FINANCIAL NOTES
SILVER AND THE CHINESE WAR.
Art hit many months of comparative inactivity, silver has suffered some violent fluctuations through indirect effects of the Sino-Japanese War. For some time the main support of the silver market has been from India, where some specu- lative buying took place in July on the strength of " incidents " between Chinese and Japanese forces which were expected to lead to war, as they have done, and were regarded as likely to cause a rush for silver holdings. But China is no longer on the silver standard, and the only effect of the war at first was to result in stagnation in the silver market. But a steady flow of silver was reported from Shanghai to Hong-kong, and this induced nervous Indian re-sales which depressed the price from god. to 19 316d. per ounce, the lowest for a year. American trade buying was attracted at the lower levels, but no real support was forthcoming until India again became a buyer on the disclosure of the fact that the silver transported to Hong- kong was for the Bank of China, no private holdings being concerned, and that therefore it was unlikely to come upon the market. Prolongation of the struggle in the East might be expected to bring in some renewed demand for silver but, otherwise, India remains its main support.
* * * *
Previous page
