Gilpin observer., 1915-02-25
INCREASED DEMAND FOR THE
COINAGE OF SILVER

CoHceiHlHg the prODdDlllty OF an in
creased demand for silver coinage by
reason of special financial needs Gre
ated by the great war. The Mining
Investor has paid very little attention
to these articles because, unfortun-
ately, the question of bimetalic cur
rency is usually treated as political
one or, still worse, as a sectional
i one. AS matter of fact, the ques-
ton is neither political nor section
al, but economic and international
Francis A House, writing in the Der
yer News. treats the silver question
from somewhat broader standpoint,
and the following article reprinted
from recent issue seems worthy
of attention:
Speculative Induce
The silver market remains in an
the severe arrangement in marine
trade in all parts of the globe, the
resultant high cost of insurance and
shipping, and the substantial decline
metal. The present quotation of 4S12
cents per ounce fine may be said to
represent the average since the pre-
cipitation of the war. The minimum
! has been 471a and the maximum 49N.
Two and three years ago the valu-
alton ranged from IS to 64A
There have been intimations for
some time that the metal was being
accumulated in large amounts by s.ec
ulative cliques. but they have not
been sustained, so far, by a sympa-
thetic change in market conditions
and value. If there had been pur-
chasing en- an important scale. the
price surely would have moved up to
80 CIR 81 cents. There is a probabil-
ity, however, that the metal is be-
inc accumulated only in such small
qiS|titi7s and in such gradual way
as will serve to keep the quotation
stationary for a while at the exist
ing depressed level.
1t is not the least open to doubt
that the speculative inducements to
buy the white metal are strong at the
present day. Sooner or later there
must spring up an eager and volum-
inous demand in all the leading
countries. The longer the inevitable
buying movement is STAYED off the
| shall not be bit surprised there
fore, If the market quotation twelve
months hence is close to 20.
Silver Will Be Needed
Under such conditions as now pre-
vail in Europe, it is perfectly plain
that the potential silver requirements
are constantly growing. Currency ex-
pansion already has gone pretty far,
but will go much farther yet
The note circulation of the Bank
OF France stands at 10,473 900 coo.
francs; year ago it was 6,02S,773,
600. The Bank of Germany reports a
total of 4,664 ,5SS 900 marks, as COM
pared with 2,052 $50. 900. The res -ec-
tive records OF the Bank of Russia
are equally significant. In London, it
is frankly admitted that the Bank of
England too, has made a considerable
achievement with respect TO fiduciary
currency initiation
Since Jan. l, 1914, every one Of the
principal banking institutions on the
other side has materially amplified
its holdings of gold.
The ratios of increase vary from
20 to 80 per cent, roughly computed.
The most notable occurred in Berlin,
Paris and st. Petersburg. Despite
them, however, Official and unofficial
hints of currency depression are null
tiplying. We are informed of efforts
ito keep money at or near face val
ue.' From this it follows that in ex-
alted financial and political quarters
existing gold reserves are not regard
ed as anywhere near sufficient.
I Gold Output Declining
Since 1911. the worlds output OF
yellow metal has gradually declined
In 1914 it amounted to s455 1905 900
as compared with S462 $40, O0O in 1919
and with S466, 900 in 1912. OF the
three principal producing countries
the United States was the only one
recording gain last year. Both the
Transvaal and the Australian mines
reported losses.
There being no prospects, at this
time, of an increased production II
1915 and 1916. the question remain.
how do the five great nations in
: volved in the APPALLING conflict intent
to cover in halfway adequate de
gree the enormous additions yet t,
be made in their outstanding fidu
. ciary circulation? pause for reply