The silver state news. [volume] (Winnemucca, Nev.) 1907-1909, 1909-07-24
OUTLOOK FOR the
WHITE METAL

One of the latest contributions to the
study of silver is pamphlet entitled
The Silver Situation,' published by
the Otisse Mining Co., Ltd, of Canada,
in which there is a careful analysis Of
existing conditions governing the white
metal and which, in some measure, 10
designed to forecast its future, the
author, James s. II. Umsted, being
well known in Wall street and news
paper circles. Taking the recent dis
coveries in the Cobalt and Montreal
river fields in Canada for a text, the
writer argues that the production from
these sources has not been responsible
for the recent severe depression in sill
yer questions. The first great fall in
the price of silver took place in the
decade 1890 to 1900, largely because
of the failure and final abandonment
of the attempt of the United States
government to sustain the price
through liberal purchases. Numerou in
stances are given where, notwithstand-
ing material increase in the produc-
tion of the metal, its price has ad-
vanced in the year of enlarged pro-
duction or the year subsequent. The
author argues that there are many
factors which have governed the price
of the commodity apart from the ef-
feet of enlarged output. Numerous
facts and statistics are presented to
show, among these factors, the i'm
portance of the varying demand from
India as is governed by alternative
years of prosperity or famine.
The disastrous panic in the United
States in 1907, which disordered the
trade of the world, is considered by the
author to be sufficient explanation Of
the extreme depression in silver in the
last two years. Per contra, it is held
that the industrial recovery now un-
der way is an important element in
justifying more hopeful view of the
future of the white metal. Other fa-
sOlibS tOn0itiOub dI0 LILO luCI660luX
use for silver in subsidiary coinage,
assured particularly by the steps taken
by the Latin Union and by Germany to
increase the circulation of subsidiary
coins; the agitation for reform Of the
Chinese currency, and the consumption
which is assured by the remarkable de-
velopment of trade in the Orient and
the prospect of important development
of the resources of South America and
other silver using countries. Assum-
ing that 1910 will see normal conditions
of trade re-established the world oyer,
and assuming that the Chinese minting
system reform is carried out, Mr..
umsted says that 1--WE might readily
see coinage consumption of 100000
900 ounces and an industrial consump-
tion of 110,000,0O0 ounces, an aggre-
gate of 310,000,000 ounces, to meet
which Canada might add, say, 10000
900 ounces and the other producing
countries s5,O0,000 ounces to the
worlds production of 5000, 900
ounces of each year 1907 and 1908, be-
fore the total output would be brought
to equality with the theoretical con-
sumption. 1t is assumed that so
cents an ounce is the probable mini
mum of the price Of silver, as, below
that figure, production would decrease
owing to unprofitableness in operating
many mines, while for the reasons Civ
en- above it is contended that q ma
terial advance from present quotations
is more than probable. The pamphlet
masses together many statistics relat-
ing to the production, consumption and
coinage of silver in the course Of the
last several decades and attention 10
given also to the future Of Canada 3
mining industry, which is admittedly
favored by extremely low costs of out
put