New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-08-07

iTEiDE Great Britain TO tp-oitlolc VAN 'Ni'N'
,;oyernments IN the movement now on foot 10
.acure stable par exchange for gold and silver.
4 GLOOMY OUTLOOK FOR SILVER
,rREc~roR PRESTON PREDICTS A DECLINE TO ~
cENTs AN OUNCE WITHIN SIX MONTHS.
Washington. Aug G (SpeciaD-One Of the most
thorough and intelligent students Of the silver
question in the United States or elsewhere is
Director Preston Of the United States Mint
Bureau. His official connection with that
branch Of the Treasury Department has covered
period Of many years, and his Opinions on all
subjects relating to the precious metals and
their use as money entitled to much weight
At least a year ago Mr. Preston, in conversa-
ton with a Tribune correspondent. predicted
the steady decline in the price Of silver which
has taken place
The bullion value Of the American silver dol
lar. according to yesterdays market price OF sill
ver is just 43 $40 cents" said Mr.. Preston to-
day. This makes the commercial ratio between
silver and gold 366 to ! instead Of 16 to l. In
order TO make our silver dollar equal to a gold
dollar at this rate 1t would have to contain
$50 fine grains of silver. If the alloy were added
the total would be 953 grains. The silver dollar
OF to-day actually contains 37414 fine grains. and
with the alloy 412h grains
A COSTLY AFFAIR FOR THE GOVERNMENT.
Between February %. 1873. and November
J. 1898 under the Bland-Allison and the Sher-
man acts. the United States Government has
purchased 1896 7O1 fine ounces Of silver. for
which we paid S464 30 263. At yesterdays
market price this silver would be worth S259.-
626 III and If II sold at the present mar
ket price the loss to the Government on the same
would be 1904 .5S4 149 1t would seem that It
would have been a good business policy for the
Government to have melted down its silver dol
lars long ago and sold them for bullion, pocket
Ing the difference between the then market
price and the existing rates The United States
would have been a great deal better off to-day
II II had never gone into the purchase Of silver.
II we had only the standard-the gold stand
ard-money would be cheaper and more plenti-
full
"Of course while we are practically on the
single standard at the same time are main
tanning the parity between silver and gold. and
1t is the fear Of further silver legislation that is
the disturbing element When Japan recently
adopted the gold standard she provided for
silver coinage at the ratio OF 30 1-3 to l. and
many were inclined 10 think 1t dangerous
experiment. but II would not seem So from the
fact that silver has since declined to the point
where the ratio Is SO 6 tn |. That is, an ounce
OF gold will buy 36.6 ounces Of silver"
How do you account for the recent decline
in silver
future for silver whatever Yesterdays market
quotations made IL So cents an ounce. 1t is my
honest opinion that within six months silver
VIII fall 10 40 cents an ounce There is no de-
mand for Il anywhere. China Is not buying
any. Japan Is out Of business. and there seems
10 be no demand for II in any country to any
extent. even for use subsidiary coinage 1t is
true that in the bazaars Of India 1t is traded In
as merchandise but the famine and hard times
in that country have reduced the demand to a
minimum. The United States has done more
l1av thA rarinD nf eilt-ar thar
country in the world. but can't keep II up
any longer. The tendency has been steadily
downward since the passage OF the Sherman
act Of 1890. OF course there have been tenn
porary fluctuations. in which the price has risen
for a time. but the downward movement soon
set in again. Mexico felt the fall in silver sew
change went up. She has to settle in London on
a gold basis and pay in her silver at the cur
rent rate OF exchange
PLENTIFUL SUPPLY OF GOLD.
Outside of the United States all nations
want to go to the gold standard. Mexico would
DO it to-day II she could and the time will come
when Mexico will fall into line with the rest of
the world This talk Of there not being enough
gold for the worlds is folly The output Of
gold is steadily increasing. think that the
worlds product for this year viii be about
$40 OO0OO0 The United States Will contribute
about $60O0000O to the supply. base my pre-
dctions of an increased worlds output upon the
fact that the supply has not fallen Off in any
country On the contrary, II has steadily In
creased. The reports from Australia, from
South Africa and from Mexico indicate this. OF
course. we are familiar with the increase In the
United States
Here comes the Clondyke now with still fur
ther additions to the gold supply OF the world
The extent OF the Clondyke's output is proDiem-
afical. depending largely upon cIniatIc cohoi-
uons. II will take long time for the CIondyKe
70 swell the total because there are ohiy apout
~ Gays In the year when soiu i cal, ' g. h.,,n1
u alilx,A tli. raA Onl