The daily gazette., 1876-07-31
The Report on the Depreciation OF
Silver


From the Lonlon Pail Mall Gazette.
AS we showed few weeks ago. the
fall in the price of silver has been
from 62d. per OF, ten years ago to SD.
at the end of May, and last week it
had reached 48fd. This is a depre-
citation Of over ~ per cent. since 1872.
The effect on the Indian exchange has
been fall from 1s. III, the highest
rate between 1862 ard 1867, to Is. 84d.
last week, beng depreciation of Sid.
or nearly one-fourth of the rupee.
The causes of this extraordinary de-
probation. in the opinion of the com-
mitte,e are these The discovery of
new silver mines of great richness in
the State of Nevada, the Introduction
of gold currency into Germany in
place of previous silver currency,
and the decreased demand for silver
for export to India. The committee
add as contributory but less influen.
tial causes the Limitation by the ma
tions forming the Latin Union-France
Italy, Belgium, Switzerland. and
Greece-of the quantity of Silver al
lowed to be coined every year, and
the preparatory steps taken by Holland
tor the adoption of gold currency. We
haye on several occasions already
shown from the official American sta
tistics the greatness and the rapidity
of the increased productiveness OF
American mines. In 1853 the whole
ont-turn of silver in the United States
was no more than 220, ,000-a merely
nominal amount; in 1852 the yield had
increased to 5000 900: in 1868 the aver
age of four preceding years was e.
325, 900; and in 1878 the production
had reached $1,000, 600. During the
the past two years il is stated not to
have exceeded eG,000.000, which
would seem to a diminished output.
But we believe the true explanation
is different. Silver and gold are al
ways found together. There was a
certain.proportion of silver in all CAL
ifornia mines, and there is large pro.
portion of silver in the Nevada mines,
varying from to As per cent. But
the two metals are not always distin-
guished in the returns. This leads to
constant misconceptions. In all the
rest of the world the production is es~
timated at about e7,000,000, which
would give total production of about
G13, ,0O0,( 10, or not far short of twice
the quantity raised quarter of GEN.
tuaIy ago. Not less important than
the production of the past few years is
the probable production of the future
but the committee saw insu perable OBJ
Ijections against attempting to deter
mine that, either by sending out an
official English engineer, or employing
a person on the spot who might be in
terestedin the mines.
They content themselves therefore
with the estimates of the American
officials, as checked by the agents oi
the Messrs. Rothschild, and by a gen
tleman who, though not French Off
cial, is charged by the French Mint tc
collect statistics for it, and this is the
result at which they arrive: "On the
whole, your committee are of opinion
that the total product of the United
States could not be safely estimated at
less than go, ,0000 900. 1t will be remem-
bered that the production of silver in
the world, exclusive of the United
States, was estimated at $1,000, 900. II
| SO, 900, 900 be produced in the United
States in 1876, the total would be
ZIG, 900, 900, provided the fall in price
and the development of the Nevada
mines do not discourage the production
in Mexico and elsewhere" This lat
ter is consideration which must moi
be lost sight of. 1t is believed that
the Mexican and South American
mines are not very profitable. Ii so,
the great fall in the price now going
on must make them actually unprofi.
table. And thus increased production
in one direction may be almost balan
ced by the decrease elsewhere.