The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1918-04-04

TIcsSls
The situation of silver is paradox
cal. The principal financial interests
OF the world contend that it is mere
ly commodity, and should be treated
as such. When, however, China want
ed to adopt gold standard of coinage,
pressure was brought to bear to COM
pei her to retain silver as her money
metal. While vigorously advancing
the doctrine that il is mere commod-
ity, these same financial interests deny
to silver the right Of free flowage In
the markets OF the world and they
regulate it with monopolies, embargoes
and banking restrictions for the very
reason that it is money metal.
In order to understand the silver
situation it is necessary to appreci-
ate how the interests involved are
lined up. Silver production Is an Am
erican industry. The principal Cana
dian and Mexican mines are owned In
the United States. The British en-
q,
an important producer Of silver. From
the commodity standpoint therefore
It is to the interest of the British to
supply their requirements at as low
price as possible. and it is to the in
terest of the American producers to
sell 1t for as high a price as possible.
Furthermore, In regard to its use as
a money metal British ideas are d.
rectly opposed to the American inter-
ests. Our economists have generally
held that we are best off when the peo-
Pile with whom we deal are prosperous
and have large purchasing power.
Great Britain, on the other hand, still
clings to her old notion that 1t Is bet
ter to keep the standard of silver as
low as possible. in order that the Brit
ish pound may buy goods in silver
countries at comparatively low prices.
The British think only of their own
purchases, whereas it is American
policy to consider the purchasing pow
or of China and other nations with
whom we desire to work up recipro-
cal trade
Great Britain is the principal pur-
chaser of silver. which she ships to
India, "the sink of the precious met
ais" where 1t is used for coinage, for
personal and other ornaments, and for
boarding; and she ships 1t also for dis
tribution in the orient through her
marvellous system of exchange banks.
BY maintaining a low price of silver
Britain Is able to purchase her ORR
entail goods at a more favorable rate
OF exchange.
The price of silver for the entire
world is fixed in London by group
board. They operate under ancient
crown patents, a relic of medieval in
stitutions and all other people are
prohibited from dealing in silver.
There are no opening or closing bids
or high. low or closing sales. One price
is agreed upon for that particular day
and all silver changes hands at the
price fixed.
Having fixed the price that their
clients in London are willing to pay,
the brokers who compose the fixing
board monopoly generally telegraph to
New York and make their purchases.
The New York price follows the Lon
don price. less the cost of transporta-
ton, Insurance. assay and abrasion,
Transportation is per cent, insurance
has recently been per cent assay is
one shilling per bar and abrasion is
figured at one-fifth of l per cent, The
London price is pence per troy ounce
s25 fine, whereas the New York price
is in cents per troy ounce 999 fine. The
purchaser pays the London brokers'
commission. which is one eighth of L
per cent.
The only real rival to London as O
silver trading center is San Francis
co. In spite of the manifold controls
that London exercises on the silver
market through the fixing board the
Indian government and the British
Oriental exchange banks, silver con-
tinually finds it's way from San Fran
cisco to the Chinese market through
non British institutions. Moderate
amounts of silver can always be sold
in San Francisco for more than the
London made New York price, and
occasionally, as has happened recent
ly, San Francisco becomes silver
market all by itself.
To show how London is able to con-
troll the price of silver single in
stance will suffice. Last September
the New York quotation was s1.O9h
and silver was being sold in large
quantities at s1.15 ga. Great Britain
then placed an embargo upon ship
ments of silver into and out of In
dia, and allowed it to be handled only
by the Indian mint. At that time there
were orders on the New York market
for ten million dollars worth of sill
yer for shipment to the orient. About
two million dollars worth had been
purchased when the British oriental
banks suddenly withdrew all exchange
on New York. The purchasers were
fbno 1aft with NO ,x,ox, 30 49,. g. 3