New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-07-31
THE SILVER CONTROVERSY.
INDIA. GERMANY. AND FRANCE.

c,p. A correspondent who signs his communlca-
.;on "Gn calls in question in yesterdays tribune
.oe Of the statistics used in my recent letters on
,be Silver question. As correct premises ana accu-
ta figures are absolutely essential to night conclu-
- y ;s very desirable that there should BE- no
mistake about them, and l therefore welcome the
- criticism that may be made of anything
,rto mon the subject. In the same spirit as that
y, rbicb | suppose "G.'s' letter was or ought 10
hare bcon written-that is with sincere desire to
rive at the TRUTH viii notice some of his STRIFE
lures. ,.,.,o,-. -,o>, ro ,>n,,
Yonr correspondent says:
m Rrtsb Committee on Silver, of which Mr. Cos
hon WAS chairman, after prolonged investigation,
eh en fhSt the gross renittances of silver TO India
SIrins fhe four years have boen &l56OOOOO com
,nd with e2s 100000 in the four previous years,
decline OF sl3,300,000 in four years or &3$22,oDo
9SsSrlv-abot Sl6,5OOO00 Yet Your correspondent III
hn ,oaTlcis OF the world by of tedecreasd de-
pand for expectation to India and the increased pro
nua production of the mines has increased less than
s3OO000O0 within 10 oGG o0n t sa 400 600 in 1850
80 PI 100000 in 1S76-it is evident that your cor
respondent knows vast deal mere anoul d avd nnt
Trade than Mr. Goschens Comnttee couo NM V',' ~
IL Slso states that the accumulation ilOm the htst W
these causes alone ,S S@ Gerss oo 600 6S to
bccorilpg to the obviously illniormed Paridhen'dI!
rnmifiee the decline OF expectation during Ioul H'
sInce silver began TO fall IN prlce-nas Oeeh "DOu'
s660C0OOO. The didercnceis considerable
Nv authority for the statement that 1.-THE surplus
IT, onnuallv thrown on the markets of the world
nv reason of the decreased demand for expectation
20 India and the increased production of the mines
ia about 100000" was the report OF MeSSrS.
Feer and Herzog Swiss Commissioners to the None
tary Conference of the Latin Union, held IN fars IN
January and February last. These gentlemen, ana
esnecalv the latter have the reputation IN Europe
of being very careful writer's on this and kindred
subjects Mr.. Herzog, who probably drew up lhe
renort has been Speaker Of the Swiss National Coun-
Gil and lifelong student of financial subjects AS
the statistics he gives are based on the very
thorough investigations of the Monetary Council OF
the Latin Union. venture to quote from the docu-
ment referred to-
We gave last year detailed statistical statement on
tbe commerce OF India and the security OF It's balance
snIts Of the nneXpected changes which have occurred
San be summed up IN the two i0llOwlhs amounts. i
g the period 1850 to 1885, the annual average oi
liver exuortaOn from Europe for Egypt and the East
was, in round numbers, 297,oOOOoO francs. lAs Saio
100000 francs. We may add that this expectation
1urng the year 1878 was &4.516.OOO-that Is to say
Commercial Review for 1870, page y Tins enormous
change in the power OF absorption that the last Formerly
had in regard silver. and the considerable depreciation
OF this metal which has resulted from IT, nave mary
produced great dec Inc in exchange on in9la ma
fhp English Government and the COmmerClal pubilc
have been greatly agitated by it, Parainehtaf! M
Quiry has been opened on the sa9lect' ana = oCeSa
some new information from 1t. But we can say dl"t
from this time there VIII arise ron tne ~ sG0
O quantity Of silver amounting 70 nearly -OV"VU,OVO
francs year which is unemployed and which requires 70
be employed somewhere.
Two hundred million francs is about Si0,0O0OOO.
In another part Of the same report McssrS teer and
HerzOg say:
On the other hand VIC have seen that the prodqcoR,
of this metal has increased 11jOOOOOO francs, winch
has also cOms to burden the market.
One hundred and seyenty-ve million francs is
about equal 10 $50 900, 900. The production Of the
Comstock lode alone has increased from 81, 100000
in 1860 to $26,023,O36 in 1915 or more than
$4,000 600, from which there should he deducted,
however about 30 per cent which has been gold.
Add TO this the increased production of the South
American mines caused by tie construction Of rail
roads across the mountains that Of Mexico during
period of comparative peace, and the product OF new
mines opened elsewhere especially in our Western
States and Territories, and the amount Will proba-
bly, be nearly what Messrs. Fcer and Herzog eSti-
mate it at In any event, took their estimate
and the sum of the SURPRISES from the two sources IS
what placed il at, $50, 100000.
REAITTANcEs TO INDIA THROUGH FRANCE.
When wrote the letter referred to l had seen
nothing about the report of the British ParlIa-
mentary Committee of which Mr.. GOschen was
chairman and don't think any of the journals CON
tanning extracts from it could have reached Wash
ington at that time. now have the conclusions Of
that Committee from which your correspondent
&c" quotes. and think that little more careful
and intelligent reading of them would have shown
him that Mr.. Goschen's Committee arrived at the
same conclusion which reached in regard to the
amount of surplus silver which is annually thrown
Oh the markets Of the world by tie increased pro-
ductiOn of tho mines and the diminished power Of
India to absorb this metal 1t us true that according
TO that report the falling of Of the exports Of silver
from England to India has been only about SlG,-
100000 per sunum in the last four years. bnt the
variations of the exports of silver from
England from any other single cOun-
try are very imperfect induces either
Of the amount Of silver which goes from Europe to
India or Of the power Of the latter to absorb There
have been periods when the silver balances paid TO
India for goods bought by English merchants have
been large and increasing while the amount Of sill
yer exported from England has at the same time
been comparatively small and decreasing The cx-
PLANTATION Of this is that English merchants paid
with Fronch silver When silver is cheap it natur-
ally flows 10 thOse countries which have doubic or
silver standard. driving ont tie gold; when it s
dear the gold goes back and fills its place again. So
in the instances have named heavy stock of sill
yer had accumulated in the Bank Of France, and
English merchants paid their India balances with
DIS on france WHICH luCg pUICHtStu Win inc
cheaper gold. 1t may. therefore, be true that the
exports of silver from coWtiy that is paying large
balances to the East may be small and it is certain
that the amount of those exports from any single
country 10 India is very unsatisfactory measure
either of the condition of trade between that conn
try and the East, of the power of the latter to alb
sorb silver. England might have to pay to India a
balance IN silver amounting 10 millions Of pounds
and yet not export single pound, while the bal
ance between France aud India at the same time
might De in favor of the former, while she send