Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-05
SILVER ISSUE SEEN
AT TRADE FARLEY
BimetaIlism and Money Prob.
lem Discussion Is Urged at
Pan-American Conference.
BY G. GOULD LINCOLN.

cial Conference, as a forum for the
discussion of the silver question and
possibly bimetallism, was put forward
In some quarters here today as the
conference opened to run until Octo-
Der IL.
officials of the conference, particu-
iarly those representing the United
| States, declared that there was no
plan, so far as they knew, to bring
the silver question to the fore in the
coming conference. But. at the same
time, they said there was no doubt the
silver issue could be brought before
meetings held in connection with the
conference and before the conference
| itself.
On the agenda of the conference is
a consideration of the topic "Stabili-
cation of Currency" DR.. e. w. Kam-
merer, a recognized authority who has
been employed in the past to revamp
the currency and financial systems of
five of the South American countries,
cusSion. It Is not his purpose, how
ever, to bring before the conference
the subject Of bimetallism.
Many OF Gold Standard.
| South and Central American coun-
tries, generally, have adhered to the
gold standard for many years, though
in recent months Argentina and Brazil
have been of the gold standard COM
pletely. and SO have some of the other
| countries. Several of them have held
longer to the gold standard than others.
but practically all of them have now
declined to sell gold for legal tender,
such as Great Britain has done re-
Gently.
| Mexico really has taken q definite
| stand, however, on the silver question,
adopting what may be termed silver
standard for its currency and credit.
If the silver question Is to be thrown
into the Pan-American Conference this
week 1t Is considered likely that the
Mexican delegates may take a promi-
nent part in the discussion.
But while the Pan-American Con-
| ference may discuss this subject II it
desires. 1t could in no way be consid-
| cred substitute for the international
monetary conference which has been
proposed to President Hoover by Sena-
| Senate Foreign Relations Committee, it
was explained by Senator Borah him
self
The Borah plan looks to an inter-
national conference that would embrace
the nations Of Europe and of the Orient
as well as those of the Western
Hemishere. At such a conference, with
the nations governments officially rep
resented, an agreement might be drawn
up, binding upon all the nations when
ratified, according to the forms pre-
scribed by their fundamental laws,
which would fix ratio for gold and
silver.
| Fear Agreement Break.
| Opponents of the bimetalic system
| in Washington today declared that
there seemed no real possibility of an
international agreement fixing ratio
for gold and silver: that in some coun-
! tries the demand would be to increase
the ratio over the ratio proposed IN
others. And that even if an agreement
were entered into, it probably would
not be lived up to.
The opponents of abandonment of
the gold standard as a permanent
monetary standard and standard Of
credit complained that the adoption
| of bimetalic standard would result in
the use Of silver bullion in huge and
unwieldy quantities. They insisted,
| furthermore, that the present supply of
| monetary gold is ample to meet the
needs of the world for business and as
basis for credit, about $l1 ,000, 600, 900
Of gold in all.
It Is the contention of the supporters
of bimetalism, on the other hand, that
| the supply of gold is woefully short,
| with more than five billions of the
total amount in the United States, an
other two or three billion in France
and only some three billions in gold
for the rest of the world.
The supporters of the gold standard
| say that in view of the contraction of
world trade, it is still more obvious that
the gold supply, which met the needs
| of business and credit when the boom
times were on, is suficient today. Their
contention is that political even more
than economic causes have brought
about the tremendous flow of gold into
| the United States and France, where
| the governments have been considered
stable and investments sound.
Solution Is Urgent.
Senator Key Pittman Of Nevada, who
| has Just returned to Washington from
a visit to China and other Far Eastern
| countries to study the question OF
! trade with China and how it is affected
! by the silver situation and the exchange
value Of silver, said today that some
| thing must be done as soon as possible
| by the nations of the world to stabilize
the exchange value of silver; that steps
must be taken, if possible, to make a
silver dollar in China and silver dol
lar in Mexico, for example, equal in
purchasing power to a silver dollar in
the United States.
He denied that he was interested in
proposals, at this time, for bimetalic
monetary system. Many plans, he said
! have been advanced for the Stabiliza-
ton Of the exchange value of silver
and would have to be considered, but
if the trade of the United States is not
to suffer still more in China and else
where because of the depreciation OF
the exchange value of silver, he insist
ed, something must be done with as
little delay as possible.
Od1cials of the Pan-American COM
mercial conference took the view that
the Latin-American republics. generally
speaking, have not been interested in
the subject of bimetalism, or particu-
larly in the silver question. They make
an exception of Mexico. The opinion
advanced by some of the American
delegates is that the present agitation
for b1metalism in the United States
comes principally from Senator's and
Representatives in Congress who hail
from silver producing States.
Further Suspension Seen.
The interest in the silver question
has been greatly stimulated by the
temporary abandonment of the gold
standard by Great Britain, which was
followed by similar actions by Sweden,
Denmark and Norway. The suspension
of the gold standard by other European
countries has been predicted. 1t is said
that Germany, Italy and Holland may
be compelled to follow suit.
The Pan-American commercial con-
ference, the fourth of its kind, has been
called to stimulate and benefit inter-
American trade and commerce, through
the removal of obstacles. which now