El Paso herald. (El Paso, Tex.) 1901-1931, 1919-07-26
CENTER
MAY Be SHIF TED
American Mining Men
Favor Exchange in New
York City.

Mining men Of the southwest are
showing great interest in the move
ment to establish a silver exchange
IN New York They have been talk
ing more or less about such an ex-
change for a long time. but now. with
New York the money center Of the
world, producers more than ever are
advocating the plan They see less
reason than ever why London should
dictate the price Of silver.
S. r Wagel. dealer in bullion and
foreign exchange in New York. has
issued a statement on this subject He
proposes such a silver exchange TO fix
the price Of the metal from day to
day. Prior to the date when the gov
eminent fixed the maximum price for
silver, London fixed the price Of the
metal and New York converted it into
dollar exchange, less freight and IN
surance. Now that the government
has removed the restrictions, this
course has been returned to again
Eastern Markets Fix Prices
The writer goes on to say that 1T is
important to remember that while
London supplied the basis. important
centers like Bombay. Shanghai and
Hongkong followed their own course,
according to conditions prevailing in
those markets.
Prices in Bombay and Shanghai
were frequently. in normal times. be-
low the parity Of London, although
through London. New York. alone,
took no independent action but close
" followed the London market
Change in conditions has now made
it Inevitable that New York should, in
its own interest. fix the price Of the
metal from day to day. Therefore. an
exchange in which dealers viii meet
and trade has become a necessity"
Mining men state that the strong
est opposition to fixing the price OF
silver in New York instead Of London
comes from a certain large producer
Of the metal
Gives His Reasons.
Mr.. WageI gives as his reasons for
the establishment Of such an exchange
the following:
"The United States is the chief pro-
Queer OF silver.
America is as near the consuming
centers as Is London
center Of the world and the trend VIII
naturally be for all parties to come 10
this market for dealings IN the metal
and the establishment Of the exchange
will be to facilitate the process
That our producers should be de-
pendent on operations in markets
abroad which neither produce nor
consume silver, is an anomalous state
OF affairs which the proposed ex-
change viii correct
THE demand for the metal is no
longer altogether from India and
China: the currency difficulties arts
Ing out Of war finance have created
situations in almost all countries, thus
enabling q demand for silver. An
will naturally gravitate 10 the pro-
ducing market
For the first time in the history
Of the silver trade our producers ana
dealers are in direct touch with the
consumers. In 1918 exports 10 emma
and India were six times the total eN-
ports 10 the United Kingdom
'Our American merchants like our
banks are extending their operations
in the east Exports to China are solo
on a gold basis bus are calculated on
silver basis by the Chinese dealer
Consequently the American exporter
must follow the silver market II he is
to succeed. He must also operate, as
the Manchester dealers have done, IoI
a long time in the past The exchange
is a necessity for our trade with
China and the Tar east