The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-04-12
BY HERBERT LITTLE
Times Special Writer


the Egyptians to be more valuable
than gold is being Stunned for use
as money by the rest Of the world.
The apparent reason is that the
Americas, particularly United States
capital, control virtually all the
silver.
Silver is not of major importance
as a commodity; it involves far less
than l per cent of American COM
modify sales. 1t has long been used
Is money and as money base; it
is still almost universally used for
small coins.
So, keeping in mind that United
States owners in 1882 produced IS
per cent Of the worlds production
and also that since Columbus dis
covered America the new world has
produced "a per cent of the worlds
total production of nearly 100000
tons of silver, some foreign money
developments may indicate the
plight of this precious" metal.
From 1919 to 1882, inclusive, SAL
100000 ounces of silver melted
down from coins have been sold,
about 155 100000 of this resulting
from midas adoption of gold
standard in place of silver.
Silver as Currency Unpopular
Use Of silver as currency has been
discontinued since 1914 in Belgium,
Finland, Denmark, Norway, Turkey
and, until year ago, France.
In the last five years, this trend
has resulted in coins being turned
back into silver, completely destroy
ing this market.
The percentage of silver held as a
metallic base for money by the CEN
trail banks Of eighteen major foreign
countries has fallen from "a per
cent Of the total money base in
l900-1904 to only per cent. This
change largely occurred during the
World war
The price Of silver mounted under
the war demand for about go cents
an ounce in 1913 to Ill in 1919, but
it fell to 81 cents within two years
and when British India went on the
gold standard in 1927 and the de-
preston arrived in 1929, it fell from
So cents to % cents. On Dec. %,
1882, it fell to an all-time low of
2412 cents, but it had mounted to
40 cents by last September. The
governments purchase of all newly
mined silver at 641z cents brought
the market price up to about 46
cents.
Currency Imitation Demanded
Into this situation comes the de-
mand for the initiation of the cur
rency. In the face of the fact that
nine tenthS of American business is
done with checks and other bank
money, inflationists joined with the
silver advocates in demanding the
issuance of more money, based, &C
cording to one plan, on treasury
boards of silver.
Psychology in the entire west
identifies prosperity with more hard
money. In cold figures, only Utah
and Idaho produce enough silver to
make its mining a major industry.
But in Arizona, Montana and other
states, by-product mining of silver
from ores which also contain cop
per, lead, zinc, etc, often means the
difference between profitable and
Improbable operations.
So the eleven western mining
States whooped it up with the farm
Representatives of the midwest. They
forced into the 1882 agricultural adj
juStment act the Thomas imitation
amendment. This did important
things to gold, but it also author
ICED the President to set up a dis
tinct bimetallic currency basis at
a ratio he would fix. 1t was merely
permisSive, however, and Mr.. Roose-
Velt took no action. He froze the
gold instead, and sought to bring
prosperity by adjusting farm and
factory production and credit.
Nations Agree on Program
Mr.. Roosevelt went seriously into
the silver problem in an interna-
tional conference growing out Of
the world economic conference in
London last summer. Three large
silver-holding countries, China, In
dia and Spain, and five producers,
Mexico. United States, Canada,
Peru and Australia. signed an agree
nent, ratified by all except Spain
and Peru, which have declared then
Intention of ratifying.
AS is usual when one bargainer
stands to gain the most, the United
States took the heavy end of the
load, agreeing to purchase 24,421 40
ounces, which is approximately its
entire production based on 1882
mining. All five producing coun-
tries agreed to refrain from selling
newly-mined silver abroad, and
Spain and India agreed to limit
their sales of melted coin silver to
& specific figure, 16O.0O0.000 ounces
over a four-year period.
China, which imports silver. but
never exports it. agreed not to ex-
port. midas selling quota Of S5,-
100000 ounces a year incidentally
is more than she has been able to
sell in recent years.
Political Storm Develops
President Roosevelt put the sill
yer buying program into operation
In December, but relatively little
silver has been sold to the govern
ment. Now a political storm has
blown across the sky, threatening
congressional action on two major
points;
/. To force the United States to
buy into the worlds above-the-
ground supply of silver. estimated
at twelve billion ounces (siX million
tons) to improve the silver market.
and
?. To make silver a base for a
large issue of new money. from one
to two billions of dollars, the chief
aim being to increase the price
level through currency imitation.