The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1897-08-12
THE DECLINE IN SILVER
PROMINENT MEN IN CITY OF MEN,
co INTERVIEWED As TO THE
CAUSE AND EFFECT.
CONDITIONS IN INDIA RESPONSIBLE
In the Opinion of the British Consul
the Price Is Largely Regulated by
the Prosperity of Indin-Other
Important Interviews.

ST. Louis. Aug. S.--A special to the
leo says: The rapid decline in the price
of silver has caused much apprehension
in business and governmental circles.
The possible effects upon Mexico are be-
ing generally discussed, and much spec
uation is INDUCED in as to the per cent
exchange rates may reach. Yesterday :
premium ON gold was 126 ID to 126 81.
Lionel &. Garden. the British consul.
who has resided in this capital for many
years. and has an international repnta-
ton for the many articles he has writ
ten on the silver question. in an inter
view on the question. says:
MY opinion is that the silver decline
is governed by the law of supply and
demand. India in ordinary circum-
stances takes large proportion of the
surplus production of the worlds sill
yer. and it is only natural that the sill
yer market should he affected by the
present poverty stricken condition of In
dia and the consequent fall i'm the de-
mand for silver. The present low price
of silver will only continue MS long MS
the present condition of affairs in India
does. Moreover point must he
reached. if silver continues to fall. soon
er or later ut which it will he found i'm
IDSSlHlt W llllllt silver Ill
countries where the gold standard is in
use. Therefore the supply. when that
point is reached. will become much re-
stricted and prices consequently will re-
gain something like Il normal level.
The effect of the present fall will nm
doubtedly stimulate the production of
silver here for export. and therefore will
he of benefit to Mexico far more cousid-
erably than the profit that may result
to the government and railway compa-
MES on account of the price of wages
here. but ] have no reason 10 anticipate
this. rs long before such point could
he reached the production of silver
would have ceased to he profitable in
all countries where wages are paid in
gold. At the present rate of exchange
higher prices may have to he paid for
interest abroad. The arguments |
made to my government four years ago
on the result that might happen to Mex
leo owing to Il fall in silver still holds
good. with this addition. that it might
he serious To this country If silver fell
So far MS to effect rs per cent
premium"
III. G.. Waters. manager of the Rauc6
de Londres. the largest banking eStah-
lishment in this republic. said that he
did not believe the present fall in sill
Yer would effect Mexico. The loss 10
the government. even ut the present
rate of exchange. really amounted 20
very little. he said. and the govern
ment can easily stand it. He believed
that if silver sold much lower. the r.
public would soon have n monoDuly II
mining it. and countries like the United
states. etc. would suffer the most He
believed the fan would only temporarily
affect trade here. 1t might have some
permanent effect on certain Glasses Of
foreign merchandise. hut it would ceT-
tainly stimulate all industries and would
tend to attract capital: the railways will
find Il tremendous increase In local
traftic. which will eventually offset their
loss on foreign exchange.
II see no reason To anticipate any per
manent loss 10y the fall in silver" said
the banker. in conclusion.
II. Il. Nickerson. general manager of
the Central Railway. the largest rail-
way corporation doing business in the
republic. refused to talk on the subject.
lie said, however that ut present the
road was earning on silver basis and
purchasing its supplies on a gold basis.
ana the result was most detrimental 10
the interests of the road.