San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1893-03-08
INCREASED GOLD PRODUCTION.
The Yield of Silver Meantime Is
Growing Less.
Baltimore Sun.

GROWING Less.
Baltimore Sun.
In the last number of the Finan-
Cial Chronicle, of New York, there
is an interesting presentation of
facts tending to show that some of
monetary problems raised by the
cheapened production and de-
creased price of silver will ulti-
mately be solved by the operation
of natural causes, without hav-
ing recourse to the magic of legisla-
ton. Since 1873 silver has been pro-
duced more abunduntly and at
less cost per ounce, year by year,
than ever before. There has been
an OverproductiOn of it. 1t has
been forced upon the market in
quantities exceeding the normal
demand, with the result that, like
corn or cotton under like circum-
stances, it has fallen in price. Not
withstanding the fall in price it
continued for years tO,be produced
in increased quantities at a profit
owing to the invention of ma
chinery, processes, ETC., that
very greatly reduced the mine-Own-
er's expenses. At $l.29 an ounce,
the old price, silver was profit
able metal to mine. At soc an
ounce it was still profitable, thanks
to the progress of metallurgical
science. But at Soc an ounce the
margin of profit is narrow for many
mines, and a price of 20 cents an
ounce would, it is believed, close a
large majority of the silver mines
duce, it is true, at less than half
that figure per ounce, but their
number is small and their produc-
ton is limited in amount and
time.
The Financial Chronicle makes
the important point that the de-
cline in the price of silver has al
ready begun TO affect the yield.
This idea is sustained by the sta
tistics of production in the Uni
ted States and in the world at
large In 1892 the silver camp of
Creole, in Colorado, developed an
immense production of silver at
very low cost. Our product for the
year is greatly swollen by the
Creole mine. Yet, nOtwithstand-
ing the great yield from this par
ticular source the total product
of the United States declined
in 1892. Mr.. Lcech, director of the
Mint, says that, according to his
data, "the product has fallen off in
every section of the United States,
except Colorado" Mr.. Valentine
misunderstanding COlOradO-a
production of j7,9S9,69O ounces in
1892, as against Gl,35O,2OG ounces
in 1891, a loss of 3,36O,5I6 ounces.
There is little probability that an
other Creole will be found. On the
other hand, it is probable that the
old mines will continue to de-
crease their production. In
1888 Nevada produced 5,4l4,062
ounces, in 1890 but 4,4jO,00O ounces
and in 1891 but 3,52O,OOO ounces
illustrating the effect of lower
prices on yield. In Australia there
is a decreased production, apart
from the effect of the Broken Hill
strike, in Mexico and South Amer
lea the low price Of silver has been
less felt, but is will there too, it is
thought, ultimately close up a
number of mines. The worlds
production in 1892 was I39, 733, 936
ounces, as against 140,S35,992 in
1891. In the latter year we pro-
duced Al per cent of the whole
yield, but hereafter "Our cOntribu-
tion," in the Chronicles opinion,
"will be declining factor in the
worlds aggregate supply" If
the Chronicles reasoning is
correct, silver is not likel V to
fall very much below the present
price.
The production of gold, however,
has increased and there is q pros
peCt of an increased rate of output.
The worlds production in 1892
was about 6,6l5,6ll ounces, worth
Sl4O,5lO,OOO, as against a prOduc-
ton in 1891 Of 5000, $50 ounces,
worth $l2S,6O6,OOO. Our produc-
ton was slightly less than in 1891,
but the Witwaterstrandt mines in
South Africa largely increased in
their production of gold. An in
crease of the worlds gold supply
and a decrease of its supply and a
decrease of its supply of silver. III
continued, must ultimately beget
movement back toward the old
parity. That we shall ever reach
it is, however, hardly to be ex-
npptp1