The Waterbury Democrat., 1931-04-24
NEA Service Writer

Washington - Three senators are going abroad to study the silver sit
 uation and add to a great mass of information and opinion which has been poured out in statements, off, cial reports and erudite articles - none of which has prevented the price of silver from going down be- low 30 cents an ounce.
 In February. at about the time silver was falling below 26 cents after previously declining from 69 cents in 1925 to 46 cents in 1880. the senate adopted the resolution of Senator Key Pittman of Nevada which asked President Hoover to negotiate with foreign governments with view to stopping government sales of silver and to promote an international conference to achieve agreements or understandings with respect to the uses and status of silver as money"
 Conference Not Called
 No conference has been called, but the administration is actively interested in silver, along with statesmen, fiscal experts, economists and business men over the world. Foreign Relations Committee which will now be interviewing foreign leaders consists of Pittman, Swan son of Virginia and Shipstead of Minnesota.
 The important phases of the in- ternational silver depression, which have stirred up general interest m and discussion about the metal for the first time since the famous 1896, involve the prosperity of ln- dia and China and the effect of low silver prices on exports to those countries, the effect on the mining industry in this country and other countries where Americans may or may not have large mining invest ments and the aggregate effect which most experts agree has been an important factor in the world wide business depression of the last year or two.
 Many Countries Affected
 Silver Is not the only depressing factor, but the great amount Of study and discussion devoted to It is attributable to the fact that our own silver producing states are viz tally affected, half dozen import ant countries in Asia and the Amer icas which either hoard or produce silver are involved and many au- thorities seem to believe that some- thing can be done about the white
 metal which will stimulate prosper ity's return.
 This is probably the shortest ar ticle ever written about silver, but some of the main facts may be
 pointed out as follows: The total world loss on silver supplies. with it's accompanying bad psychological effects, will approach two and a half billion dollars, a decrease Of
 more than half within IS months
 That meant about $1,300,000.O00 to the people of India and about $SOO,- OO0, 900 to the Chinese. Our exports to China have decreased rapidly. China operates on a silver stand
 ard, the value of her currency de- pending on silver prices. Indias people, although on a gold basis. hoard silver in vast quantities as form of saving. Mexico, the largest silver producing country, has been hard hit because silver is among her most important exports; here two- year suspension of payments to holders of her external bonds was partly attributable to the silver de- cline.
 The U. s. Treasury lost $100,0O0,- 900 on it's silver reserves.
 Governor Montagu Norman of the Bank of England and Secretary of the Treasury Mellon are said to have discussed silver at their recent meet ing here. but no suggestion or pro- posal has been forthcoming as a result. Both the United States and Great Britain are understood to be willing to enter an international silver conference. but apparently neither country intends to call one. Various proposals for govern ment action here and abroad have not been getting anywhere because they are not convincingly sound or advantageous from the standpoint of those requested to act. Most of them involve some form of price fixing.
 It has been suggested that gov ernments informally agree not to sell silver below stipulated price, that they put more silver into their coins most silver coinage having | been debased - and that the United States absorb much of the over- supply. Senator Pittman has also | proposed a silver loan to China. but neither Chinese nor Americans ap- pear 10 be very interested. Silver Is commodity affected by | the laws of supply and demand and | Undersecretary of the Treasury Oeden Mills pointed out last March