The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-05-29
LITTLE HOPE FOR SILVER.

The recent slight advance in the value
Of silver gave rise to the hope that
the tide had turned at last and that
the mining industry Of the west would
be given an impetus by continued ap-
probation Of the white metal. The hope
seems to have been built y very
slight foundation. In China
requiring an increasing amour, Of sill
yer as it advances. news comes that
the celestial empire Will substitute pa
per for silver the latter being held in
reserve for purposes Of redemption.
and that there is a chance that Sc
curities viii be used largely in the flu
ture TO secure circulating notes, which
would still further contract the use
or silver and lower the price. The Wall
street Journal has this to say as TO
the outlook for silver in China:
some hopes for Improvement in sill
YER values have been entertained from
the program OF monetary reorganiza-
ton in the Chinese empire. But this
NAV easily be over estimated, for the
present. at least Coinage Of silver by
the Chinese government. under the new
Arrangement for a standard imperial
silver currency. does not as Yet indi-
cate any marked increase IN demand
for silver bullion. as measured by the
possible minting needs Of the empire.
The quantity of old silver in coin and in
bullion which the Chinese market could
furnish for recoinage, or for original
minting. is Of such proportions that
the governments program could prob
ably be followed for a considerable Pc
riod. without seriously stimulating de-
mand from western sources Of supply.
THE probability of this IS all the
more evident when t is recalled just
what the Chinese currency program in
wolves. II is essentially that Of sub
stituting paper for silver, through the
agency of silver reserves. much after
the form of our gold or silver certifi-
Gates. These notes. redeemable in coin,
would presumably circulate in prefer
ence to silver, except in subsidiary
functions. With a metallic reserve for
outstanding notes, the credit OF the cir
culation would be secured by such pro-
portion Of specie reserve as might from
time to time be deemed practicable. In
japanese bank currency, about AZ per
cent of the circulation is secured by
gold. and the balance by securities.
IT a larger proportion of securities
were to be used in China to secure cir
culating notes. the function of silver
would be correspondingly reduced as a
specie reserve. and mercantile needs be
met even more largely than at the pres
ent time, by paper currency. This fact
should be kept in mind by all those who
look for any marked Improvement in
the demand fo- silver from the devel-
opnent of the Chinese currency sys-
/ tenn"
The attitude Of the United states re
garding silver is incomprehensible.
While protection favors are being hand
ed out right and left, the mining indus
/ trs. so far as this particular metal IS
! concerned. is allowed to languish. T.
there ever was an intention 70 &c
something for silver" about which We
heard so much when Mckinley was
/ first elected. the time has arrived fer
action. This country could easily con-
troll the entire trade Of the Orient by
| stretching out its hand and without re-
sorting 10 free coinage.