Los Angeles herald., 1890-04-27

senses. Meanwhile, SnreWuer men see
opportunities for speculation which they
will not neglect, and the stimulating
effect of any possible silver legislation is
not likely to lose it's force for want of
assistance. For period, therefore, we
may expect to see general upward
movement which will not be restricted
ITO Wall street.
Silver has been active, owing to in
creasing speculation in London, where
the price has touched 461sd One rea-
son for the advance there is that the
Bank of Bengal, Calcutta, rate of inter-
est is II per cent. As this bank occu-
pies a corresponding position to that of
the Bank of England, this high rate has
an important influence upon the silver
market. The rupee being in active de-
mand, this partly accounts for the
recent heavy shipments of silver from
here to London, the average of which
has been about 100000 ounces per week
for some time past. Silver has been
steadily declining since 1878, when the
price in London was nearly God. Since
then the fall has been gradual, until
recently it touched 40d, the chief cause
of depression being the accumulation in
the United States. At God per ounce
silver is on a par with gold at a ratio
of sixteen parts of silver to one of
gold. This price is equivalent to 129
cents per ounce here, our silver being
1000 fine. The United States Govern
ment now holds $30S, ,00O, 900, against
which silver certificates are outstanding
for all except $16,000,000, which latter
amount can be put into circulation. As
it is not unlikely that Congress will at
least increase compulsory coinage from
$2,0000O0 per month to $4,500,000 the
last figure would about absorb this
country's entire product of silver. For
a long period the price of silver bullion
certificates has nominally ruled at SO on
the Stock Exchanges but owing to, the
export demand and prospective legisla-
ton the price has within few days ad-
vanced beyond 102. Speculation, how
ever, is restricted by the small available
supply outside of the treasury. If the
Silver bill be passed and exports
consequently stopped, the tend
ency will be to transfer control
of the silver market to New York. This
will certainly be favorable to American
interests, for the aim of England is in
variably to depress silver in order to
which, whether composed of silver
bought at 4Od or God buys in India the
same amount of wheat and other pro-
ducts. Consequently, the dearer the
rupee, the less grain India is likely to
export and the better the foreign de-
mand for American wheat, which has
suffered so much from the competition
of India. In this connection it is inter
esting to note how widely silver is used
in coinage. China, with population OF
400, ,000, 900, and India, with population
of nearly 10000, 900, use silver as their
principal basis of coinage. OF the great
powers, only Great Britain and Ger
many cling to the single standard, while
all the remainder, including the United
States, use both silver and gold.
We can claim pardon from our readers
for reproducing the foregoing in full, be-
cause its admissions are so absolute. 1t
is pleasant to see circular of Henry
Clews & Co. practically quoting HERALD
editorials as they have appeared for
months past As matter of fact, the
views presented in the foregoing have
been in vogue in these columns for
years. The talk about ignis .fatuus and
temporary madness is laborious pro-
cess by which the gold-bug pirates are
to be permitted to drop easy. There
will be no more reaction in this matter
than there would be in the case of a par
alytic of four score who was having the
blood of a nineteen-year-old maiden
pumped into his veins. The effect of
the reconciliation Of silver can only be
rejuvenescent as to all the interests of
the Pacific Coast and of the country at
large.
We beg our readers to pay special at
tention to the department of the Clews
circular with has reference to silver,
the rupee and the production and pur-
chase of East India wheat for the
English market. The California farmer
will see in this delicate little device the
instrument by which he has been ham,
strung in the past. He paid little atten-
tion to the language of truth and sober
ness when he received it through the
medium of the wise and never otherwise
utterances OF this journal. Perhaps he
will think more of it through the
medium of the periodical circulars of a
New York tock-jobbing concern.