Tonopah bonanza. [volume] (Butler City [i.e. Butler], Nev.) 1901-1909, 1903-11-14
GUGGENHEIM
GIVES OPINION
Approves Report OF U. S.
Commission
Relieves That Silver Ratio OF 81 To |
Would Benefit All Parties
Interested.

In Salt Lake CITY, Daniel Guggen
helm recently gave an interview
regarding silver, which was published
in full in the Mining Record of Den.
YER Mr.. Guggenheim has applied
himself assiduously for years to the
establishment of a permanent ratio
of value between gold and silver, and
his opinion of the report OF the United
States commission, which has been
handling the international phase oil
the question, is therefore the ex.
preston Of an expert. Epitomized,
it is as follows
The great effort is to regulate the
production of silver. A ratio might
be fixed which would advance the
price of silver to 81 an ounce. but
that would result in a tremendous
production and the price could not be
maintained. The solution is price
based upon the actual value of silver
upon the legitimate demand for it.
both as a money and a metal. Such
a price will not beget overproducton,
and consequently such a price for the
metal can be maintained. Is it not
better for the owner of a silver mine
TO have ratio that would be perma-
nent than one out of which a great
deal OF money could be made in a
short time, but which cannot last, be-
cause of the overproduction it would
bring about? The ratio OF 80 to |
would not cause an overproduction,
and yet it will enable some mines now
idle to operate proitably. An ad-
vantage that will accrue to mine
owners is that they will be able before
they open to estimate just what they
will get for their silver They can
figure also just how much their gold
will bring, and with the price OF these
two metals immutable the mine owner
can get pretty close estimate of
just what the operation Of his mines
will yield.
With fixed ratio there will be
greater demand for silver. There is
always staple demand for an article
whose actual value is known, The
nations, | presume, when they adopt
this ratio, will enter into an agree.
ment to stop buying when the demand
sends the metal beyond the price
fixed by ratio There will doubtless
be an international understanding
which will prevent the minis of the
nations being competitors against
each other. Thus, when France
needs a certain amount Of silver to
COIN the other nations will be advised
and will arrange matters in such q
way that there shall be no extraor.
binary demands TO meet. This will
insure steady demand for the metal
and will eliminate the element of un.
certainty, 1t will have tendency
to make mining more industrial in its
character and not so much a specu-
lation.
Mexico is not quite satisfied with
the ratio. Mexican tinanciers thought
that 30 to | would be basis which |
could be supported by concerted
action, but il the other nations are
insistent upon the ratio of 81 to |,
as it seems from the commissions re.
port they are, Mexico will yield to
their decision.
1t is difficult to say what nation
will be benefited most by a fixed |
ratio. China ought to profit NOR
ally and industrially more than any
oil the other nations, for her undevel-
oped resources are tremendous and
industries always follow trade. The
United States, Germany and Eng
land are all competitors for oriental
trade and it seems that this country
has the best of that contest. Taken
all in all, a fixed ratio will be a good
'hing for everyone concerned
The addition being built to the
Merchants Cafe will place the dining