e melted up. This condition was later
followed by an equally striking drop in price as supply caught up with
demand.

In the United States, as in many other countries, it was desired during
the war to accumulate large stocks of gold as a basis of credit for the
flotation of government loans, and the export of gold was prohibited.
Consequently in the settlement of foreign trade balances, particularly
with the nations of the Orient, very large amounts of silver bullion had
to be used. Current production proved inadequate, and it was necessary
to utilize the stocks of silver dollars in the United States Treasury.
To this end the Pittman Silver Act, passed in April, 1918, authorized
the melting down and conversion into bullion of 350,000,000 dollars out
of the Treasury stock, and the retirement of a corresponding number of
silver certificates and the issue of Federal Reserve bank notes. In this
manner old stocks of silver, Manila dollars, etc., were called into
service--though the stage was not reached, as it was in Germany, where
it became necessary to melt down silver plate and ornaments. The silver
used for exchange and export was to be replaced by the purchase of
bullion from American producers at $1 per ounce, and its coining into
new dollars. A minimum price of $1 per ounce was thus established for
silver bullion.

The immediate result was to increase the price of silver at the mine;
but with the continued rise in demands for silver, the price in the open
market went far above this figure, the maximum being reached in 1920
when the price of silver went to $1.39 per ounce. Naturally, but little
silver was then offered to the government at the fixed price of $1 under
the Pittman Act. With the more recent slump in the general market for
silver to a price below $1, offers to the government under the Pittman
Act have been renewed.

That part of the silver production which is a by-product of copper
production has been low since the war, because of the stagnation in the
copper industry. The production from lead ores, on the other hand, was
not handicapped by lack of demand for lead. With the restoration of
order in Mexico, a presumption of large silver production in that
country may be expected. Increases may probably be expected also from
new mines in Burma and from Bolivia. On the whole, no large increase in
world production can be assumed from present known resources. New
discoveries will be necessary to make any consi