Debasement and Abolition of Silver Coinage: Possibility of its Ultimate Destruction Reporting from London on February 21, Messrs. Samuel Montagu & Ca. state:—Owing to the China New Year holidays and easier exchange rates from India, the market has been flaccid. Prices have been fairly well sustained by bear covering. Business has been unusually small, otherwise rates would have been difficult to maintain. The improvement in sterling exchange with the United States drew out some business yesterday, but on the whole America has not been a good seller.
A published letter of the Vice-President of the American Smelting & Refining Ca. to Senator Pittman (in connexion with a resolution as to the appointment of a Silver Commission in the United States of Amierica) seems to indicate that no illusions are entertained in well-informed quarters in the States as to the outlook of silver. We append an extract "In my humble opinion, the greatest danger to silver in the future lies not in the termination of the' Pittman Act, serious though that may be. The end ct the Pittman Act, after all, means only a return to the conditions existing before the United States entered the war. The paramount danger to silver hes in the continuation of the recent steady, remorseless increase of the dis. continuance of its use as money. The last few years have soon the debasement of the silver coinage in Great Britain, in the Scandinavian countries, in Central American and in South American countries, and its entire abolition in all countries in Europe which were engaged in the war. If, for the next ten years, the tendency of menkind to abolish the use of silver for monetary purposes equals the movement in that direction for the last ten years. one may readily envisage the ultimate destruction of that intrinsic value in silver which has been placed upon it by the consensus of opinion of neankind since the dawn of history."
REQUISITES FOR STABILIZATION, The stabilization of the European exchanges cannot be achieved (as has been suggested in the United States) by extending the use of silver for coinage. The requisites for stability are cessation of intation, and a favourable trade balance; a sufficiency of gold reserves, that can be used to check any temporary exchange weakness, would be a desirable addition. Europe is not likely to, emulate the Far East, where, owing to a preponderance of exports, silver is absorbed heavily year by year for trade and currency. She requires a material for currency which can re-exported at will, and yet retain its currency value. On these terms, the United States would not be willing to re-purchase silver from her in settlement of trade balances. Hence, the probability is that Europe ultimately will acquire some of the gold with which the United States is. even more bounteously supplied than with silver, though United States mining interests naturally would pre-
Text read from the printed page and cleaned; old type leaves the occasional error.