The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-08-09
THE DECLINE IN SILVER
MEXICO BELIEVES SHE WILL BE
BENEFITED ULTIMATELY.
Expects to Have Monopoly of the
Mining Business en- Account OF
Wages Paid on IA Silver Basis.

CITY OF MEXICO, Aug S.-The rapid
decline in the price of silver has caused
much apprehension in business and gov.
ernmental circles The possible effects on
Mexico are being generally discussed and
much speculation is indulged in as to the
point exchange rates may reach. Yesterday
the premium on gold was 1854 to 1861
Lionel G. Garden the British consul, who
has resided in this capital for many years
and who has an international reputation
for the many articles he has written on
the silver question, in an interview on the
subject says:
My opinion is that the price of silver
is entirely governed by the law of supply
and demand. India in ordinary crcum-
stances takes a large proportion of the
surplus production of the worlds silver and
1t is only natural that the silver market
should be affected by the present poverty
stricken condition OF India and the con-
sequent fall off in the demand for silver
The present low price of silver will only
continue as long as the present condition
of affairs in India does. Moreover, a point
must be reached, !f silver continues to fall,
sooner or later, at which Ii will be found
impossible to mine silver profitably in coun-
tries where the gold standard is in use.
reached, will become much restricted and
prices consequently will regain something
like & normal level.
THE effect OF the present fall will un-
doubtedly stimulate the production of sill
Yer here for export and therefore will be
benefit to Mexico to a far more consider
able extent than the prejudice that may re-
suit to the government and railway compa-
MES on account of the price of wages here
put put l nave have no reason to anticipate this as
the production of silver would have ceased
to be possible in all countries where wages
are, paid in gold At the present rate of
exchange, higher prices may have to be
paid for interest abroad. The arguments
made to my government four years ago on
the results that might happen to Mexico,
owing TO a fall in silver, still hold good,
with this addition, that IL might be serious
to this country if silver fell so far as to
effect l2S per cent. premium
II. G. Waters, manager of the Banco De
Londres, the largest bank establishment
in this republic. said that he did not be-
lieve the present fall in silver would af-
feet Mexico. The loss occurring to the gov
ernment, even at the present rate of ex-
change really amounted to very little, he
said. and the government could easily
stand it. He believed that if silver sold
much lower the republic would soon have
a monopoly Of mining 1t and countries like
the United States. Australia etc. would
suffer the most. He believed the fall would
only temporarily affect trade here. 1t
might have some permanent effect on GER
tain classes of foreign merchandise but it
would certainly stimulate all native indus
tries and would tend to attract capital The
railways will find a tremendous increase
I'm local traffic, which will eventually Offset
their loss on foreign exchange. Il see no
reason to anticipate any permanent loss
to Mexico by the fall in silver; rather the
opposite.
II. r. Nickeson, general manager of the
Central Railway, the largest railway cor
poration doing business in the republic
refused to talk on silver generally. He said
however that at present the road was
earning on a silver basis and purchasing
most of its supplies on a gold basis, and
the result was most detrimental to the in
terests of the road.