
Have Different Aims.
The several groups of promoters of an
international conference have two
principal detectives widely differing
international agreement to add silver
to gold as basis for currency, with
the purpose of greatly increasing the
quantity of money in the world. The
ratio commonly proposed Is that an
ounce of silver should be regarded as
having fixed value of one-twentieth
Of an ounce of gold. The present actual
value of silver Is about one-siXtieth
that of gold.
To another group of promoters of an
international conference this purpose is
utterly repugnant. If this second
group felt that the conference would
result in making silver basis Of cur
rency in countries where gold is now
the sole basis, they would much rather
not see the conference held. This more
conservative group believes, however,
that an international conference could
take certain concrete, but less porten-
tious, steps which would be helpful
without at all threatening the gold
standard.
One specific step this conservative
group contemplatcs has to do with In
Ia no priffcI1
eminent declared for India a 10-year
program of adoption OF a complete gold
bullion basis of currency. AS part Uf
this program, India has been selling
silver from its treasury and from its
retired silver coins melted down. This
sale Of silver has had its part in de-
pressing the price everywhere. Hence
the suggestion of completely conserva-
tive bankers in America and Europe is
that Great Britain should agree to
cease selling silver from the Indian
treasury. Accompanying this step
could be "gentleman's agreement" by
other nations, including America, not
to see any Of the silver they may have
In their respective treasury vaults until
after silver shall rise to price agreed
upon. Another step of the same kind
would be that France and other Euro
pean nations should return to the use
of silver for small coinage instead of
the paper. bronze and alloys which
these nations have been using since the
Great War. This would provide an ad-
ditional market for silver bullion.
Oriental Trade Suffers.
These two differing categories Of pro-
posals will be brought up in the inter
national conference when and If held.
One contemplateS general use Of silver
as basis Of currency in countries now
having the gold standard only. This
type OF proposal is and will be violently
resisted. At the same time it will have
surprising support from some conserya