Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1897-08-09
MEXICO AND SILVER,
Englishman with IN international
Reputation on the Subjset
Gives His Views. :,
TROUBLE WITH THE WHITE METAL

IL Value DspsnAs % InAia, Aeesraine -
This Authority, But IT. Low Price WIN
Benefit the Land Of Dias-Proaustssa
Nay Reach TIE va.ishi,e Psins-0pin-
Ion Of . Hexicaa Banksr-Nee Ansaeipot-
Ing Any Psrmaneot Lesa
st. Louis. Aug. "a special to The
Globe-Democrat from City Of Mexico,
Mexico. says: The rapid decline In the
price Of silver has caused much an
al circles. The possible effects upon
Mexico are being generally discussed.
and much speculation 10 INDUCED in as
to the point exchange rates may reach.
Saturday the premiumon gold was 1161S
to 126x. Lionel G. Curden, the British
consul. who has resided In this capital
for many years, and who has an inter-
national reputation for the many ar
ticles he has written on the silver Ques-
ton. in an interview ON the subject
says: my opinion is that the price Of
silver Ii entirely governed by the law
Of supply and demand. India, in or
binary circumstances takes large pro.
portion Of the surplus production of the
worlds silver, and it il only natural
that the silver market should be af.
fected by the present poverty stricken
condition Of India and the consequent
fall OF in the demand for silver.
Price Dependent On india.
"Phe present low price Of silver will
only continue as long as the present
condition Of affairs In India does. More
ever, q point must be reached, If silver
continues to fall, sooner or later at
which it will be found impossible to
mine silver probably in countries where
the gold standard 10 in use. Therefore.
the supply. when that point IN reached,
will become much restricted, and prices
consequently will regain something like
q normal level. The effect Of the pres.
ent fall will undoubtedly stimulate the
production Of silver here for export,
and therefore will be q benefit to Mex
leo to a far more considerable extent
than the prejudice that may result to
the government and railway companies
on account Of the price Of wages here.
When It Would BE Serious to Mexico.
But I have no reason to anticipate
this, as long before such a point could be
reached the production Of silver would
have ceased to be possible In all cum
tries where wages are paid in gold. At
the present rate Of exchange higher
prices may have to be paid for interest
abroad. The arguments I made to my
government four years ago on the re-
suits that might happen to Mexico, ow-
ing to a fall il silver. stin hold good.
with this addition-that It might be
serious to this country IL silver fell so
far as to effect 12S per cent. premium"
Opinion OF . Mexican Banker.
H. c. Waters, manager Of the Banco
de Lecondres. the largest banking es-
tablishment in this republic, said that he
did not believe the present fall in silver
would affect Mexico The loss occurring
| to the government, even at the present
rate Of exchange, really amounts to
very little. he aaid, and the government
| could easily stand II. He believed that
IL silver sold much lower the republic
would soon have q monopoly Of mining
| 1t, and countries like the United States
Australia, ETC., would suffer the most.
He believed the fall would only temper
arily effect trade here. 1t might have
some permanent effect on certain classes
of foreign merchandise, but 1t would
certainly stimulate all native industries
and would tend to attract capital.
| Mexico Would Not Lose.
The railways would find . tremendous
increase in local trafnc, which would
eventually Offset their loss on foreign
exchange. II see no reason to antici-
pate 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.
trail railway. the largest corporation
in the republic. refused to talk on al-
yer generally. he said, however, that
at present the road was earning on g
silver basis and purchasing most q
its supplies on q gold basis and the re.
suit was most detrimental to the in.
| terests Of the road.