by Ins, Tsover Pet, Maxscem of THE BANK oF Cit (Phe following memorandum in reply to @ cirewlar inquiry sent Weights and Measures of the has been submitted by Mr. Pei out by the Committee on Coinage, House of Representatives)+ enquired: Who assassinated silver? Who cornered gold'
'The answer e: Ties. not in the fall of commodity prices nor in the Imagined scarcity Of gold. It is really. to be found in the' persistent withdrawal of silver from its perennial partnership with gold in the financial structure of the world, and in the inherent. selfishness and avarice of that ruling class of mankind, possessing much wealth covet greater value therefore than fustly due, finding in gold monometallism 'a ready means to an end.
Alter the strain of three years of depression it is by no means set-back to the silver market, While European desertions silver, though equally disastrous in their own times, extending from 1873, when Germany adopted the gold' standard and thereby broke up the Latin Union, to the present time, the actions of the second precipitated a major collapse the Plutonic effect of which remains unmitigated. There is this differlence, however, between the two: feauses: It was undoubtedly a great blunder in recommending India to dispose gf her surplus silver inspire of grave warnings. Sales of silver in panic-creating. proportions by the Indo-China. were should be sought of bringing about the stabilisation of silver and so of restoring to China her full purchasing power. Only by i ynal agreement can this secure such agreement'
The unfailing silver psychology is still as existent to-day as in the regressive days of hi-metallism. Failure of paper currency invariably raises clamour for silver jooms. Nor are such demands unjustified. When the marks declined fatter the War to a value less than the cost of the paper they were 1. Any lasting improvement in ithe' silver situation can be secured jonly. by international ce-operation, which must necessarily include substantial measure of agreement: between producers and the holders: lof large stocks of silver.
If any attempt is to be made secure. such international co-Joperation there must at the outset Ibe a clear understanding and agreement as to. the objective. The stabilisation of silver is different in its implications from the rehabilitetion of silver, and the measure of international "ce-operation obtain lable for the purpose of stabilisation might. prove to be much greater Gimeult to see that mono-metallism, its false promises, stands revealed as the most, conemptible form of sponsored deceit. "Por we have seen the value of gold increase at such vote that commodity. prices have been unable to go down fast enough. And men, of profession thrown out of employ-mont by millions and their families and dependents forming bread lines and exposed to. the unmerciful Glements. It is evident that national leaders and the duly constituted governments must soon institute orions inquiry into the fiscal, sys-ems that permit treasury officials and. civil. servants to imperil and actually to destroy world security and happiness at will, by the iMogieal power in their possession to influence legislation upon the ever-vital matters of currency.
We have witnessed a great deal of official and semi-official pre-Judices inflexibly manifested everywhere towards the sane proposal to turn to silver remonetisation yet these same quarters conspicuous by their lity to at lerist stem the tide of this fearful depression. We will not be too far wrong to think that they would welcome a con-this tyrannic reign of standard, and if needs Their ress statements are the face of this colossal depression and in the end-Tess lines of gaunt misery and stark want among the twenty millions unemployed.
Silver is the only remedy. Its re-employment in the currencies of the world in partnership with gold would restore stability and recreate employment. The comparative and Virtual quiescence economically of the silver countries and the fact that the world has never been in a worse dilemma are assurances of this fact, Every known remedy has. been tried but, silver remonetisation. Economy from the closing down of schools to the unheard of billion dollar relief corporations have been attempted to reflush the credit of the banks but with signal failure. At best they are further burdens on the public and are bound to react adversely upon future budgets, Commodity and stock prices are lower than ever and staggering under the weights of destructive taxations. The s0- alled "remedies" have been just sxpenaive'pallitives ax they "are now proved if we are to have a return of prosperity the foundation of the world's credit system must be permanently made upon both silver and gold. It is the value of silver that is of vital importance and its inevitable reaction in the prices of the basic metals such as_copper, lead, zinc, tin and ete, Remonetisation of silver does not constitute hi-metallism, but its realisation is greatly to be desired. We have to retrace our steps. Tt should be easy when so much hangs in the Balance, but no, prejudice admixed with ignorance' is responsible for this. drifting policy heading for. perhaps, oblivion.
Strange us it may seem, the only commodity"" that is actually suf fering a shortage today is silver But if it shows no sign of sustained recovery it is attributable solely tothe destruction of con-Adence. Two main causes contributed to its disastrous decline:
1. The general post-war debasement. of silver coins of the European countries and the abandonment of the use of silver following the universal determination to adopt the gold standard, and 2. The perpetual threat of thay huge Stock of demonetised rupees and piastres and the, heavy ales indulged in by the T¢ Indian, Indo-China, ese and other governments. directly influenced by the Hilton 1) ited on many. families,, other wise destitute agd in dire threat than if the primary object were to Young' Commission's recommend: raise the price of silver, Indeed, if tions. the accidental possession of a few starvation, were saved throseh it were thought that the level "Those who differ with this hoarded silver coins. That the which it was sought to raise silver Chile, which adopted gold mono-silver age is coming we have only prices was unjustifiably high, those Jopinion "have but to recall that remember the wild scamper Interests which are in favour of Jmetallism on the recommendation recently to desert from the gold lof Dr. Edwin Kammerer just prior practical stability © might actually standard like devils flying from Joppose such schemes of rebabilitato his similar gilded mission Holy Water to be convinced. Gold lon. As regards China, for instance, China, wont off it during the week thas failed, so it must be silver and [what is most needed is a relatively under' tragic circumstances. The gold. The only ray of hope lies in Istable price for silver, since undue incredible evidence before us is that the evident open-mindedness of the fAvetoations have most harmful Inow the Chilean public is, storming effects on our foreign trade and on Dominions towards silver, without the banks demanding silver. No Jour financial market conditions. which and from the unrelenting ess an. authority than the Right '3.. During recent years the world attitude of selfish indifference de-Hon. Montague Norman and Sir has seen a nuraber of attempts to monstrated by the leading nations, [Charles Addis, in a joint statement maintain artificial prices for we might truly say that civilisation Hbefore the Royal Commission on variety of commodities which have was tottering and Christendom Indian Currency and Finance in jo. world market. The results breaking up.
1926, "stated in opposition to the these experiments have on the whole been discouraging. Silver must, be sales' that regarded not only as a commodity where is a reaction upon
Text read from the printed page and cleaned; old type leaves the occasional error.