Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-04
JOhn Bull Looks at Silver

, folios of the admiralty and the colo
MES, has Jumped into the silver move
ment and is strenuously advocating ac-
ton. AS he will hold once in either
the next Tory government or q recon-
stituted national ministry If Macdonald
goes to the country with a petriotic
tude is important. silver rehebilita-
ton. for the imp :rialist Amcry, is a
practical means Of lifting India cut Of
She rut Of depression and digging a
lot of ground from under Gandhi's ap-
peal for the 300,0o0,00o for whom he
claims to speak.
The Chinese situation is neither SO
complex nor so entsngled in politics.
China has a silver standard for her
currency and requires silver in payment
for goods she supplies. In ordinary
circumstances a fall in silver prices
would stimulate exports from China, and
larger demand for silver from that
quarter would ersue, ofisetting to some
extent the augmented supplies avail
able in the world market and notching
up the price.
Chinese Production Low.
But what with the great flood Of
lntermInable wars, production in China
is at a low ebb, and the Western pow
ers are chiefly concerned with restoring
to some extent the buying power Of that
mighty market Of 10000, 000-a grow
ing market particularly for tobacco, oil
and finished goods of all sortS-by rails"
ing the value Of silver IN relation to
gold. Those industries which depend
upon China for their outlet are being
knocked out merely by the failure TO
solve this silver problem.
Lord Inchcape. an octcgenarian. who
owns Pacific, Orient and other great
shipping l.nes-a Scotsman who went
to Intia at % end wss a millionaire
at 40 and kl.oTs ell there i; to know
a':out Eastern t"adc-has jTSt tlrown
himself into the rehabilitation Of the sill
yer tight. Just as the American tin plate
interests would be willing to boost the
/ consumption OF timed goods every
where in the world. because the bulk of
the tin plate business goes to them
anyway. so Lord Inchcspe wants silver
rehabilitated because 1t would mean
more to Britain in her present Situa-
/ ton than it can possibly mean to any
other state, although America would
| also gain by It, This Is how he states
the case:
For Great Britain it Is essential that
every avenue be explored which may
! lead in the direction Of such economic
! independence as we may attain. Com
! p,ete economic independence is, as all
admit, beyond our reach; but as re-
suit Of such a series Of inquiries, pro-
! duct on in our home market should be
immensely increased and the total of
! our imports much reduced. The value
| Of silver in 1914 was about so cents an
ounce today it is just about half Of
that. This is killing China, which has
a silver currency, and is very material
! " and injuriously affecting the export
trade from Europe and America. II
some arrangement could be devised. as
I believe is possible, to raise the value
! of silver relative to gold. the trade
with the Far East would vastly i'm
prove"
Silver Importance Stressed.
So much for the group which wants
to salvage silver, restore the buying
power of the East and stimulate world
trade in general and the British export
trade in particular through those chan
nels. Whole-hoggers are now tending
to elbow these moderates aside in an
endeavor to show how all the birds can
be killed with one silver stone. Silver
to them is an enchanted bridge where
! by Britain can escape from the prison
of gold. Adopt bimetallism, they say
Remonetize silver and so broaden the
basis Of credit and increase the demand
for and value Of silver at the same
time.
Controllers of the currency policy
have been crouching In their pillboxes
ever since this bimetalliSm barrage
started. So far they have refused to
be drawn into answering the FIRE.
They know Britain is in jam, but
hope to be able to get out Of 1t with
out adopting bimetalltsm. I have heard
1t said that the only statesman Eng
land has had in half a century who
thoroughly grasped bipaetallism in all
its implications was Earl Balfour-and
| he is dead.
| Just what dangers and risks it holds,
every American who went through the
renowned btmetallist controversy in
the latter part of the last, century
knows. In private you would find
! men in responsible or ofncial posi-
| tions explaining their reticence on
this question and deprecating public
hoped France and America, holding
three-quarters Of the world gold stocks,
would recognize In time the common
! danger to our civilization In the threat
ened breakdown Of the monetary ma
chine and would listen to of1icial Brit
ish suggestions of an international con-
ference to consider ways and means Of
escaping from the gold impasse.
Gold Hoarders Cautious.
But as Chancellor snowden revealed
on that historic Monday when Britain
avoke to find herself Embossed from
! gold, Britain had been informed that
move to initiate any such discussion
would be most unwelcome. The DOW
erS with respectively IS, ooo, 900 900 and
| $4,000 100000 Of the yellow metal
frozen in their vaults did not care to
take any steps liable TO lead to the
devaluation Of their vast boards and
liable to weaken the power that gold
confers upon those who possess it in
a world harnessed to it and based
upon 1t.
Circumstances now are dramatically
changed. Britain's ofacial hopes have
been dashed as decisively as all her
hopes since Montagu Norman Of the
Bank Of England and Benjamin Strong
Of the Federal Reserve co-operated TO
get the world back to gold in 1925.
Britain ofncially now looks for q
| return to the gold standard. She sees
disadvantages In other states going OF
the gold standard. But IN the absence
Of any action on the part of the chief
powers TO confer on great monetary
changes long overdue . movement TO
seek relief in bimetallism In corjunc.
ton with all states willing 10 come In
may become irresistible.
Export Growth Necessary.
Her position strengthens the hand
OF bi-metallist propagandists. In the
vaults OF the central bank lies only
$3.50 100000 worth Of gold. The bsi.
ance Of trade Is such that despite a
per cent bank rate she cannot ex-
pect largely to increase that gold stock
for some time. In order to strengthen
her position. England must swiftly in
crease her export trade. Tariffs ham
per her chances to increase sales to