Arizona republican., 1903-09-25
The Declining Production Of Silver.

The Declining Production Of Silver.
 It seems surprising that, considering the increased demand for silver as the result of purchases of the metal for coinage purposes by foreign countries and by the United States for the Phil ippines, there has apparently been such d comparatively small increase in the do- mestic production of silver in recent years. as indicated by the statistics of exports of the metal. It is pointed out by the Financier that in 1900 the ship ments hence of silver bullion were val ued at s5S, ,756, ,913 and in the following calendar year they fell to $5l .545, ,694. and in 1902 to S45, 3S5.19 For seven months of the current year the exports were only S18,545, ,4S2, an average of but $2, ,S00,000 per month. making it proba ble that the exports for 1903 will not ex- shipments this year have been the smallest for the past five years at least. notwithstanding the gradually increas- ing foreign demand and the consequent
 
 has been no such domestic consumption of silver, until within the past six months, as would indicate a home ab- sorption of the product; hence it must be assumed that the decreased exports have been due to deficient supplies.
 II is suggested by the Financier that one reason for the decreased production is the fact that there have been few new discoveries of the metal and also that the processes of mining and refin- ing have not been improved, and con- sequently the profits of production have not increased correspondingly with the advance in the price of silver and this surmise is correct. But, as everybody in the west is aware, the main reason for the great reduction in production has been the abandonment of numerous silver mines of low grade Our New York contemporary goes on to say that put is the fact that with the same amount of labor, owing to improved methods of refining, more satisfactory and more certain results can be obtain ed from gold than from silver mining and prospectOrs, therefore. devote more attention to discoveries of gold than to those of silver fields. The absolute cer- tainty that an ounce of gold has q ready market and stable value and that facilities for the conversion of the bull n fn extended by the governments of coun- tires where gold is mined, while reali- zation upon silver bullion is difficult, owing to its fiuctuating value will go ment of the gold mining industry and the apparent decadence Of that of silver production.
 It is noteworthy that this depression in the silver mining industry dates from the year 1900 when the effective maintenance of the gold standard in this country was provided for by law. Previously there had been some incen- tive to the production of silver arising from the steady demand for the metal for coinage, because of the provisions of the act of 1878. Under the operation of the law of 1900. however the use of silver for coinage purposes was reduced to minimum while that of gold was increased owing to the demand for it for currency.
 Unless there shall be some radical change in monetary conditions in China. such as is proposed to be effect ed through the efforts of the commits sion which is seeking to establish a fix ed ratio between gold and silver, it would seem likely that as a consequence of commercial development in the Orient the demands of China for silver for the settlement of her international obligations will result in a material in- crease in the market value of silver. The London Statist notes the fact that there has latterly been an increase de- mand for this metal as the result of the inflow in the far east, the expenditures of the powers necessitated by the aug mented naval forces which are main tained for the purpose of observation in the orient being made in silver which is the only available currency Should these conditions continue to prevail the result may be such an ap- preciation of the value of silver, be- cause of a demand in excess of the supply, as to bring about the accom- plishment of the desired establishment of a fixed commercial ratio between gold and silver and to facilitate the adoption of measures for the mainten- ance of such ratio.
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