The herald., 1897-08-07

DECLINE
Makes Mining Men Feel
Anxious
MINT DIRECTOR Mr.. PRESTON
SAYS LIGHT DEMAND TENDS TO
LOW PRICES
MINT DIRECTOR Mr.. PRESTON
When the White Metal Is Hemone-
tized There Will Be ALI the
Demand Needed
Associated Press Special wire.

DENVER, Col, Aug. 6.-The effect Of
the decline in silver to SSH cents per
ounce, and the probable further fall to
as low as so cents, which seems to be
conceded by those in the best position
to judge, is the topic of conversation
greatly discouraged at the outlook for
silver mining in Colorado, the general
opinion seems to be that the decline OF
silver will have no very serious effect
upon the mines, because there is compar-
atively little silver now mined in the
state, except in connection with copper,
gold and lead. There is possibility
that some of the Aspen and Creede prop
critics will shut down, but outside OF
these there will be little change in the
situation.
Ex-Governor ]. B. Grant of the Omaha
and Grant smelter said: II am Of the
opinion that silver will continue to go
down until there is marked decrease
in the production in some parts OF the
world, and 1t remains to be seen which
of the silver producing countries Will
give way first. think it will have some
effect upon the development of Mexico.
and that no more railroads will be built
to the mines in that country. 1t will
have no serious effect upon the produc-
ton of lead, for have figured out that
with lead at $50 and silver at 551k, it 10
just about as profitable to the miner as
when lead was 1926 and silver g.,
Ex-senator N. P. Hill of the Boston
and Colorado smelter, thinks that the
decline will be seriously felt in many
quarters. "The aggregate loss will be
quite large" said he. Last year the
average price paid our company for sill
yer was 66.S6 cents per ounce, and the
difference between that price and to-
days quotations amounts to about $780,
900 in our production of last year. In
1891 the price was much higher and the
loss, compared with today'e prices, would
be nearly s250, ,0o0."
PRESTON's PROPHECY
WASHINGTON, August 6.-"The bull
lion value of the American silver dollars.
according to yesterdays market price
of silver, is just 4Se cents" said Mr..
Preston, the director of the mint, to-
day.
"This makes the commercial ratio be-
tween silver and gold 366 to instead Of
16 to L." continued Mr.. Preston. I'm
order to make our silver dollar equal to
a gold dollar at this rate, it would have
to contain $50 fine grains of silver. II
the alloy were added, the total would be
953 grains
How do you account for the recent
decline in silver?" Mr.. Preston was
asked.
Simply the lack of demand for it. 1
see no future for silver whatever. Yes
terday's market quotations made 1t Sc
cents an ounce. 1t is my honest opinion
that within six months silver will fall
to 40 cents an ounce. There is no de-
mand for it anywhere. China is not
buying any. Japan is out of the bust
ness, and there seems to be no demand
for it in any country to any extent even
for use for subsidiary coinage. The out
put of gold is steadily increasing.
think that the worlds product for this
year will be about $240, 100000. The
United States will contribute about $780,
100000 to the supply. I base my pre-
dictions of an incresed worlds output
upon the fact that the supply has not
fallen off in any country, and now here
comes the Klondyke with still further
additions to the gold supply of the
world. The extent of the Klondyke out
put is problematical, depending largely
upon climatic conditions"
MINES CLOSED DOWN
SALT LAKE, Utah, Aug. GA spe-
cial to the Herald from Park City, Utah.
says: Superintendent Chambers of the
Ontario and Daily mines today received
a telegram from New York to close
down both mnies at once, owing to the
recent decline in silver. These are two
of the largest silver mines in the state
and give employment to about 700 men,
1t is claimed that these mines cannot
be worked with profit at the present
price of silver.
Found Himself