New-York tribune., 1897-08-09
MEXICO'S SILVER CRISIS.
ALARM IN BUSINESS AND POLITICAL
CIRCLES.
POSSIBLE EFFECTS OF THE RAPID FALL IN PRICE
OF THE WHITE METAL DISCUSSED BY
nANKEPs OTHERS.

POSSIBLE EFFECTS OF THE RAPID FALL. IN PRICE
OF THE WHITE METAL DISCUSSED BY
BANKERS AND OTHERS.
St. Louis Aug S-A dispatch TO The Globe
Democrat from the City Of Mexico, says: the
rapid decline in the price OF silver has caused
much apprehension in business and govern
mental circles. The possible effects upon Mexico
are being generally discussed. and much specu-
lation is INDUCED in as to the point exchange
rates may reach. Yesterday the premium on
gold 1861 to 1262t.
Lionel G.. Garden the British Consul, who was
lived in this capital for many years, and who
has an international 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 supply and demand. India In or
binary circumstances takes large proportion
OF the surplus production Of the worlds silver.
and 1t is only natural that the silver market
should be affected by the present poverty
stricken condition Of India and the consequent
falling of in demand for silver The present low
price OF silver will only continue so long as the
present condition Of affairs In India does. More
over a point must be reached, II silver continues
to fall sooner or later at which It will be found
/
where the gold standard is in use. Therefore
the supply when that point is reached will be-
come much restricted and prices consequently
will regain something like normal level.
The effect OF the present fall viii undoubt-
edly stimulate the production Of silver here for
export and therefore will be benefit to Mexico
| TO a far more considerable extent than the
prejudice that may result to Government and
! nf ~
wages here. but have no reason to anticipate
! this as long before such a point could he
reached the production of silver would have
| ceased TO be possible 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 arguments ! made to
my Government four years ago on the results
that might happen to Mexico owing to fall in
silver still hold good, with this addition that
II might be serious to this country If silver fell
so far as TO effect 12S per cent premium
| H. c. Waters manager Of the Banco de
Iondres the largest banking establishment In
this republic said that he did not believe the
| nresent fall in silver would affect Mexico. The
! loss occurring to the Government, even at the
present rate Of exchange. really amounted 10
little he said and the Government could easily
stand it, He believed that If silver sold much
| lower the republic would soon have mo-
nopoly Of mining it. and countries like the
United States, Australia. ETC., would suner the
most He believed the fall would only tempo
rariIy affect trade here. 1t might have some
| permanent effect on certain classes OF foreign
| merchandise. but IL would certainly stimulate
| all native industries and would tend to attract
capital. The railways will find tremendous
increase in local traffic, which VIII eventuall!
| offset their loss foreign exchange.
II see no reason to anticipate any permanent
! loss to Mexico by the fall in silver; rather the
opposite" said the banker in conclusion
H. r. Nickerson. general manager OF the Cen
tral Railway the largest railway corporation
doing business in the republic refused to talk
on silver generally He said, however, that a.
present the road earning on silver basi:
| and purchasing most Of its supplies on goic
| basis and the result was most detrimental tt
| the interests Of the read.