Pathetic Faith in Stabilization: A Remarkable Speech From Ocr Own Washington, May 20. blem has become" one "of prin Almost overnight the silver
political importance in the United States. The Administration annunc-Jed that they were prepared, even anxious, to attend an international silver conference if, some one else would summon it. 'The newspapers were full of learned articles explain-ling "its importance in regard to world economy, and the methods of its production.' 'The numerous Conlgvessmen who find it so dificult. to tear themselves away from Washington and the political limelight destroyed their notes on drought relief, unemployment.and the -inefficiency of President' Hoover, and launched "into. well-intentioned, though not always accurate, accounts lof the silver situ ind) what should be done about "it, The political prophets began to declare that aliver would be one. of the imam issues in the 1932 campaign. the fall in the price of silver during the past two years has directly leftected many powerful interests the United States, The silver producers of Utah, Colorado, and 9 Nevada naturall wish to see'a rise lin price, The Pacific Coast States Hook longingly at the huge undeveloped markets of China and agree that a revalorization of silver upon hich the Chinese currency is based essential if China is 10 become ood customer, ith they bell moderately high ratio of 20 to 1 compared with gold—eivil war and internal friction would cease, The cotton growers of the South who see millions of newly prosperous Chinese clamouring to take the surplus stocks of cotton off their hands are listening avidly ¢o any proposals Imade, The wonder i in fact, not, that lo many people appear t6 be inter: ested in the silver problem now, but thas they did not Become interested lin it long ago. A resolution, itis true, was passed by the Senate re-Jcominending the President to call an International Silver Conference and felt the Indian Government to. stop exporting silver, but it aroused interest. The President turned down Ithe "suggestion, so. those close him insisted, because, if an inter-Inational conference were called- to discuss silver, it would be dificult to. prevent an international conference on gold, and if on gold, then jon international obligations and debt revision.
The change came during the meet. ing: of the International Chamber of Commerce. 'The attack of the visit-jing foreign delegates on American debt and taxift policy was the most sensational feature of the meeting, but a number of speeches were made fon the silver situation. Debts and lantts' were subjects a little. too lielieate "for "American political speakers to take up, but silver had Ino such disadvantage. Tt even provided an opportunity for turning the tables on one of their most severe critics at the International IChamber of Commerce. meeting—Great Britain, "The policy of the indian Government. in. "demonetizling" silver in 1926, was, numerous 1 apeakers were' condi price and for the economic distress which had followed in India and chin membered outside" American Con-dia, it" will prefably be re-
fevessional "circles, first had a fontrolied currency in 1893, "Up to gla the rupee was ona silver basis and Worth about two shillings. [Then the price of silver fell u the rupee Ww Jat the end of the last century iwas maintained at 1s. 4d. latter a phenomenal post-war which the silver in the rupee wa: worth more than the face value o Ithe coin and thousands had gone out) lof circulation before the Government, Jeould force up the face value to lcorvespond with the real value, silver fell ezain, and the rupee with t until previous Is. 4d. In 1926 it was Wi Tess than the lixed on a gold basis at is. 6d.
The action of the British Govérniment in 1926, however, is represent-led s a selfish Letrayal of the Hindian masses by the average JAmerican speaker. It is always referred to as "'demonetization" and is held responsible for the economic depression in India and the fall in the price of silver. The possibility that if trade declines through the combined results of civil disturbance Jand.economie depression the demand for the medium of exchange, namely, silver, will decline sise, and that jift'demana declines while production remains the same, the price must], fall, is not considered. The cart is resolutely placed before the horse; the problem misstated before its solution is attempted, 'A Chinese spokesman at the {International Chamber of Commerce, IMr. Tsu Yee-pei, President of the Bank of China," ¢urned down the suggestions of the Kemmerer Commission of 1928.29 that the situation Jgradual introduction of a required "a project of law for the standard system into China." Tow, Ihe asked, could China find the gold for a reserve, how dispose of the ldemonetized silver? It would be to the interests not only of China, but lof the whole world, 1 were called to. discus the revalorization and. stabilization lof silver, he maintained. A rosel tion to this effect was Inter though the British prot stabilization of silver would prove impossible and that the conference} rousing false hopes for a time might precipitate an even greater disaster than that which it was called to prevent.
'Senator Borah, of Idaho, Chairman lof the Senate ' Foreign' Relations ICommittee, came out strongly for ithe silver' stabilizers. "The efforts to place India on a gold basis had impoverished millions, he asserted. [The depreciation of 3 bed Asia of her pure A thousand million poor means to purchase goods America is eager to sell. The artificial collapse. of, silver has brought real collapse of the Asiatic {for goods." These nations of the Senator argued, must, conti to conduct business on a silver basis because there is not enough gold in the world to go round, "The silver problem" he continued" is one which requires governmental action. Jeannot be solved or settled by resolutions or individual action, "Tt is somewhat. dificult to understand the delay. This depression seems not only. to have reduced the purchasing power of men, but, to have red their initiative and leadership The governments who by. the lection had reduced the price of ver had "conceived and put into execution the most brutal and cruel system for impoverishment for the] spread of hunger and want and disease that it is possible to con-lee ive of outside of war itself."
Discussions of silver, international Jdcbts, reparations, and tariffs caused 'a remarkable speech by Mr. Melvin LA. Traylor, President of the First INational Bank of Chicago, to resolve less attention than it should have received. Mr. Traylor not only accused American business and financial leaders of responsibility for the present depression, "but of being fully aware that their policy woul lead to an economic crisis of appel ing magnitude. "Wo have not failed" he said "because of ignorance Jot economic theories, but because of lour utter disregard and Jail economic laws. Ambition, stupid. y, and greed have dictated policies."
Mr. Traylors speech was especially significant in view of the fact that 'a. Democratic Presidential possi Should there be deadlock among the men whose Inames are now to the front some dark horse" like Mr. Traylor might, Mr. 'Traylor described the events leading up to what ho terms the tragedy" of 1990-31 in the following ter "When we emerged from the war and the first readjustment period of 1920.21, we had an industrial plant} Jeapable' of supplying the satisfiable wants of our citizens based on the current income which was exceedingly high in relation to former periods. Improvements in machinery and management enabled a. raj expansion of productive facilities take place. Large forei Toans vastly expanded our export trade. Consumer credit, augmented domes-tie purchases. Selling ceased to" be an art and taking orders was an accommodation to the customer. Business leadership should have noted the storm that, was gathering and trimmed sail accordingly, but ambition for place, power, and profits Ulinded leadership to the obvious dangers ahead, and prevented the preparation of a safe harbour, against the hour of storm."
As @ consequence, Mr, Traylor pointed out, there are millions dollars invested which are idle and show little chance of "earning their keep." For example, the capacity for the production of motor cars in
Text read from the printed page and cleaned; old type leaves the occasional error.