chapter  VI
International Implications
WithBarthold A. Butenschøn
Pages 21

The effectuation of international payments by way of transfer of metals from one Symmetallic Central Bank to another will virtually not differ from metal transfers between mono-metallistic Banks. If the Banks used an institution as a depot for part of their holdings of silver, they would, when transferring metals in the statutory proportion, transfer only the gold physically, and would transfer the silver in the form of a claim on the international silver depot. Proposals have been made that the Gold Standard countries should be able to include a certain amount of silver in their reserves while still adhering to the Gold Standard. In order to carry out a certain silver policy it might be convenient to operate through an international agency which could control the silver market and anticipate factors influencing the demand for and supply of the metal better than the individual Banks.