Gilpin observer., 1903-11-05
T. ]. AL1HA1ER, PUBLISHER AND PROPRIETOR.
THURSDAY, NOVEMBER 5, 1903.
HOW MUCH FURTHER WILL
PRICE OF SILVER RISE?
Monetary Commission Found Europe Rea-
dy to Accept Ratio of 81 to Good
wins Suggestion to Arneri
can Congress.

All the staff correspondents of The
Post in the mining regions express great
satisfaction over the stimulus lent to the
mineral industry by the advanced prices
for silver. 1t is probable that the benefit
is most pronounced in Leadville, but in
every section where the white metal is
an important factor in production it has
enabled the operators to gain little
more profit fer their labor. 1t is as
sumed by many that the price will rise
to 60 cents per ounce, and that in the
fluctuations of the future it will not be
liable to fall below 60 cents. i think
this view rather hazardous to bank
upon. While it is true that the Guggen-
helms and the American Smelling and
Refining company are among the largest
producers of silver in the world, at this
time, and naturally disposed to keep the
price at high figure for the profits that
will accrue.to them, they cannot control
the situation at all times. Peculiar con-
ditiops unlike any that have influenced
the silver market during the past three
years have combined to send the price
of silver bullion up from Al cents to over
Ga cents per ounce within the last six
months. The Chinese market has had
something to do with this, but one of the
important factors was the purchase by
the United States for Philippine coinage
under 1.-The act of the last congress.
Again,i India has required more silver
than formerly, which necessitated heavy
purchases. But the limit has been
reached in the Philippines, and the India
demand is pretty well supplied; there
fore; it is not safe for our mines to count
upon a maintenance of the current price.
That it will drop is morally. certain, but
there is little danger of its falling below
80 cents. The last number of Judge
Goodwin's Weekly says the silver COM
missioners report that they found the
chief nations of Europe favorable to
their proposition, which has to reckon
and accept foreign exchange at ratio
of 80 Of silver to l Of gold. They do not
say it, but it is clear enough that had
they named % to they would have met
the same approval Goodwin then sug-
gests that now would be a good time for
the introduction of bill ir congress
fixing the ratio at, say % to for the
foreign exchange of the United States,
and including in it authority for the gov
ernment on such terms as might be Just
to loan silver standard and silver using
countries the money they need, and in
viting the nations to join in the meas
ure. The simple fact that the commits
soners sent by the United States, Mexi-
co and China were not rebutfed in Eu-
rope has caused silver as commodity to
advance to almost 30 to /. Such a mea-
sure as outlined above, to take effect
three months after the passage, would
advance to within one point OF that pro-
posed ratio in twenty-four hours all
around the world. But would it not
also result in a very large increase of
production throughout the world? In
Mexico, for example, the production of
white metal can and would be enlarged
TO enormous proportions. 1t could be
very considerably increased in Colorado,
Utah and all the mining states If the
miner has positive assurance that the
rate would stand at Ga to 60 cents an
ounce. Hundreds Of long abandoned
silver mines would be cleaned out and
brought again into the shipping lists
Prospecting for silver lodes or ledges
would again become q passion, and in
the course Of three or four years the
supply would greatly exceed the demand.
For, we can mine, transport and treat
silver helriDg ores today at less than
half the cost which ruled prior to the
demonetizatio OF the white metal. As
matter Of fact. there is quite as much,
aud in many cases even greater, profit
in mining such ores today as there was
in the old time, when it brought 81 90
per ounce. The reason for this is plain,
it has been rected so often it has grown
threadbare.
The United States. Mexico and Chi.
ma put forward their proposition TO the
other nations upon good logical lines,
and il was accepted, largely for trial as
an experiment. All the world is now
ready to put it in practice. Mexico will
take the lead, as she did in framing the
new conditions. That rapidly growing
republic will put in force the new coin
age plan by the first OF next year. But
it is understood by all the governments
concerned that whom the market price
Of silver rises beyond certain figure.