, 1876-08-09

annum in silver, and an estimate of the I'LL
innate yield of the Consolidated Virginia
and Californian Mines adopted by the Mint
Director puts it at .916, 500 900 in silver.
There isno difficulty in understanding that
the increased yield Of silver which has 0c-
cured in the United States 10 due to in
creased facility in getting it when we hear
that out of II millions of dollars produced
in the Consolidated Virginia Mines in
1875 10 millions were distributed in divi-
dends. Seventy per cent. of the produce
was profit, and it of course follows that,
so far as these mines 60, silver might fall
to a third otits recent value before their
working became Improbable.
A first cause in the decline in the value
of Silver may evidently be found in the IN
creased facility of its production in the
United States, and there is no reason to be-
lieya that this cause will slacAen the rate
OF its production, except as a consequence
ola further decline. There is, however,
another cause to be found in the demoneti-
cation ofSjIver in Germany. II this opera
ton had occurred without the contempo-
rary increase of production in the United
States, it would have occasioned O fall in
the value of Silver. Silver, when prOduc-
ed, is used as coin and for objects of do
nestle use and ornament and when a great
country ceases to use the metal as CON-, a
certain quantity hitherto so employed IS
thrown upon the market, while oae OF the
modes Of disnosiaG of the Silver newly pro
duceJ is for The time destroyed. The first
operation would be equivalent TO sudden
increase In production in the year, and ITS
eft cr would be sharply teIC, but would
gradually pass away. The permanene des-
t|ruction Of a use for the metal would per-
mancntIy lowe. its eXchangeable value, but
the least productive mines, ceasing to be
profitable, would be abandoned, and the
production diminished, thus causing a par
tial recovery OF the value at first lost. Iho
demonstration ofSilyer in Germany would
thus occasion a sharp fall at first, followed
after a time by a rise, which would, how
ever, leave the value of Silver permanently
lower than it had been at first. The Select
Committee have been unable to form any
precise estimates of the share of the fall
that has happened due to the policy OF the
German Government, the amount OF the
Silver thrown, and to be thrown, upon the
market being extremely uncertain. There
is, however, some reason to believe that
the fall which has occurred, though it will
be supported by the diminished cost OF
production in the Uaited States, may, in
fact, be traced to The policy OF Germany
moro than to American production,
because the quantity OF American Silver
thrown upon the London market IN the
last two years has absolutely diminished,
Willie we have received no uncomfortable
portion of the six millions officially stated
to have been sold by Germany. The
increased Transatlantic produce has been
kept in the United States for the purpose
of establishing Silver currency there ;
the German surplus has been brought here
because q Silver currency is disused.
There is a third cause of the decline in
the value of Silver, which has probably
been as efficient as the demonstration of
the metal in Germany, and which pro-
misses to be permanent. London has been
the great Silver market of the world, but
we have always bought to sell again, and
it is 10 India that we have found the
customers to buy it. In our trading trans
actions with India we have been in the
habit of squaring our accounts by an ave-
rage payment of II millions a year, or
t~hereabouts but the Government in In
IL - oruo5 H. TuI;o N1-ou,onoE oE