THE ADVANCE IN SILVER

Otago Daily Times, Issue 17823, 3 January 1920, Page 13

THE ADVANCE IN SILVER

The cabled quotation for bar silver last week was 79£ d per ounce standard, whiie before the war the price ranged between £i4d and 26d per ounce. 'lhe exchange value ot the rupee is now 2s 4±d, as compared with la id prior to the war. This appreciation in the exchange is affecting ibastern trade and adding considerably to the Co3t of Eastern produce, apart irom the actual rise in the pnco of commodities. The tea plantar in Oeylon, the Indian peasant groving rice or jute, and those exporting such commodities want to be paid in the currency of the country. Thus a H&vf Zealand merchant buying a thousand *upees' worth of tea has to pay considerably more than prior to the war. When the rupee stood at 1b 4d the New Zealand merchant had to find £66 13s 4d, plus the freight and insurance, to obtain his 1000rupee tea shipment. For a similar shipment now ho has to find £118 16s, plus freight and,insurance. The freight charges are higher, and the prim© cost of the tea is higher; but the direct effect of the adverse exchange is that £52 Is 8d more has to be paid lor the same quantity of tea than in the prd-war period—an increase of 78g per cent. Li view of this it is difficult to see how it will be possible to avoid a sharp increase in the prices, of Eastern commodities. The very high price of silver is proving a strong temptation to melt silver coins, and there is danger of such coin disappearing in the melting pot. It was estimated some time ago that tne price of bar silver would have to reach 5s 8d to give the moltera of coins any profit, but that price was exceeded lone since, and the price last week was 6s 7id per ounce. There is every prospect of silver coins disappearing from oircjlation, notwithstanding the faot that it is illegal to molt down coins (says the Dominion). India is the great sink for the precious metals ,and precious stones. Th& use of precious metals in artistic industry is bound up wit 1 1 the religious and marital customs of the people of India, and these customs cannot be upset by legislative Acts and decrees The demand for purposes of d<ym«rtiio and religious manufacture varies from year to year on account of the character of the 6easons, the extent of the great pilgrim fairs, and the astrological propitiousneas of the times for marriage. There is also a great absorption of rupees or bar silver beyond the frontiers of India. The rupee is accepted practioally all over the East, because it is the only Eastern coin of silver-using countries which has not undergone depreciation or debasement over a lons series of --ears. India, on her trade balance, is able to demand the high exchange; that is to say, her position in international trade is such that she has more to receive than to pay; she is, in fact, very much of a creditor, like the Unitedl States and Japan. The dollar exchange and the rupee exchange aro both adverse to Great Britain and to the dominions with sterling currency. The probability that silver coins will be in short uupply has led the Federal Government to provide for the issue of 5s notes, and it' is not unlikely that some similar provision nuy be made in New Zealand. It is a wonder that some effort is not made to call in tbe damaged silver ooing that cannot 'bo circulated, but which could be aocepted at tfheir faoo value, and sent for rocoinagc or otherwise dealt with. It does not seem i likely that the Imperial Government will take any steps to stabilise either the dollar ' or rupee exchanges, preferring that a solu- \ tion of the problem should bo brought about j by natural lavre. The imports from the United States and India must be checked, and if toa becomes very dear the peoplo may be forced to drink ooffco or cocoa. However, international trade will follow the lino of least resistance and l trade is groping for tihifl lino. An illustration of the difficulty of the position is afforded by the sale of a , line of copper by London merohante to : O.ocho-Slovagia, the payment for which was' to be made in hops. The barter system appears to be the only moans of restoring international trade in oases where low exohango countries_ have to deal with those, whoso exchange is high.

— The- West Ead, London, is tackling ths laundry problom like the East End. It is doing the washing at home, only in a different way. A colonial millionaire has started a small nritato laundry adjoining his residence at the Piccadilly end of Park Inno The amount of work performed in a recent week would, according to present prices, have cost £45. It was turned out in Park lane for £'10, inclusive of wages juid material. The plant consists of two rotary washing machine*, one hydro, a small flat-work ironer, several electric hand-irons, and a small hof-air riryinjf room. This diminutive plant Is driven bv electric motor, and the steam for the washing machine and calender is generated by a "coffee-pot" boiler.