The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1919-03-06
PRICE OF SILVER HELD
DOWN BY GOVERNMENT
PRICE WOULD GO TO $1.29 IF
GOVERNMENT HAND
TAKEN OFF.

llHtldl at Tic p1CSSfl tiiiO
the strongest position both for imme-
tiate and future consumption, accord
ing to the circular letter sent out from
Mr.. Crowley's office and condensed by
the Anaconda Standard.
The United States government still
maintains the price on silver which
was fixed last April by the Walsh
Pittman act at 81 per ounce. On April
%, 1918, this bill authorized the use
: by the government of $350,000,000 in
silver lying in the United States treas
ury for the cancellation of foreign OBJ
legation and the replacing of this
amount by the purchase of silver bull
lion at 81 per ounce, which was sign
ed by the president.
The price of silver remained at 81
per ounce until August Is, when the
price was fixed at $1.O1h per fine
ounce, at which price it has remained
up to the present and is the price up
on which it is paid for at the smelt-
ers.
Liz SllNtl Slluitloi ID Of ILLS liiliC
badly strained, according to Mr..
Crowley, and it does not seem at all
likely that the government can re-
place the silver 1t has withdrawn at
at $101B per ounce. 1t was claimed
at the time the walsh Pittman bill
was enacted that silver could not be
replaced at $1-that 81 did not rep
resent the proper price leyel for the
metal in view of all conditions-but
this price was finally fixed in spite of
these contentious. 1t now appears
that the moment that silver Is re-
leased from government price control
and an open market inaugurated,
there will be an immediate and rapid
advance in the selling price.
Willing to Pay More.
1t is reliably stated that there are
buyers in the orient who are willing
to pay $3.50 an ounce for the metal. In
the 1918 movement which preceded
the enactment of the Walsh -Pittman
bill there were recorded sales of silver
at $1,0Sh to $1.15k per ounce.
The merest examination of the con-
/. ditions in the supply OF silver, when
compared with the immediate pressing
demand, lis enough to cause some APP
prehensive speculation. In 1911 the
world produced 226,O00,000 ounces of
silver. In 1913 the production had
fallen to 223,OOO,OOO ounces In 1915
it fell sharply to 17S,OOO,OOO. In 1915
it again declined to 156,OOO.00O ounces.
In 1917 it amounted to only 100000
600. In 1918 the production had
shrunk to 14S,000,0O0 ounces. During
this period the price of silver has
steadily risen from 1892 cents per
ounce in 1911 to the present fixed
price of $1.O1M.
The Crowley letter continues:
Few people will realize the hole in
the supply that this government with
drawal will make The total output
of the great Comstock NINE the
greatest silver mine of the country
from the date of it's discovery in 1859
UP to the present time, would not fill
it.
1T has opened up a silver deficit
which the Anaconda company, which
is the largest silver prodtcer of the
country, could not replace in a quar-
ter of century If all Of its silver
output were applied to the purpose. 1t
makes deficit greater than Leadville
and Creole could reimburse If taken
together since their discovery. 1T
would take the Nipissing mine, the
greatest silver mine under the British
crown, fully so years to replace this
silver lost to the United States treas
ury, which, under the provisions of
the bill and the agreements with the
silver producers, must be replaced at
the price fixed of 81 an ounce.
Demand Of Orient.
TN addition to this enormous with
drawal from the United States treas
ury, we must also consider the great
ly increased demand of the orient for
silver. China with its 400,000,000 peo-
pie and India with its 300,00O,0OO are
now clamoring for it, to meet the
stimulated requirement for subsidiary
coinage that the after war conditions
have established. Billions of ounces
have already disappeared in the great
nraws of Indo- Chinese coinage circu-
lation, and silver metal once so alb
sorbed never reappears. The increas-
ed demand from these peoples is ex-
pressed largely in the terms of silver
consumption represented by their
coinage circulation, which is increas-
ing since the war by leaps and bounds
and bids fair at this time to take all
the surplus silver in the world
Leading financiers are viewing the
situation with sgrave apprehension.
Something very close to an economic
upheaval may grow out of the situa-
ton. Silver today, from a neglected
and negligible position of few years
ago as a demonetized and debased
currency, is now in line for rebirth in
the way of money metal.
See Quick Advance.
Some even go so far as to predict