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that amount of silver would depress the price.
As against this future loss the only profit that they could set would be the profit which they made on the issue of notes. The maximum possible profit would be the difference between the value of the notes now and the value of the silver dollar now. In point of fact it would be very much less because the result of the banks bidding for silver would be to send up the price of silver in terms of dollar notes (this is of course the aim of the proposal).
The transaction thus involves the possibility of a slight profit now and the possibility of a very considerable loss later on. I gather that the latter possibility is very real. The shrinkage of trade after the War is one of the few things on which perhaps one can count with some certainty.
I hope this explanation is satisfactory, but if there are any other points on which you would like information I should be glad to supply it if
Yours very truly,
-
مسة
1
Beckett Esq.,
Colonial Office,