The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-08-09

st. Louis. Mo-, Aug. S.-A special to
the Globe-Democrat from the City of
Mexico says: The rapid decline in the
price of silver has caused much ap-
prehension in, the governmental cir
cles. The possible effects upon Mexico
are being generally discussed and much
SPECULATION is INDUCED in as to the
point exchange rates may reach Yes
terday the Drepium on gold was 1861
to 1861.
Lionel G. Garden. the British consul.
who has resided in this capital for
many years. and who has an interna-
tional reputation for the many articles
he has written on the silver question,
in an interview on the subject, says
Ny opinion is that the price of sill
yer is entirely governed by the law of
supply and demand India. in ordi-
nary circumstances, takes a large pro-
portion of the surplus production of
the worlds silver, and it is only natural
that the silver market should be af-
fected by the present poverty-stricken
condition of India and the consequent
fall of the price OF silver. The present
low price of silver will only continue as
in india does.
Moreover, a point must be reached,
if silver continues to fall. sooner or
later, at which it will be found i'm
possible to make silver profitable in
countries where the gold standard is
in use. Therefore, the supply, when
that point is reached. viii become
much restricted and prices conse-
quently will regain something and take
on d normal level
THE effect of the present fall will
stimulate the production OF silver for
export and, therefore. will be a benefit
to Mexico to a far more considerable
extent than the prejudice that may re-
suit to the government and railway
companies on account of the price of
wages here, but I have no reasons to
anticipate this, as long before such
point could be reached the production
of silver would have ceased to be posi-
BILE in all countries where wages are
paid in gold. At the present rate of
exchange, higher prices may have to
be paid for interest abroad. The argu-
ments I made to my government few
years ago as TO results that might
happen TO Mexico, owing to fall in
silver, still hold good, with this addi-
ton, that it might be serious to this
country if silver fell SO far as TO effect
12S per cent premium
H. c. Walters, manager of the Banco
de Londres, the largest banking estab-
lishment in this republic. said he did
not believe the present fall in silver
would affect Mexico. The loss occurring
to the government even at the present
rate of exchange, really amounted TO
very little, he said, and the govern
men. could easily stand it. He be- /
lieved that if silver sold much lower. !
the republic would soon have a mon |
Opoly of mining it, and countries like
he United States, Australia. etc. would |
suffer the most. He believed the fall |
would only temporarily affect trade |
here. 1t might have some permanent |
effect on certain classes of foreign !
but it would certainly |
stimulate all native industries and (
would tend to attract capital. The rail- I
ways will find a tremendous increase in +
ocal traffic, which will eventually Off /
set their loss on foreign exchange"
4 see no reason to anticipate any
loss by the fall in silver.
-ather the opposite" said the banker
n conclusion.