The record-union., 1897-08-09
HAS CAUSED MUCH
APPREHENSION.
Rapid Decline of Silver Troubling
Government Circles.
Possible Effects on Mexico Being Gen.
orally Discussed.
Consul Garden Thinks Present Low
Prices Will Continue Only as
Long as the Present Condition
in India Does-Banker Walters
Does Not Think the Fall of Sill
yer Will Affect Mexico.

ST. LOUIS, 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 apprehension in the
governmental circles. The possible eff
fects upon Mexico are being generally
discussed and much speculation is in
dulged in as to the point exchange
rates may reach. Yesterday the pre-
MUM in gold was 1862 to 126a.
Lionel G. Garden, the British Con-
sui, 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:
MY opinion is that the price of silver
is entirely governed by the law of sup
ply and demand India, under 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 affect
ed by the present poverty stricken con-
dition of India and the consequent fall
of the price of silver. The present low
price will only continue as long as the
present condition of affairs in India
does.
Moreover, a point must be reached
if silver continues to fall, sooner later,
at which it will be found Impossible to
make silver profitable in countries
where the goh standard is in use.
Therefore, the supply, when that point
is reached will become much restricted
and prices consequently will regain
something and take on normal level.
THE effect of the present fall will
stimulate the production of silver for
export and therefore Will be 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 a
point could be reached the production
of silver would have ceased to be posi-
bic in all countries where wages are
paid in gold. AT the present rate of ex-
change, higher prices may have to be
paid for interest abroad. The argu-
ments 1 made to my Government a
few years ago as to results that might
happen to Mexico, owing to fall in
silver, still hold good, with these addi-
tions, 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 Hondres, the largest banking estab-
lishment in this republic, said he did
not believe the present fall in silver
would affect Mexico. The loss occur
ring to the Government over the pres
ent rate of exchange, really amounted
to very little, he said, and the Govern
ment could easily stand it, He be-
lieved that if silver sold much lower,
the republic would soon have a monop-
oily of mining it and countries like the
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 mer-
chandise, but it would certainly stimu-
late all native industries and would
tend to attract capital. The railways
will find tremendous increase in local
traffic, which will eventually offset their
loss on foreign exchange.
'I see no reason to anticipate any
permanent loss by the fall in silver,
rather the opposite said the banker
in conclusion.
H. r. Nickerson, General Manager of
the Central Railway, the largest rail-
way corporation doing business in the
republic, refused to talk on silver gen
orally He said, however, that at pres
ent the road was earning on a silver
basis and purchasing most of it's sup
plies on gold basis and the result was
most detrimental to the interests Of
+ he