Arizona weekly citizen., 1895-10-19
SILVER iS UP
The Rise Attracting Atten tion Both Here and
 in Europe.
AFFECTS SECURITIES
It Has Direct Bearing Upon Our Railway Systems, as Well as
 Those of Mexican Lines.

NEW YORK, Oct 1.-The strength
 and activity developed in silver contin
 ued throughout today's dealings, and
 prices on all sides ruled materially high.
 CT. On the stock exchange silver bull lion certificates were more active than
 for some time, and before noon G0,0O(
 ounces changed hands at 6S76 to 6S
 cents. These prices, although not quite l up to the top figures of yesterday, were
 nevertheless considerably above the | quotations for long time past. The more active demand for these cer- | tificates Is accounted for by the fact
 that the Mercantile Safe Deposit com. l pany now holds only 36,ll0 ounces of silver, against which tbirty-eix certifi- cates are outstanding. These holdings
 have gradually been running down oi
 late. until they are at the lowest point on record.
 The strength of silver iu this market
 IS due not only to an increased demand
 both for shipment abroad and for local manufacturers, but also to unusually l small receipts from smelters. Bulllod brokers now report that the | stocks of silver are exceedingly low and | as inquiry IS continually growing, still bigher prices for the white metal are generally expected.
 THE SILVER RISE WILL AFFECT SECURE TIES.
 NEW YORK, Oct. 1.-The upward ten dency of the market for silver is attract ing cloee attention both here and in Europe. The headquarters of silver is ln London, but its price, among other influences, has distinct bearing upon the securities of several of our railway system6, as well as those of Mexican lines, and the rise in silver, is continued, would affect the last mentioned proper ties ia three separate w6ys. First, in their gross earnings, us the predominant industry in Mexico Is the mining of silver, which has been con- tinued despite the falling in price, and would naturally be stimulated by en increase in it's values. This would of course mean an increase in the earn ings of the road which traverses the mining districts.
 Second-Tbe roads would be bene- fitted by a reduction in their operating expenses of about one-third, which are paid in gold.
 Third-The high price for silver in- crea 3es the capacity of roads to meet their fixed charges, which are payable in gold.
 As an illustration it has been carefully estimated that if the Mexican Central railroad had received the same price m 1894 for silver as that obtained in 1893. Of AaErtt Of cfTrO O00 fc- 1GOf az actually shown. the road would have earned a substantial surplus above fixed charges Also that the Mexican Nation sl, with the same rate of exchange as existed in 1896, would have earned in 1894 full interest on 10th prior lien and "A" bonds.
 In the United States the Rocky Noun tain roads would be favorably affected by further appreciation Tn the price of the white metal and more particularly people who are interested in the rehabl- iiation of the Union Pacific system. It vii be rememtere that after caring tie crisis in 1890 the Union Pacific difficult ties were adjusted under the admins tration of J. Peripont Morgan by the issue of large collaterll trust For three years following that time until the silver crisis in 1893 the property re- fiected steadily improving condition, with the result that securities advanced so that large amount of the collateral trust notes were retired, when the silver collapse occurred the road went into the hands of receivers, although no charge of Irregularities or Incompetency was brought against the management. It was simply a case of lost earning power due to the fact that the sustaining in- dustry of the origin through which Q large portion of road traversed had been pRralyzed.