The Waterbury Democrat., 1931-10-23
UNMOVED BY
 SILVER TALK
Bi=Metallic Standard Agi- tatiOn Gets Little
 EncOuragement
By THOMAS l.. STOKES

Washington.-(UP ana silver agitation, aroused to-day to pitch not seen in this country since William Jennings Bryan's 1896 free silver" campaign. finds the Hoover administration un- moved by various proposals crys- tallizing from it.
 The administration takes no stock in suggestions emanating from a few western senators for a return to the bi-metallic standard. which this country definitely re- jected in 1900. The United tates must remain on the gold standard, Is the administration answer to the appeals for a change which have followed Great Britain's temporary suspension of the standard.
 Neither does the administration offer any encouragement to the promotion from abroad of an tn- ternational conference to consider the unequal distributin of gold which has given the United States around $5,000,000,000 of the pre- cious metal and France $2,370,000,- 900, about 62 per cent of the entire world monetary stock.
 Basis of Currency
 Gold has become the accepted basis of currency, with a few ex- captions, the world over. Its value has been fixed at $20.67 an ounce in the United States, and anybody can take this amount to the mint and get $20.67 for 1t, and he can exchange government notes for the eual weight of gold.
 Any country on the gold stand ard must maintain sufficient re- serves to meet expected demands for gold. Some countries dx q def finite ratio between gold reserve and notes and currency by law, as does the United States. Great Brit ain did not have a fixed ratio, though it's policy was to keep a gold reserve of $750, 100000. When, as in the case of England, reserves drop too low, that country leaves the gold standard. either tempo rarily or for longer, unless 1t can build up its reserves by emergen- cy measures.
 That leaves that country with out a definite standard of value and causes confusion as to the value of currency. What usually happens is that the value of cur rency fiuctuates to a lower level and then is begged" by the gov ernment at the lower value. That's what is expected to happen In Great Britain.
 Tremendous Results
 The result of such a course in a | country with the financial interests of Great Britain are tremendous and ramify all over the world. Il means, for one thing, that those who are owed by Great Britain lose the difference between the original value of the pound sterl- ing, $4.87) and the present value This does not apply to war debts to the United States which were settled on their dollar value. II means that the national debt if automatically reduced. It means that England can sell cheaper tn markets of the world, and thai other countries have to take loss in selling in her home market.
 Great Britain's action has stirred up representative in congress from silver-producing states to re- vive the bi-metallic standard. Re- 6lOId VI 6AtNC1 oS v SaN&Sss~, base would enhance it's present greatly depressed price. The ar. gument of those favoring the dou.
 ble standard is that there is mol sufficient gold in the world and that the base should be broadened by the introduction of silver.
 Administration economists refute
 this theory by saying there t enough gold, and will be enough for 20 or. 30 years. They point to lthe greater efficiency in the use oi gold, explaining that 1t has been supplanted as actual currency by
 notes and bills. Restoration of the
 bi-metallic standard. they argue
 would only introduce another con- fusing factor in a situation con fused enough already.
 II Concentration of gold in the
 United States in the last 16 yeart
 has made this country the banker of the world. and this. economists agree, entails new responsibilities
 which some critics say the United
 States has not met.
 Tracing the history of the con. centration of gold in the United
 States. economists go back to the war when this country developed a favorable balance of international payments which has continued in y,n aaf vaara sinca