The herald., 1895-04-02
ADVANCE IN THE PRICE OF SILVER

The fact that the white metal has
gained better status in the markets OF
the world. is a subject of comment by the
newspapers and in financial circles. 1t is
a statistical fact that advance or decline
of silver is accompanied by the same re-
suit as to the prices of property, and es-
pecially of the articles of commerce.
The advance of the price of silver is,
therefore, hailed as portending an i'm
provement in the market value OF other
commodities AS to the cause of the adj
vance in silver there is a variety of
opinions.
One class thinks it is in consequence OF
the growing bimetallic sentiment in
Europe, which must lead to a larger
monetary use of silver. Another class
supposes that the prospect of an early
close of the Asiatc war is the cause, as
trade will then revive with the Orient,
and as China and Japan are sill
yer nations, there will be a
larger demand for the white metal.
There may be something in both OF these
views, but the greatest of all causes of the
advance in the price of silver is to be
found in another fact, which is the railing
off in production.
The decentralization of silver successive
ly by Germany. France, the Latin Union
and the United States seriously lessened
the consumption of silver and had para
lying effect upon silver mining. The
passage of the Band law created de-
mand for $24, 900, O0J per annum, which
consumed more than half of the produc-
ton in this country, and the substitution
of the Sherman law, which required the
Government to purchase "a, 900, 900 ounces
annually, still further enhanced the de-
mand; but when the latter law was repealed
and consumption of silver was reduced
to use in the arts and manufactures and
subsidiary coinage there was an immedi-
ate overproduction, which necessarily
sent prices down until there was no profit
in mining, except in few special cases
and where the ores are rich, or where
mining and treatment of ores can be
carried on at very small cost. Until de-
preston in mining came on, the United
States produced nine-twenty-fourths OF
the silver of the world. In this country
the falling off in production has been con-
siderable, and the industry has dropped
in all other silver producing countries.
The stock on hand is being exhausted
and consumption otherwise tina in coin
age goes on constantly. We're silver coin
age adopted in this country the commod-
ity value would at once become equal to
the money value and then the two values
would remain the same. The commodity
and money value of gold is the same. be-
cause the commodity can at once be con-
verified into money on fixed basis as to
weight and tineness. The result would
be the same as to silver were it trested as
gold in the matter of coinage.
As soon as the price of silver goes to a
point which will justify it, mining will
be resumed on large scale, and will be
continued until there IS overstocking of
the market, which will again cause the
price to recede. There is limit to the
demand for use in the arts and manufac-
lures, but were there free coinage the de-
mand would be limitess, and there would
be little or no change in the market
values Without free coinage of silver
mining will have its ups and downs, and
will not, on large scale, become per-
manently hourishing industry. 1t win
be hazardous as long as bulls and bears
in Wall and Lombard streets can pre-
to the possessors of silver bullion, the
producer can protect himself by getting
his product coined Gold mining has no
ups and downs because there can be no
manipulation of the markets which de-
press the price of bullion below coinage
value. or price it above that value.
All classes of people, except the hoard
ers of gold, are glad to see the price of
silver advance, because it foreshadows i'm
prove ment in business and better prices
for manufactured and agricultural prod
ucts. Ii it is asserted that values of prop
erty are influenced by or are in sympathy
with prices of silver, it would be well to
provide larger demand for silver through
coinage. 1t would certainly cause its
price to advance far above what it now
is, and its beneficial influence would be
increased as it would assure a larger
volume of money for the accommodation
of business.
THE CAUSE OF SAN PEDRO