The morning call., 1890-05-01
THE RISE IN SILVER.

In view Of the recent course of silver in
the markets of the world, the Mint estimate
of production, which was published in TIE
CALL of Tuesday, is a document of i'm
portance. Silver has been steadily advanc-
ing in gold value for a twelvemonth it
now stands at 81 o. an ounce as against
81 cents some months ago. The rise of II
cents an ounce means life to mines which
could not be worked at a profit VIXEN the
price was below % cents. 1t has already
caused the reopening of a number of mines
in Northern Mexico and shipmeut in the
year 1883 OF not less than 500, 900 ounces
of silver bullion from Mexico t. his coun-
try.
The Director of the Mint reckons the
total product OF silver in the United States
in the year 1889 at $40, 900 gold value,
being an increase of some So, 900 over
1888. He estimates the worlds product in
that year at Sly, 650,O0O, so that 40 per cent
of the whole worlds yield came from the
United States. But when silver fell to "a
cents a number of mines producing low
grade silver ore had to be shut down.
They will now be reopened, so that there
is prospect of the output of 1890 being
larger than that Of 1889 Whether a largely
increased yield of silver would cause re-
action from the recent advance in the price
will depend on Congressional legislation.
The design Of the silver men, when they
appealed to Congress for action, was to pro-
vide market, at remunerative figures, for
all the silver that was produced in the
country. But it is evident that the pro-
posed legislation, if it goes into effect, will
do more than this. If the Mint is required
20 coin silver to the amount OF four or four
bol mil 10 ,p;n
from S4S,00O,000 to So, 1000, 600 to supply the
demand, independently of the consumption
of silver in the arts, which must be reckoned
at SIS, 100000 more. This would involve i'm
| portations of silver from South America
and Europe. Monometallists, foreseeing
this condition of things, have described the
pending silver bills as schemes to make the
United States the dumping ground for the
surplus silver Of Europe. But they forget
that there is no premium on gold in the
metallic-currency countries Of Europe
| and consequently no surplus of silver.
| They have no silver to spare for export to
this country; and if, owing to Congress
| sional legislation, an advance in the price
here over the price in Europe led to ship
ments to the United States, it would be
quickly followed by silver famine in Eu-
rope, and the metal would go back whence
it came as fast as steamships could carry it.
In sober TRUTH the world is short of both
gold and silver. Commerce has outgrown
the supply of both metals. There is not
enough of either to satisfy the wants of the
commercial countries in respect to met
allie currency. For many years it has been
evident that the first general commercial
| crisis will demonstrate the necessity for the
use of silver. The world is now coming
nearly $500, 100000 year of the two metals
| and is only producing about S23O, 0OO, OOO
| The moment general failure of confidence
| impels bankers to convert their capital into
coin, and to hoard it in their vaults, a crisis
will occur of which it is difficult to foresee
the consequences.
| 1t is not easy to determine the conclusion
which Congress will reach on this subject
But those who are best able to judge are of
the opinion that something is going to be
done, and it is obvious that whatever Is
done will be done in the direction of in
creased coinage. The broad interests of
the nation would, perhaps. be better served
If persons directly Identified with the silver
mining industry, and whose views are nat
urally open to the suspicion of being COL
ored by selfish aims, did not take SO prom
iDent part in the discussion.