Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-08-09
THE SLUMP IN SILVER.
Mexican Authorities Seem to Think 1t
VIII Have No Disastrous
Effect on Mexico.

81 Louis. Aug. S-A special 10 the Globe
Democrat from the City Of Mexico says:
The rapid decline in the price Of silver has
caused much apprehension in business and
governmental circles. The possible effects
upon Mexico are being generally discussed,
and much speculation is INDUCED in as
to the point exchange rates may reach.
Yesterday the premium on gold was l2612
to 1858. ,
has resided 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
NV opinion is that the price of silver is
entirely governed by the law OF supply ana
demand India, in ordinary circumstances.
takes large proportion OF the surplus pro-
duction of the worlds silver, and II Is only
natural that the silver market should be
affected 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 long
as the present condition of affairs in India
does Moreover. point must be reached,
If silver continues to fall. sooner or later.
at which it will be found impossible 10 mine
silver profitably in countries where the gold
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. s..,.- -.. s,u will an
doubtedly stimulate the production OF Sill
ver for export. and, therefore VIII De
6cra6t to Mexico TO a far more consider
| able extent than the prejudice that may
! result to the government and railway
comnauies on account of the price of wages
here hut | have no reasons to anticipate
this as long before such point could be
reached the production Of silver would
| have ceased to be possible IN al countries
! where wages are paid in gold Al the
| prescnt rate of exchange. higher prices
| may have to be paid for interest abroad
| The arguments | made to my government
| four wears ago on the results that might
| haDpen to Mexico, owing to a iali IN sll-
| YER still hold good. with this addition, that
| it might be serious TO this country II silver
| fell so far as to cause l8 per cent prem
| iUm. ~, :,
| T,ondres the largest banking establish
| ment in this republic. said that he did not
| believe the present fall in silver would
| affect Mexico The loss occurring 10 the
| government, even at the present rate OF
| exchange really amounted 10 very little,
| he said and the government could easily
| stand it. He believed that II silver sold
| much lower, the republic would soon have
| a moncpoly of mining 1t, and countries
| like the United States, AuStralla, etc,
| would suffer the most. He beleved the
| fall would only temporarily anect trade
| here. -.-,,,. of,,,+ 80,
| certain classes of foreign merchandise, nut
| il would certainly stimulate an nttNe m
| justries and would tend to attract capital.
| The railways will ma a % %uenfIuous II,
| crease i'm local traffic, which VIII eventual
| " onset this loss on foreign exchange.
| 'sT see no reason to anticipate any per-
| manent loss by the fall IN sllVer' rather
| the opposite" said the banker IN con-
| CluSiQu,