Salt Lake Herald-Republican | 1919-03-09 | Page 27 | [Illegible] Silver Shortage is Felt in Orient, and U.S. is Expected to Supply Demand

E SILV SILVER R SHORTAGE IS 15 I T IN ORIENT AND U. U S. S iS S EXPECTED TO SUPPLY Y DEMAND front from China th the United States State ells tells of ot the thc great shortage of or orin lin in that vast country and sug- sug the United States must fill hat hat st Mr lr Anderson Ia says shortage Shortage of ot silver Is ad adversely ad I trade situation rig time general 1 china but Its effects alto altor I r In some p portions I I. I on serla us i 1 than in others In the country lr districts of north and central I f I comparatively od crops and financial con conditions have o made madel and for or the tho metal Increasingly l n l land y yr I south China particularly r- r rIn In tracts subsidiary to and nd Is III felt much less commer- commer despite the tho fact tact that the ex- ex exi extrom for or j i fiver from konS' konS except account account en even for the theIon klou Ion lomi of ot bank hanl notes notes- the 1110 kong bank bank- 1 sues Ut uel arc alwa always S 'S y t f lly protected J tho ho hoking colo and 1 by the U l's l vs s of oC t colony policy of or tho the Institutions king them s during the past Rt year car Hong Hong- r k notes have c circulated at a at at att tt t t because the they could be he rein rc- rc only in silver in jn n no no silver could be exported s when native e bank notes were represented silver obtain obtain- they demand at least t th theoretically I i ith th tho the uncertainty of or finances la a a this condition con con- con con- I a short time only Owing OWing- V increasing discount of ot Canton liver could only be had In small I considerable ap- ap Ms ts is causing c a lion tion tion In the value alue of oC subsidiary and transactions S In Int n t and export lines could be upon d-upon safely aCely only In Ill otes notes in some districts in south the need ot or silver has been the cute for for example in the KotIn Kot- Kot ln In mines wh where re silver for Cot theat the nt at of expenses could only be beom opt bm om Shanghai at al times and antI th then t. t the payment of oC a. a considerable I t i m ml iio c districts near the tho Indo I Idue th there rc has been continued due Edue largely to tho the draIn draInon r ln on onka ks ka of or sliver sli in those districts g benefit of oC Indo In Int ft t I Inter rio trade in the ther tray r h has hac K greatly ll retarded b by L I and nd this has borne pars par par- par par-I s heavily lly upon districts where necessary e to have hae silver RU at nt any T The Tre e rc uil t has been an an Inflated t e if t the and ll north China compared with wll II dol- dol ol- ol In fa favor or 01 of Shanghai I if f v the tho time running about l lit t t while the actual difference in Luc lue o of the respect respective C dollars Is i 10 po of 1 per cn cant t. t of l MUrr SlIn-r Shortage c nt fit respective stocks sok of silver sH In Inand j aL iJ and north and central China u ulo 10 hand and in torton tor- tor ton on an the tho other are aro rather Both oth parts of or tho the country countr arc Jre I i I I short of oC the white metal but with varying results Shanghai stocks ot or I I silver sliver are aro placed b by good g authority at about Instead of ot 30 0 Lads which Is usually c considered consid consid- ered ared necessary for Cor the trado trade of or tho the Port About is soon to arrive c but shipments of ot silver to toI Shanghai which now practically depends de do- upon tho the United States for or tho the thoI supply have o been so St restricted that tho the usual drain Into tho the Interior has left lert tho the port almost without resource Much uch of ot this embarrassment has bern been due to the fact that Chinese speculators specula specula- peculators tors have o bought old hold at at- high silver exchange and in spite of ot export re restrictions re- re the ordinary supply of or silver has gone one out to cover the gold ex exchanges ex- ex changes purchased Shanghai ordinarily requires much more silver than Ild south Chinn In proportion to actual business transacted because of ot tho the large largo number num num- number ber br of or banks banlos which Issue notes or 01 otherwise require specie reserves reser In short the demand for or allver in to Shan Shanghai Shang Shang- hat hal and Its territory is pressing Considerable amounts of or silver have havo been going Into tho the interior In Interior In- In where the they arc are moro more or less permanently i Tho The close of the current calendar ar and Chinese year ear will be an anxious time as a L r. r rosult Sult of or the of or Jol gold In the tho small stocks of or specie At all events o the situation in central and north China is such uch that trade trado is greatly hampered by bya a lack of oC money and antI of ot course a lack of of- full tull and proper cle credit ll system based upon mone money I Improvement J In lit lIon on The The sll silver cr shortage in ong Is similar to that in Shanghai In ht some re respects respects re- re but bul because of t the sound bankIng banking bank- bank Ing system established under Jlong- Jlong kong U o effects ts arc are dif dlf- ferent erent ong probably has 15 16 1 less silver at the thc present time than at the be beginning of ot tho the current year ear dos dos the tho prohibition of exports Of at this difference about Is the cst estimated amount o of sliver silver smuggled smug smug- j gle led out of ot tho the colon colony j Some sized fair-sized shipments of or silver i have c been Men received b by banks recently and about ounces arc aro inow j i now on their wa way It Is generally an- an ani i j therefore that whatever change thans ma may bo In the I and ind s south uth China situation will be for tor I Ithe the better although at the tho pr present timo it is not unsatisfactory in view of general gen gen- en- en I eral iral silver 01 and financial conditions all I over 01 vor th thc world orld The exchange e rate of or i m the he Collar at the present i I time Is considerably below that of the Shanghai or north China d dollar but Itis It ll llis is nearer actual parity with silver silvor and andIs is s. s therefore ole much soun sounder er There is I every reason to anticipate that conditions condl- condl I ions in south China will Improve but high exchange Is likely t to continue lo to affect the general Import an and export tra trade rado o Indefinitely I