The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1916-06-01
PROFITS IN SILVER
PRICE REMAINS FIRM
THE ADVANCE MAKES TREMEN.
DoUs INCREASE IN EARNINGS
OF coEUR D'ALENE MINES

Although the price of silver has re-
coded from the high level of TN, it
is still quoted at big figure and the
best authorities predict an upward
turn. Silver is an important factor in
the lead mines of the Occur d'Alene
district, and also occurs to consider
able extent in the zinc. The rise In
price has added almost SO per cent
to the value of the silver product and
this without any increase in the cost
of production.
Never, in the memory of the oldest
handlers of silver" say Zimmerman &
Forshay, bullion dealers of New York,
have conditions governing the supply
and demand been so acute. The in
crease in demand was not only for
actual use, but for speculative pur-
poses, the rapid rise having tempted
investors in. all parts of the United
States to take a flyer in the white
metal, and to hold on within d small
fraction of the top, havin protected
themselves by stop orders, by which
they follow quotations.
1.-THE immensely increased circula-
ton of money to the wageearners of
the city, which has now endured for
over a year and a half, leaves a sur
plus after living expenses to be invest
ed in a few luxuries, and has resulted
in very healthy demand for silver
ware and silver novelties, in antcipa-
ton of the continuance of which the
silversmiths are buying very largely to
protect their fall business.
A Persistent Rise.
while we have enjoyed the most
persistent and rapid rise in silver
since the Sherman law, there is no
reason at the present time to believe,
barring a few slight reactions through
the flowing over of some large specu-
lative holdings, that we will see any
thing but better prices, and even
should the war suddenly cease, and
silver experience quick slump, it will
soon come into it's own again"
Zimmerman & Forshay evidently
base the advance in the price of silver
on the prosperity of the country, which
differs somewhat from the opinion
given by Foreton Frewen, one of the
leading British financial authorities,
who believes that the reconciliation
Of silver is in practical, rather than
theoretical, politics. Writing to the
Westminster Gazette, Mr. Frewen re-
cites the decline in the Chinese tael,
the standard silver piece, and shops
how remunerative the eastern trade
would be with the tael restandardized
in the ratio of three to the pound
sterling. Further, he says: IF we
can lift the rate of exchange with all
Asia to something more nearly ap-
preaching that at which Max Muller
shows it stood for 5000 years before
Germany upset the ratio, in 1873, can
anything approach that in import
ance"
Samuel Montague & Co., of London,
the largest bullion grokers in the
world, voice the following opinion:
No Change Imminent.
Given exhausted stocks, high ex-
pectations on the part Of producing
mines, and continuous purchases aris-
ing from the necessities of coinage
inquiries which can hardly be STAYED
off, and which emanate from several
countries at one time-the situation
admits of little or no modification. Any
temporary lull in the demand and cas-
ing of the price would only serve to
encourage speculative interest and for
that reason reaction, when 1t comes,
may be comparatively small and short
lived"
In this connection it is interesting
to note that silver has always been in
great demand at the close Of wars, and
the present war promises to be no ex-
ception. Consequently, there would
seem to be every reason TO expect that
the present high price is not tcmpor-
airy, but that even higher prices may
be expected, and continuous ones at
that, for long time to come.