Yerington times. [volume] (Yerington, Nev.) 1907-1932, 1919-08-09
SILVER SITUATION
FULLY ANALYzED

The market for silver is no longer
controlled by the British government,
but the price is dependent on the law
Of supply and demand, which accounts
for the recent Quotations in the mar
ket from SLIP down to $1.O5
This is the natural result of the re.
moval on May 5 of all restrictions on
the metal both by the United States
and British government.
The market for silver in New York
lis really governed by the demand of
London, where all purshases are made
for the Indian Government, and the
market advaces or declines according
to the requirements of India and China
which also purchases most of its sill
yer through the Hong-kong branches
of London banks.
The recent decline in the price OF
silver is said to be due to the fact that
midas demand shows big falling
off, and China has ceased buying until
it is assured that Kiao-Chau and
Shantung will be returned to it, these
being very prosperous provinces.
China Must Buy Soon.
China. however, needs silver; and
must, sooner or later, buy in London
or Bombay, the two cities where it
has banking facilities.
Silvar mine operators and investors
in silver stocks need have no fear of
the metal selling below a 81 an ounce
| for years.
The director of the mint Raymond
+. Baker. who is now in Nevada, is
reported to have said III Reno, on
June 20, that the price OF silver will
not fall below one dollar per ounce
in less than seven years, and probably
not for several years longer
He said that the possibility Of Con-
gress repeating the Pittman silver bill
was remote and added: IF the gov
ernment were to purchase the entire
silver production of the United States
| 70 the next Five years, the silver to be
melted and sold to the allies, under
the terms of the Pittman bill, the
silver would not be replaced 1t
would be impossible to purchase the
entire output of the United States
hence it will be somewhat longer
period than five years--I should say,
not less than seven years--before the
replacement would be completed.
The government has melted. Under
the Pittman BILL 270,000,000 ounces,
and 200,000,000 ounces have been sent
abroad
Pittman Bill Compromise
The Pittman bill was passed as the
results OF negotiations between repre-
sentatives of the Federal Reserve
bank : and the British government,
which did not wish tovpay more than
IS cents an ounce, the market quota
ton when negotiations commenced in
October 1917.
| At that price the greater portion of
the silver output OF this country could
probably have been purchased, but
| this would have been insufficient, and
the only source OF supply of a large
quantity OF silver were the silver dol
lars in the United States treasury.
| Many senators representing the
silver producing states wished the old
ratio value OF $l.2o an ounce to be
re-established, but the price could
not have been paid by Great Britain.
Credit Due Governor Boyle.
| The agreement to Fix the price at 81
an ounce was largely due to the ex-
cellent judgement and political saga
] city of Governor Boyle of Nevada,
the silver state" which is now en-
joying great prosperity owing to the
boom in silver mining all over the
state, and particularly in Southern
| Nevada, where some remarkable bod
les Of silver ore are being opened up
in the new Divide district.
| The present high price of silver is
undoubtedly responsible for the boom
in silver mining in Nevada. but in
creased mining activity will probably
not appreciably add to the output of
the state until next year.
New mines are being developed, old
mines are being reopened, and big
milling plants are being constructed;
but it takes time to place big mines on
a large producing basis, and heavily
increased output OF silver from Ne
vada cannot be expected before the
end OF the year; but 1920 should wit
ness an immense production Of silver
from Nevada-Gorden Hall, in New
York Telegraph.
IL W n 81 e..