Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-05-04
WAR HAVING PECULIAR EFFECT
ON VALUE OF ONCE DIS
CREDITED WHITE METAL.
WESTERN AMERICAN MINES
PLANNING TO REOPEN
Huge Demand for Subsidiary Coins
and Pilins up Of War Debts Of Euro
pean Nations Sends Price Soaring
American Government Makes Huge
Profit on Bullion Bought Recently.
Especial Correspondence

washington, May 4.-One of the
curious effects of the war on Ameri-
can business has just been manifested,
in the announcement that number
of old silver mines turnout the west
are TO resume operations. The price
of the white metal has advanced SO
strikingly, and the indications of a
continuing advance are so impressive.
that there Is general disposition to get
back into the business Of producing.
Just few months ago there was
huge demand for subsidiary coins, and
at the same time the price of silver
was very low. Mines all over the west
whose most important product was
silver were closing down because silver
seemed a drug in the market.
So the mint decided to buy silver.
1t was something Of a speculation. for
Uncle Sam does speculate at times.
He could have got along without buy
ing for some time. But there was
double incentive to purchase at that
moment. 1t would provide silver at a
time when the price seemed low:
when it would help keep the silver
mining industry going. and when It
seemed likely the price was going to
rise.
So the mint bought 4,s75.ooo ounces.
at 48.5 cents. That amounted to
s2,i17405.
A bulge in silver bullion last Satur-
day brought the quotation to 1875
cents. One Of the simplest OF mathe-
NAUTICAL calculations discloses the fact
that the government earned a profit OF
5 l,0as.220 by that transaction. 1t may
60 to $4,000 900 before the price OF
silver stops sky-rocketing.
But all the indications point to a
better market for silver for many
years to come. The war is chief OF
these. The nations are all boarding
their gold, using every possible In
ducement to bring 1t into government
repositories and putting out paper to
take its place. The public likes to
see a reasonable proportion Of hard
money" and in the absence OF gold.
silver is a very satisfactory substitute.
especially in the Latin union coun-
tries.
Mexico Output curtaiied.
Mexico has been in recent time tho
foremost silver producing country.
But the upheavals IN that country
have cut down its output, until in 1914
the latest year for which satisfactory
statistics can be had. the United
States took the lead, with an out
turn of $4,000. 900 worth OF silver.
against $3s,000.00 for Mexico. These
two countries produce more than two
thirds of the worlds silver at present.
Canada came third. with $1s,0oo.o 600.
so that North America is approx
ma teiy the WORMS source Of silver.
But, while the North American con-
tinent is producing the silver. the old
world Is reha bilitating it. Allusion
has been made to the fact that gold.
taking the world over. is being with
drawn from common use, and paper
issued against reserves Of gold. On
the other hand, silver becomes more
and more necessary for popular cir
cLlation, especially with the move
ment Of armies from one country to
another, and the general activity of
/ international agents. Especially is
this true in the case OF the movement
| Of great bodies of armed men. who
must have some money In their
pockets that will look good in strange
regions. The allied armies that have
been sent into the Levant have car
ried with them an amount Of silver
money that has been responsible for
a good deal Of the advance In the bull
Hon price of that metal Just little
time ago the Egyptian government is
sued decree making the Indian rupee
legal tender thruout Egypt and fixing
| it's relation in value to Egyptian
monetary units. -5,-...
Prospect For Silver Bright. ..-,
The prospect for silver Is bright:
but it can not yet be regarded as
brilliant. The silver in a dollar is
now worth about SIS cents. If there
could be assurance that present pro-
duction Of silver would not greatly In
crease, it would be reasonable to Inn
agine that the parity Of silver and
gold, at the sacred ratio" of~sixteen
to one might one day be restored.
But the difficulty is that every time
the price OF silver goes up "a few
cents. 1t brings into production lot
OF mines that can not be probably
Operated at low prices. Our Ameri-
can west is full of them. I have heard
| 1t stated by men who ought to know,
that If the parity Of the metals should
be restored, the population OF Nevada
/ would be doubled, and that the worlds
production Of silver would at least
double.
Locking into the post-bellum future,
silyerss outlook Is particularly roseate
/ because an the countries are getting
ready to supplement their money
! -