People's voice., 1895-08-08
Dumping Silver.

The single clncherS are eternally
harping that free coinage, or any
equitable recognition and use of silver
by America would cause all Europe to
dump its silver on America. They
don't tell US where the silver is to
come from, or how Europe could afford
to send its coin to America to be re-
coined into money of less value than
it already carries as coin at home, but
simply reiterate that America would
be flooded with European silver. That
their theories lack sense or reason
makes no difference. But there comes
another cry from Wall street, diff
ferent tune. A firm there whose
agent has been in Europe, recommends
investments in silver bullion on ac-
count of its strong statistical position.
A circlua issued by the said firm last
week says:
When in London a few weeks ago
the writer Of this letter met Sir Hector
NJ. Hay, of the great bullion firm Of
MOcatta & Goldschmid, and in reply
to the inquiry as to the amount of
silver visible supply he estimated on
the merchandise market of Europe, he
said that he thought three millions
sterling, or s1O,OOO,OO worth, was
liberal estimate.
A couple of days ago we asked
member Of one of the largest bullion
firms of this city how much he esti-
mated the American visible supply Of
bullion bars to be, and he said that it
was not more than 81, 900, 900 in value,
adding further, that "the bars come
from the smelters as fast as they are
produced, and hardly have time to get
cold before they arrive here and are
again enroute to Europe"
If any extra demand occurs, with
such a permanent supply already in
steady operation, what is there to pre-
vent an important rise in the value Of
the white metal? The stock is small,
as we have seen, and one cannot add
to it at pleasure by telegraphing out
to the Rocky mountains for more sill
yer. Higher prices would ultimately
lead to larger production, but there
is this curious characteristic in min
ing, as different from all other forms
of industry, namely, that production
may 60 on for a long time, not only
without profit, but at an actual loss.
Why? Because the owners cannot see
in earth further than the drill and
pick, and when a mine is once open,
its operations never cease as long as
funds can be procured out of its ore or
assessments to look for new bodies of
rich ore. Wheat fields or cotton fields
will not be cultivated at a loss, for
there are no hidden products discover
able in surface operations. To illus
trate our idea we may mention the
fact that the Mollie Gibson mine of
Colorado, three years ago, the second
largest silver mine in the world, is
still in operation, though its product
is small and very nearly wholly con-
sumed in meeting expenses. 1t is
worked just as hard now as then, only
the results are poorer.
No flood of silver from the mines or
from speculative holdings of bullion
bars is possible, and any extra demand
from Japan and China in connection
with the war indemnity must mate
rally advance the price, besides re-
lieving the merchandise market of
the relatively trifing visible supply of
the white metal. We are glad to be-
lieve that rise in quotation of silver
would exercise highly salutary effect
on sentiment throughout the world,
and increase the probability of a more
favorable recognition of the merits of
silver as a precious metal in its rela-
| tiOn to QOld.-Wichita Eaolp