The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-08-09

ST LOUIS. Mo. Aug "a special 10
the Globe Democrat from the City OF
Mexico says. The rapid decline In the
price OF silver has caused much apprehen-
sion IN government circles The possible
effects upon Mexico are being generally
discussed and mich speculation Is In
duiged IN as 20 the point exchange rates
may reach Yesterday the premium on
gold was 49, TO iAsA
Lionel @. Garden. the British consul.
who has resided in this capital for many
years and who has an international repu-
tsticn fog the many articles he has writ
ten on tbs silver question. in an interview
on the subject. says:
Ny opinion IS that the price Of silver
Is entirely governed by the law of supply
and demand. India in ordinary circum-
stances, takes large proportion or the
surplus production Of the worlds silver.
and IL 10 only natural that the silver mar
ket should be- affected by the present
poverty-stricken condition of India and
the consequent fall Of the price OF silver.
The present low price will only continue
in India does.
Moreover, a point must be reached. If
silver continues TO fall. sooner or later. at
which IL will be found impossible 10 make
silver profitable In countries where the
gold standard Is in use. Therefore. the
supply. when that point is reached, Will
become much restricted and prices conse-
Quently will regain something and take
on a normal level.
The effect of the present fall viii slim
ulate the production of silver for export.
and therefore will be a benefit TO Mexico
TO . far more considerable extent than the
prejudice that may result to the govern
ment and railway companies on account
of the price of wages here, but have no
70 ia. n lief
such q point could be reached the pro-
duction of silver would have ceased to be
possible in all countries where wages are
paid in gold. AT the present rate of ex-
change, higher prices may have 10 De
paid fer interest abroad. The arguments
] made 10 my government few years
ago as TO the results that might happen
TO Mexico, owing 10 fall in silver. still
might be serious 10 this country II silver
fell So far as 10 effect Us per cent. pre-
mium.'
II. c. Walters. manager of the Banco de
Hondres. the largest banking establish
ment in this republic. said he did not be-
lieye the present fall In silver would affect
Mexico. The loss occurring TO the gov
ernnent even at the present rate of ex-
change, really amounted to very little, he
said, and the government could easily
stand 1t. He believed that il silver sold
much lower the republic would soon have
q monopoly Oh mining II, anu CouutifeS
like the United States. Australia. etc.
would suffer the most He believed the fall
would only temporarily affect trade here.
II might have some permanent effect on
certain classes of foreign merchandise.
but 1t would certainly stimulate all native
industries and would tend 10 attract cap
ital The railways will find tremendous
increase In local traffic, which will eventu-
ally Offset their loss on foreign exchange.
Il see no reason TO anticipate any perma-
nent loss BY the fall In silver. rather the
opposite. said the banker. in conclusion.
II. r. Nickerson. general manager of
the Central Railway. the largest railway
corporation doing business In the repno-
lie. refused 10 talk on silver generally. He
said, however, that at present the road
was earning on silver basis and pur-
chasing most OF It's supplies on gold
basis. and the result was most detrimental
to the interests, OF the road.