, 1876-08-12

remaining GOyOUOtUOO lSuoWOo n WHS'S "a
the silver currencies and supplied the Eastern
demand, and as the price remained tolsrably
steady, may be assumed to have been just
sufficient to do so. This sufficient supply was,
however, more than doubled by the discoveries
in Nevada, Utah, and California, where q new
production of silver has already risen to
97, 700, 600 a year, and is expected this year
to rise 60 0O, 900, thus raising the total pro-
duction to $500 200, or by $50 per cent.
No article of commerce could bear so sudden
and great an increase without q fall-coals,
for instance, could not bear lt-and specially
no article which does not increasingly tempt
people by its cheapness. The world hau
enough silver for its coinage before, and the
consumption for household articles is not In.
creased by cheapness, is possibly even dimln'
ished, as the demand for solid articles F" in
silver decreases with their value as treasure.
People do not care to amass q falling kind OF
property. If the American yield, therefore,
had come here unbroken, like q new cotton
or sugar crop, we might have seen still more
startling and sudden results but this was not
the case, the Americans, whose silver COINS had
been driven out by paper, wanting to renew
their token currency, and consuming for that
purpose nearly the whole of their own supply.
The effect of the new production, though, Of
course, great, ss it extinguished the American
demand on the old sources, was rather on the
Imagination of bullion-dealer than on their
store-roomS, and would have been very gradu-
al, but for the synOhr0nous decline in the
Indian demand for silver. This decline has
not been due to any great falling-oif in trade,
As q rule, Indian exports to this country have
for some years exceeded the imports by
$40 900, 900 a year In round numbers, and
though the difference Is partly made up In q
circuitous fashion, the direct remittances in
treasure and Government bills have usually
been Gl7, 900, 900 a year, and they remain at
that figure still. The decline was due to the
changed proportions between Government
Bills and Treasure -
There were RENTED between 1e68-69 and
1871-72.-
In treasure +. 80. -. se40,000,000
In Government Bills -. 90, 500, 600
Total -. -. te69, 100000
They were remitted between I872-73 and
1875-76:-
In treasure i. 9l6, 100000
---
Total -. . t967, 900, 900
In other and more usual words, paper has
driven out silver, and the Indian demand for
silver has been reduced by 96, 000, 900 a year,
that is, by nearly the entire production OF
the metal. Incomparably the largest purchas-
er, the Indian Trade, has reduced its %purchas-
er, buying paper instead, and the supply
coming TO market, therefore, has to be got rid
of, at a decline which now amounts to more
than 90 per cent. There is twice as much
silver as there was, and scarcely half as much
demand.
These two causes are " permanent, I" that is
to say, they will continue to operate for a
number of years, unless entirely new factors
oome into the calculation. There Is little
chance of the production of American silver
speedily decreasing. 1t is true, as the Commit
tee point out, that a low price for silver would
shut up many of the poorer Mexican and South
American mines, but it will not shut up the
United States mines, for they are protected by
the unusual amount of gold extracted with
their silver, frequently amounting to a third
ofthe whole sum obtained by the operations.
Surprising, therefore, the Mexican and South
American supply to diminish one-half-which
is improbable, for owners work mines for years
after they have ceased to yield profts-the
total production would only be redused to
sl2, 100000, or still nearly double tho ancient
supply Of the whole world, and this in the face
of the Indian demand reduced by one-half, and
of the gradual over-supply of stocks Of the
metal itself, which, it must not be forgot
tsn noriehna uaru alowIv The fall MIGHT