Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-08-07
BULLION VALJE OF AMERICAN SILL
YER DOLLARS Il 43.6 CENTS.
WHY SILVER HAS TUMBLEO.
MINT DIRECTOR PRESTON SAYS
THERE Is No DEMAND FOR 1T.
Sees No Future for 1t aud Predicts
That II VIII sell for 40 Cents an
Ounce Within Six Months
Views of Colorado
silver Man.

washington. Aug. 6.-''The bullion velue
Of the American silver dollar. according TO
Yesterdays market price of silver, is just
As cents" said Air. Preston. the director
Of the mint. to-day. This makes the COM
nercial ratio between silver and gold ob.o
u / instead Of IS TO !. In order 10 make
our silver dollar equal 10 a gold dollar at
this rate it would have TO contain 80 hne
grains Of silver. II the alloy were added
the total would be 9s3 grains"
How DO you account for the recent de-
cline in silver2" Mr.. Preston was asked.
Simply the lack Of demand for II.
see no future for silver whatever. Yes
terday's market quotations made it IS cents
an ounce. II is my honest opinion that
within six months silver Will fall 10 20
cents an ounce. There Is no demand for
II anywhere. China is not buying any.
Japan is out Of business, and there seems
10 be no demand for it in any country to
any extent even for use as subsidiary coin
age. II is tr1Ie that in the bazars Of India
il is traded in as merchandise. but the
famine and hard times in that country
have reduced the demand TO minimum.
The output of gold Is steadily incFeas-
ing. l think that the worlds product for
this year viii be about &24O,00O80. The
United States will contribute about SAeV-
600 to the supply. ! base-my predictions OF
an increased worlds output upon the fact
that the supply has not fallen of in any
country. Here comes the klondike now
with stsl further additions tU5the gold sup
ply Of the world. The extent Of the i(lon-
p dike's output is problema.:caL GePcIAing
largely upon climate conditions.
Denver. Aug. G.-The -efIect Of the. decline
in silver TO 55l9 cents per ounce and the
probable further fan 20 as low as 20 cents
Which seems TO be conceded by those in
the best position to judge,sis current tepic
of conversation among mining mepS snd
while some are greatly discouraged at the
outlook for mining in Colorado.~the gen
eral opinion seems 10 he that the decline OF
silver viii have no very serious eject upon
the mines, because there IS comparatively
little silver now mined in the state. except
in connection with copper. gold and lead.
There is a possibility that some OF the As
pen and Creede properties viii shpt down,
but outside Of these there will be little
change in the situation. Ex-Governor J. Il.
Grant. Of the Omaha & Grant smelter,
said. --.------.----- --..-~
4 am Of the opinion that silver will
continue 70 90 dov-a s5nff1s there Is
marked decrease in the productionifn some
parts Of The world, ata il treinains te be
seen which -of the. sfveE IlrodpcipE eoun--
tries win give way Frstss II tfie present
with silver at Ssh cents. it viii 80 lower
until the supply and demand are nearer
together. or course there will come
time when it will stop falling. but i do
not think that il will come until there is d
very marked decrease in production, unless
in the meantime silver should be remone-
tized.
'One thing will result from the decline
no more new silver enterprises VIII be
started. and there will be an increased
activity I'm the search for gold. | also think
it will have some effect upon the deyelop-
me- nj of Mexico. and that no more railroads
viii be built TO the mines of that country.
j. viii have no serious effect upon theapro-
dGction of lead. for | have figured out that
with lad at $3.50 and silver at 55i2 cents, il
just about as profitable 10 the miueT as
Nher lead was % and silver g. centf.
Ex-senator y. p. HiIl. of the Boston and
Colorado smelter. thinks that the decline
will be seriously felt In some quarters.
THE aggregate will be quite large, aid
he. Last year the average price paid our
company for silver was G6S6 cents peTfOunce
and the difference betwcCTi that prices and
-to-day's quotations amounts to about Sl20.-
on in our production of laSt year. IN 1892
the price was much higher. and the loss.
compared with to-day's prices, would be
nearly $50 600