Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-08-06
Commercial Rate Between Silver and
Gold Now 36.6 to l.
TALK WITH THEDIRECTOROF TEE mint
He Sees Absolutely No Future De-
mand for Silver.
THE NATIONS WANT GOLD

The bullion value of the American sill
ver dollar. according to yesterdays market
IT.ce of silver is just ~ 6-1O cents said
Mr Preston. the director of the mint, 10 a
SIR reporter today.
This makes the commercial ratio be-
tween silver and gold 1866 to l instead of
IL to L.. continued Mr.. Preston. I'm order
= make our silver dollar equal to a gold
collar at this rate it would have TO con-
tain 80 fine grains of silver. If the alloy
Were added the total would be 9s; grains
The silver dollar of today actually con-
tSins :iI4 Ii fine grains, and with the alloy
AL 1-2 grains
Between February 2S, 1878, and Novem-
her l, 1Ssf,, under the Bland-Allison and
the Sherman acts. the United States gov
ernment has purchased 459,9i61 101 fine
ounces of silver. for which We paid S464..
21o26i. AT yesterdays market price this
silver would be worth $3.50 GIG II ii, and II
it were sold at the present market price
the loss to the government on the same
would be S24,.,S4 15..
Effect of Silver Purchases.
1T would seem that it would have been
good business play for the government
to have melted down its silver dollars long
ago ard sold them for bullion, pocketing
the difference between the then market
price and the existing rates.
The United States would have been
great deal better off today if IL had never
gone into the purchase of silver. If we lad
only the one standard, the gold standard,
money would be cheaper and more plenti-
full.
"Of course. while We are practically on
the single standard. at the same time We
are nIdinta aiming Ire parity between silver
and gold and it is the fear of further silver
legislation that is the disturbing element
r.,
standard she provided for silver coinage at
the ratio of thirty-two and one-third 10
one. and many were inclined to think 1t
was dangerous experiment, but ii would
mot seem so, from the fact that silver has
lsince 6eclired to the point where the ratio
lis th:rtysix and siX-tenths to one That is
Zone ounce of gold will buy thirty-six and
isix-tenths ounces of silver
4 How do you account for the recent de-
tcline in silver?' Mr.. Preston was asked
No Future for Silver
Simply the lack of demand for it. 1 see
no future for silver whatever Yesterdays
market quotations made it fifty-six cents
an ounce. 1t is my honest opinion that
within six months silver will fall to forty
cents an ounce. There is no demand for it
anywhere. China is not buying any Japan
Is out of business, and there seems to be
no demand for it in any country to any ex-
tent even for use subsidiary coinage
III IS true that in the bazaars of India it is
Traded in as merchandise, but the famine
and nard times in that country have re-
duced the demand to a minimum
The United States has done more to
Keep up the price of silver than any other
country IN the world, but we can't keep Il
up any longer. The tendency has been
steadily downward since the passage of the
sherman act of 1890. OF course, there have
Deeh temporary fluctuations. in which the
price mas risen. for time. but the down.
ward movement soon set in again. Mexico
felt the fall in silver several weeks ago
when the rates of London exchange went
up She has to settle in London on a gold
Dasis and pay in her silver at the current
rate OF exchange.
Other Nations Want the Gold StnnL
ard.
Outside of the United States. all nations
want to go to the gold standard. Mexico
would do it today. if she could, and the
time Will come when Mexico will tall into
line with the rest of the world This talk
OF there not being enough gold for the
worlds use is folly. The output of gold is
steadily Increasing
i think that the worlds product for this
year will be about s24O.00O,O0O. The United
States will contribute about s6O,OOo,OOO to
the supply. / base my predictions on an
Increased worlds output upon the fact
that the supply has not fallen off in any
country. ON the contrary, it has steadily
Increased. The reports from Australia.
from South Africa and from Mexico indi-
cate this. OF course. we are familiar with
the Increase in the United States
Here comes the klondike now with still
ftrthe.' additions to the gold supply of the
world The extent of the Klondike's out
pat Is problematical, depending largely
upon china tic conditions 1t will take a
longer time for the Klondike to swell the
tCtdi. because there are only about 12D
days in the year when gold can be washed.
II believe this iDrrea ;s,
having its effect upon the decline in silver,
although as 1 said before, the ruling cause
IL the lack of demand in the markets of
the world for silver"