EUROPE USING MORE SILVER

One reason why the price of silver remained higher in 1924 than in 1923, was the large demand for silver for coinage in continental Europe. According to The Wall Street Journal, “European demand for coinage continues, and it is believed with the greater stabilization of exchange more silver will lie in demand both for coinage and the arts during the next twelve months.  Any noticeable economic improvement and stability in public affairs induces a wider demand for silver in the arts.” The Wall Street Journal sums up information gathered by Handy & Harman regarding the notable impetus given to the coinage of silver pieces during the last year in Europe.

Austria, under the law of December 21, 1923, authorized new silver coinage to consist of double schillings, schillings and half schillings to be exchanged for paper crowns at a  fixt ratio.   The coinage of the old Maria Theresa thaler is to be continued. The silver necessary to make the schillings at the rate of six per capita of 6,500,000 population is estimated at around 7,000,000 ounces. When the money was first put into circulation early last year hoarding at once took place and the Government stopt coinage and then resumed it after changing the coins from a fineness of .800 to .640.

The free city of Danzig has authorized an issue of silver coinage which will require 1,500,000 ounces of silver. Germany has a new silver coinage of five, three, two, and one mark pieces, to the amount of 600,000,000 Reichsmarks authorized. This will take 48,000,000 ounces of silver, half of which was in the vaults of the Reichsbank at the beginning of the year, and 4,000,000 ounces of which has been bought in the Unit of States.           

Latvia has authorized the issue of ten million lats of the value and fineness of francs.  Poland has authorized a silver coinage of five, two and one zloty pieces to replace the old paper mark at the rate of one zloty to 1,800,000 marks. Russia is said to be coining silver rubles, half rubles, and twenty, fifteen, and ten kopeck pieces, the rubles being identical with the old Czarist coins.

Source: The Literary Digest for February 21, 1925

This entry was posted on Saturday, November 3rd, 2007 at 6:46 am and is filed under 1920's, Economics, Finance. You can follow any responses to this entry through the RSS 2.0 feed. Comments and pings are closed.

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