THE BOOM IN SILVER

Dominion, Volume 13, Issue 22, 21 October 1919, Page 10

THE BOOM IN SILVER

AN AWKWAiffI SHORTAGE,

Silver ia now giving tho world trouble, and it is trouble not easy to overcome (observes the Sydnoy "Daily Telegraph"). It has risen to ss. 3Jd. per ounce standard, and at ss. Gd. its value in our coinage will becomo equivalent to that of the £1 note. That means that wo coin 1745J grains of standard silver into 20 shillings, and that quantity of silver will be worth 20 shillings'in the market. A further rise of 2id. an ounoe will therefor® destroy all prolit upon silver coinage. 1 But that raises another quei* tion. Silver has already risen flfteef. ptnee an ounce this year, and much more sinco tho war started, and it is I quito possible that it may continue rising until it Is well above ss. Cd. an ounce. In that case not only would there be a loss upon coining silver, but the silver win 3 in our i/ossession would be worth more than their face value, and there would be a profit upon melting them and exporting thorn. The British Government has already printed ss. notes to partially tako the place of silver, but is not aufliciont. Flonnn, shillings and sixpenny pieces are much more in use, and certainly full-weighs coins would to a large extent, disappear froir» circulation. Tile alternative in that case would Im> to reduce their weight. It may bo argued tlmt to some extent til© riso in silver is fictitious, and that measured in gold, instead of paper, if, is not quite so high. That may be true, but so long as we exchange 20 shilling!" for a£l not© wo ignore it. India has given np the old proportion of 15 rnpec-s being equal to .El, and is now exchanging 10 ranees for the £1. We could hardly follow that lead, and it is sincerely to be hoped that the problem will bo solved for us by a reaction in tii> silver market. Tho trouble is thnt India and China are clamouring for the white metal, and Americans are the principal producers, and America is out for profiteering. Between the two of turm wo are faced with much possible trouble.