Eureka weekly sentinel. [volume] (Eureka, Nev.) 1887-1902, 1892-09-17
H SILVER CRISIS.

We take the following leading edito-
rial from the London Mining Journal,
Railway and Commercial Gazette OF
August 81, 1892. from which i. will be
seen that England feels the depreciation
in the price Of silver, and that the COM
mercial community as q whole feels
bound to abandon its attitude Of indiffer.
ence:
The fall in silver prices, which for .
long while past has been evoking the
complaints Of q certain number OF
"galled jades," appears at length to
have reached a point at which the COM
mercial community as a whole feel bound
to abandon its attitude Of indifference.
The fluctuations in the value OF the
white metal have proceeded so far as to
threaten the diso~rganization of interna.
tional trade, and to provoke the nearly
unanimous sentiment that something
must be DONE" To this opinion even
the laissez-faire doctrines of the most
orthodox economists are reluctantly sue
oumbing. We venture to say that no
portion of the community is more seri-
ously affected by the existing crisis than
the British investors in mining and rail.
way enterprise. The countries with
whose mineral and transport develop
nent British capital is associated are pre-.
sisely those which, either as producers or
consumers, are especially hard hit by
the depreciation Of silver. In the case
Of Australasia, for instance, the effect
Of the decline is not only to check the
expansion of q mining industry already
included amongst the country's most i'm.
portant resources, but it also tends to
hinder its trade in other products. In
the case Of India, on the other hand, the
trade with this country is seriously ham.
pered, and the difference between the
current rate Of exchange and that upon
which the revenue has been estimated,
seems to menace our Eastern depend
ency. II the drop continues until the
rupee is only worth Is. or l0d. instead Of
the present figure of Is. 2 l7-32d., it
will become difficult to devise q means
by which this calamity can be averted.
The rotten financial basis upon which
Indian affairs are established restricts all
enterprise. and is notably prejudicial in
its effect upon railway extension. The
Indian Government feels itself unable TO
accept the responsibility in the present
state of the currency Of guaranteeing in.
terest to be paid in gold upon new
schemes Of transport development, and
thus an excellent channel of investment
is closed to moneyed men in this coun-
try. and the proper opening up OF the
mineral and other wealth Of Hindostan
is retarded. To turn to other spheres OF
British trade and investment than those
within the Empire, there can be no ques.
tion of the evil effect of the depreciation
of silver upon the prosperity Of Mexico
"a country which has absorbed several
millions Of English money in the ex.
ploitations of its mines and the construc.
tion aud working of its railways. or upon
that of the United States, whose trade
interests are ~inseparably associated with
our own. The seriousness Of the present
position, 30 far as il relates to silver min.
ing, is easily made plain. Last year the
average value OF silver was 45d. per
ounce, and this week it has fuctuated
at varying fractions under SD. This is
a decline of I'd. per ounce, or about ISL
per cent. and it must obviously mean an
important difference to the silver-produc.
ing countries. Mexico. for instance,
during 1891 exported silver to the value
of fS, 400, 900, or more than half the
value Of its total shipments. If the de-
cline goes so far that it is found impossi-
Bile to work the mines proftably. and
many Of them are closed, not only will
the British shareholders in silver mines
suffer, but the entire body Of British in
dustry will suffer from having to accept
a deprecated currency in exchange for
its products. 1t is clear that a decline
OF l5A per cent in the value Of silver
must mean either hat British trade with
the silver-using countries must be con.
Quoted at q loss or that q rise of prices
must take place. But. in the latter
event. consumption is only too likely to
seriously fall off. From this dilemms
there is. so long as silver prices continue
to descend, 10 possible escape, and ii is
it's effect upon our trade with the East
which is q of the principal factors in
maintaining the present depression Of
trade and finance in this country. The
position in Lancashire is so serious that
numerous mills have been closed, and
the textile operatives have been con-
strained to revoke their irmest convic-