The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1897-08-09
II WILL NOT HURT MEXICO
The Fall in Price of Silver VIII
Be q Benefit.
A MONOPOLY OF MINING IT
The Southern Republic Expects stim-
uiation OF All Native Industries and
an Influx Of Capital No Perman-
ent Loss From the Fall

Sc. Louis Aug. s.-A special 20 the
Globe-Democrat from the City Of Mex
leo says: The rapid decline In the
price OF silver has caused much appre-
hension in governmental circles. The
possible effects upon Mexico are being
generally discussed and much specu-
lation is InduIged In as to the point Of
exchange rates may reach. Yesterday
the premium on gold was 2G,s u
12sA.
Lionel G.. Garden. the British consul.
who has resided In this country for
many years and VINO has an interna-
tiOnal reputation for the many arti-
cles he has written on the silver ques-
ton. In an interview on the subject
says.
My opinion Is that the price of sill
yer Is entirely governed by the law o&
supply and demand. India. In ordi-
nary circumstances. takes q large pro-
portion OF the surplus production OF
the worlds silver. and It Is only nat
ural that the silver market should be
affected by the present poverty-strick-
en- condition of India and the conse-
quent fall OF the price OF silver. The
present low price Of silver will only
continue as long as the present condi-
ton OF affairs In India does.
Moreover. "A point must be reached
II silver continues to fall, sooner or
later. at which u will be found impos-
sibIe TO make silver profitable in gold
standard countries. Therefore. the
supply. when that point Is reached.
viii become much restricted and prices
consequently will regain something
and take on q normal level.
The effect OF the present fall will
uff ftnulaf.. h. .rux1urf kau af 11Ix<1r fnr
export and therefore will be benefit
tn Mexico to n far. more considerable
extent than the prejudice that may
result to the government and railway
companies on account Of the price of
wages here. but there IL no reason to
anticipate this. as long before such .
point could be reached the production
OF silver would have ceased TO be pos
sible In all countries where wages are
paid in gold. Al the present rate of
exchange. higher prices may have To
be- paid for interest abroad. The ar
guments 1 made TO the government .
few years ago as 20 results that might
happen 10 Mexico. owing to fall In
silver. still hold good. with this addi-
tLon. that ~ might be serious to the
country II silver fell 40 far TO effect an
i2S per cent premium"
| RI. G.. Walters. manager OF the Banco
de L0ndres. the largest banking g.
tablishment in this republic. said he
did not believe the present fall In all
yer would affect Mexico. The loss oc-
curing Ia the government. even at the
present rate of exchange. really
amounted to very little. he said. and
the government could easily stand It.
He believed II silver sold much lower.
the republic would soon have q mo-
nopoly 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. IL might have some per-
manent effect on certain CLASSES Of for
| eign merchandise. but IL would cer-
tninly stimulate all native industries
| and would tend To attract capital Tho
railways will find q tremendous In
| crease In local traffic. which viii even
tually offset their loss on foreign ex-
| change. | see no reason to anticipate
any permanent loss by the fall In sill
yer, rather the opposite. said the
banker in conclusion.
II. II. Nickerson. general manager OF
the Central railway. the largest rail-
way corporation In the republic. re-
fused tn talk on silver. He said. how
ever. that at present the road was
earning on a silver basis and purchAs-
ing most OF its supplies on gold
basis, and the result was. most oetrt>
mental to the interests OF the road-