Gilpin observer., 1917-09-06
SILVER SITUATION AS
VIEWED BY NATIONAL
CITY BANK OF NEW YORK

The bounding price of silver is
serving to bring from financial ex-
perts the ASST gned real causes for the
upward tread of the. white metal. Cne
of the most powerful financial insti-
buttons in the country, the National
City bank of New York, handles ahe
subject in the following Interesting
manner in recent bulletin:
1.-The silver market has been excit-
ed and higher in recent weeks, and
the position of he metal is very
strorg owing 10 the heavy balance OF
trade in favor of India. The situa-
tiou is the occasion n cf no little per
pleXity to the British au hori.ies, ind
concerns the United States as we'll.
for If the balances due India cannot
be paid in silver they will have to
be paid in gold, ard nobody cares to
see gold taken to that bourne from
whence mel her gold nor silver ever
! returns. The balance of trade in IA
vor of India for The uast British fis-
cal year, ended March 81, 1917, was
$270 ,902s s259, which compares with
S196, 43S, 03O in the year 1915-16, $685.
1888 ,OS1 in 1914, and $261 ,682, 1888 in
1912-13 the last year of normal trade.
1n 1914-15 the importations of silver
by India amounted to 60,077.452 ounc-
es, and in 1867 to 115,565 1861 ounc-
es. In order TO direct all importa-
items into the government treasury
private imrcr.ations have heen re-
Gently prohibited, except under IL
cense. The Indian demand has caus-
ed large moy EN- emit of silver from
China and exhausted supplies every
where without satisfying the trade
requirements. 1t is said that large
plantations in Ceyion have been great
ly embarrassed Tor the want of ru-
pees to pay fer yheir labor. and mon
ey has been tight in the financial
centers of Inlia.
THE Indian government is under
stood to have asked permission of
the home government to allow it to
import gold either from London or
the United States, hut consent has
not been given. Japanese banks are
shipping geld from Yokohama, in pay
ment, it is explained, for Indian cot
ton, and there would be handsome
profit to American banks in gold ship
ments from this country, but they
have abstained for public reasons.
I'm order to correct the exchange
situation the indian government has
brought out loan of G100,000. 900.
or $1,000 100000 the proceeds Of
which will be placed no the credit of
the British government Reports show
that The lean is being we'll raibsorib-
ed. and this should remedy the ex-
change situation as between India
and the outside world, but it does
not remedy the embarrassing situa-
tcn in India, fer the reason that the
small Indian farmer or laborer Is not
a bond buyer and he is the indi yid-
ual who is wanting silver or gold in
exchange fer his products and labor
The great body of the Indian people
have little knowledge of paper mon
ey or any form If credit. and nobody
knows how to persuade them to take
amy substitute fer the precious met
ais.
The total pro duotion of silver in
the world in 1913 was estimated at
223 900 900 ounces but in 1915 the es-
tdmated yield was only 1723S3. 900
ounces. The chief failing off ha
been in Mexico. Cn the her hand
the coinage of silver in all countries
has increased. cwirg to payments to
troops ard the activity of trade
France used 10000 900 ounces in
1916. which was four or five times it's
normal consumption. The coinage of
the United States is far beyond the
usual amount.
The price Of silver in New York
Is 7s TO 80 cents. and has been spas
medically above he latter quotation.
This price is very remMnerative to
silver producers, especially as silver
in The United States is mainly pro.
duced in connection with lead and
copper. which are also bringing high
prioes."-Denyer Commercial.
d.,