New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-10-30
WHY SILVER is HIGH

1t has been suggested that the recent advance
of silver was due to speculative accumulations
in expectation of Bryan's election and the I'M
limited coinage of the white metal at the ratio
of 10 to 1. Nothing could possibly be more alb
surd In 1896 when there was some real fear of
Popullsttc success, conservative people boarded
gold' and there was reason for such action, as
IN the event of victory for the free silver can
dldate gold would undoubtedly have been at
premium In fact, the yellow metal commanded
a premium of one-quarter to three-eighths Of 1
per cent at NewYork bullion brokers' offices Just
before the election, owing to unusually large
applications Subsequent statements of the gold
movement showed that while there were net
exports during the first six months of 1897, the
actual amount in the Treasury increased more
than the domestic production would explain.
This could only be accomplished by the return
to circulation of coin that had been stored away
by men who did not rely onfthe wisdom of the
American people. If there was any real alarm
regarding the result on November gold would
be taken instead of silver
But there is logical reason for the present
nigh price of silver, in no way associated with
the political situation. 1t is a question of SUD
ply and demand, as in all other products Re-
cent developments in China have brought out
remarkable movement in that direction and ex-
ports from LONDON from January l to October
IL are valued at f1,763466 exceeding the ship
ments to that country in each of the preceding
hve full years. India has also purchased more
than in the full year 1893 or 1895. and f617. TS2
more than in the same part of last year
single shipment of f1,0OOOOO in gold was made
from India recently TO pay for the white metal.
That country has bought over thirty million
ounces this year for coinage and the consump-
ton for ornaments has been very heavy not
withstanding the famine With steadily i'm
proving conditions and increasing trade il is ex-
pected that the demand will still further expand.
Exports from London to the Straits for the
year thus far are valued at f6S3. 316 against
f226,5OS to date in 1899 and f4S5.1O i'm the full
year 1893. Accelerated buying by these three
countries has pushed the bullion price above 80
pence for the first time in four years. while the
local market responds with quotations at 65
cents. and exports from this city since January
/ are valued at $4O520,42O Direct shipments to
China from San Francisco have also reached an
unusual amount this year
Prior to 1898 the worlds production Of silver
had increased by millions of ounces annually
jumping from 100000 ounces in 1873 TO
100000 ounces in 1888 and 165, 900. 900 ounces
in 1898. Since 1898 the production has re-
manned practically stationary. These figures of
steady production with increasing demand in
dictate natural explanation for the present
range of prices and Mr.. Bryan may be exoner-
ated from any responsibility. There is also the
further consideration that gold production has
been increasing enormously-from an average
of about 100000 ounces annually for forty
years prior to 1890 to nearly 100000 ounces
in 1896 and over 100000 ounces in 1899. As
gold Is no more exempt than silver or any other
product from the action of the law of supply
and demand, nothing is more likely than that
gold itself is falling in value, which would help
to sustain if not actually elevate the price OF
silver.