So far I have not taken into consideration the production of silver and the effects of demand or want of demand on its value. Production will follow demand because unlike gold, whose increased or decreased production makes its influence felt only indirectly, the effect of increased or decreased silver production is directly felt in the fall or rise in its price. Except where silver is a by-product in certain mines, there is a cost below which it would not be possible to produce silver. Moreover, silver is more a commodity, like wheat or corn, than gold, which is taken up, in any quantity, immediately it leaves the mines. Therefore, it is a safe assumption that the output of the mines would entirely be controlled by demand. There is demand for silver from the Governments for coinage and for arts. To-day, the greater part of the silver production is consumed in the arts and except during years of exceptional prosperity or unparalleled misery, as on the occasion of the present war, the offtake of silver for the arts is more or less easily gauged. During recent years there has been a steady rise in the quantity of silver taken for this purpose. The other source of demand is rather an uncertain quantity, although, however, recent experience has shown that a fair average may be struck by taking into calculation a number of years. Nevertheless the absorbtion for whatever purpose of a large quantity by a particular country at a certain period leads to a temporary rise in values, as in the case of the Indian offtakes during 1906/7 and 1912/13. Similarly, the disappointment caused by the Chinese not buying during 1913 and India not buying as much as silver holders thought she would have to, led to a large depreciation in values. China, however, has always been an uncertain quantity in the silver market, because few could foretell with certainty the course of her trade. Once she has a fixed currency, and a fairly correct estimate of the volume of trade which would be possible when the currency is less unstable, she would no longer be an uncertain quantity. The price of silver would, therefore, be steadier and at a level higher than has been the case during recent years.