The Waterbury Democrat., 1932-05-17
CROSBY WATER PAGEANT FRIDAY NIGHT
GOLD AS MASTER
 OF SILVER HAS
 WORLD WORRIED
Silver Has Fallen So Low That It Has Become a Real Tragedy in Econo. my of All Nations
By JOSEPH IT. BAIRD ynfieG Press Stan COFreanOndent

(Unticd Press stan C0rrcspondentl
 Washington, May 17--(UP)-' Mankind's standards for measurine It's goods and toll have gone awry causing trade stagnation and pov' erty, and now the best economic thought of tho world is coneen. trated on tho problem.
 Gold, once the servant of silver has become its muster. The price of the white metal has dropped sc low that moro than half the world --mainly tho or!ent--has suffered Q tremendous loss in buying power
 Tn America, the days when the "cartwheer 'traveled daily from pocket to pocket have long since gone. But in many parts of tho w6rld-China, India, Mexico, fol instance---silver Is still tho ruling token of value. Hence its rapid fall from si.15 per ounce In te1s to less than 2s cents in 1881 has wrought havoc in world trade closed mines and caused suffering and want.
 This tragedy has not boon con. lined to sllver.using countries such as Mexico, Indian and China. West orn powers have suffered through loss of markets at q time when their storehouses were piled high iwth goods unwanted at homo.
 This situation has caused coon. omists and officials to- reexamine the fundamental bases of silver and gold as measuring rods. They are seeking a way to stabilize these measures, to mako them less res sponsivo to every caprice that af- fects other commodities.
 In prehistoric times, 1t is said, ono ounco of silver was worth ten ounces of gold, but in modern ages the yellow motal has always been tho peer of tho white.
 There have been, however, dras- tic fluctuations In their relative value during tho last century. In 1885 silver was worth $1.30 per ounce, Then with tho winning of tho west and m increasing demand for silver IS tho "pockot money" of men from Kansas to California, 1t rose oven higher to si.95 in 1885. From that point it fell con- stantiy until in 1916, two years after the World war began, 1t was worth only 5i cents. But wartime Europo's vast trade with tho Orient gradually created a new demand for the white motal and it scared again, reaching $1.t5 in 1919.
 Then 1t fell precipitately to tho lowest point of the last contury-- 27 7.s cents In July, to3i. Since then 1t has recovered by only . few cents.
 What should silver bo worth in terms of gold? Tho question has baffiod economists for decades. If the two mcatls followed tho gcn- eral law of demand and supply thcir rolntivo worth would seem to depend on thelr comparative scar city.
 Taking tho approximate 50 year period, 1881 to 1880, tho world production of gold was 14,b34,S40 ounces and of silver t7B,31l,000 'ouncos. This would indicate nor. maj ratio of i2 tk 1 between the two. Yet such q ratio has boen far from constant.
 Just now officials can 500 no i'm. mediate prospect of silver bcing rest ored to It's usual buying power as a result of natural economic forces. Because of this, there is . growing demand both hero and in Europe for international action to raise tho prico of silver by artificial means and thus restore the buying power of moro than 1,000,000,000 people not on the gold standard.