, 1935-04-19
The w rld
AT Glance
BY LESLIE EICHEL
Central Press Staff WRITER

NEW YORK. April 10. - Increase
by the government in the price Of
newly minted silver from 64.64 cents
to I'LL cents a fine ounce is not
looked upon by New York as lnfla-
tionary-but deflationary, in the
long run.
In financial circles there Is no op-
timism vel the silver policy.
The psychology that higher COM
modify prices bring prosperity to the
most fundamental business. farming,
and thus begin a circle Of prosperity
and higher prices is not shared In
financial New York.
The view here is to the contrary.
Higher prices for commodities are
seen as leading to further restriction
of trade. OF a tighter squeeze on the
salaried man. Of serious unrest
among wage earners and general
business unsettlement.
There may be a furry In specu-
lative prices. which may give a SEM
blance OF prosperity" but that
merely may add 10 the deflationary
tendencies Of actual business. finan-
cial New York believes.
Trade. actual trade movement Of
American crops to other nations In
exchange for goods. is looked upon
here as the only way out.
That is objected TO in many quar-
tiers In the interior and BY some
manufacturers as likely TO permit
a flood OF cheap goods" But finan-
cial New York points out that trade
is likely TO raise prices. not lower
them. II is the lack of trade. the
lack Of purchasing power and the
cheapening OF currency. that have
caused prices TO drop.
Goods produced with Debated cur-
rency Of any country is cheap goods
in any other country where currency
Is not so badly Debated.
The constant debaSing OF cur
rency Is having a more serious ef-
feet on wages and purchasing power
than any possible influx OF foreign
goods. After all. when a nation
sells 10 another nation. Il usually
purchases something IN return
something that the other nation de-
sires to sell-and those constant in
terpurchaSes raise prices more
thoroughly than any currency de-
flation.
How Wall Street feels over the
lacking I'D Of the silver price *
explained BY Carlton A. Shively.
financial editor Of the New York
Sun. In these words. written a day
prior to the lacking up Of the silver
price: President Roosevelt in a
press interview rather ~cleverly indi-
Gated how the government has done
something for silver and intends
no doubt to do a good deal more.
He said in effect that II the world
price for silver went above the 64ia
cents which the treasury paid for
domestic production. then II was
likely the treasury would lift its
price. ut did-to I'LL cents.1 The
thing works out quite simply. The
treasury goes into all the silver mar
ketS and buys all the silver It can
lay hands on-in China. India. at
housekeeping only when barred
by embargoes on shipments but dis
regarding appeals based on econom-
ic and humane reasons"
Ball Rolls MeriIy On"
Mr.. Shively continues: Natural
~ China and some other countries.
seeing that the United States Is de-
nuding them Of silver and choking
them by putting up the price OF their
money. try to save what Is left Of
their silver. with the result that. be-
coming scarcer. the price goes up
and UP.
Then the treasury points to the
high world price and SAYS it Is I'M
fair TO the American producer. II
lifts its price paid TO the home silver
mi-e owners. and the ball rolls mer-
rily on.
The silver Is useless In the treas
ury. the money paid for Ii Is a gift
from the taxpayers 70 the silver
mine owners. nothing more nor less.
and our world trade is considerably
damaged by disrupting the economic
life of the silver money countries.
notably China.
Unemployment here remains as
large as ever