The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1920-07-08
Silver and Silver Mining


New York Record, June 25)
The price of silver produced from
mines in the United States is now Of
fcially stabilized at a minimum price
of 81 an ounce by the United States
government for an unknown period of
years, probably more than five and
possibly as long as ten years.
The only market problem that now
cOnfronts the silver miner is to what
price silver will advance when normal
conditions permit the proper opera
ton of the law of supply and demand.
Silver and gold are the only two
metals which enjoy a fixed minimum
price in this country All other metals
are subject to fluctuations generally.
if not always, governed by the law of
supply and demand.
Gold was supposed to have a fixed
world wide price of s2O.67 from which
it was not believed it would ever vary
but the insufficiency of gold for worlds
demands has carried it to a high but
fluctuating premium at which it still
sells in South Africa where over so
per cent of the worlds supply is mined.
but this premium is gradually fading
away and is doomed to disappear.
In this country gold as produced
from the mine has never sold above
or below S2O.67 an ounce. At that
price the mining of gold, owing to in
creased costs of labor and supplies, is
no longer profitable except in high
grade mines which are rare.
Silver mining in the United States
is in an unprecedently favorable posi-
ton especially attractive to investors.
The fixing of minimum price of 81
an ounce for silver guarantees a rea-
sonable profit over cost of production
but this profit is not limited because
when the price of silver advances
above the equivalent of that figure in
other markets. the American miner is
free to take advantage of the advance
as the United States government will
not pay less or more than 81 an ounce
but will take all that is offered it at
hat price.
Silver production of United States
mines in 1919 was officially reported
Al 55,2S5.196 ounces, therefore if the
United States government bought the
entire output of the mines of this
country to replace more than $780,
100000 ounces melted and sold under
he Pittman act. the purchase would
'Xtend over three years. but it will he
Unable to do so for the reason that
bout 100000 ounces a year are
equired for domestic coinage purposes
n addition to a large amount for coin
ge for the Philippines, Cuba and the
'outh American republics and about
100000 ounces a year are consumed
" the industrial arts.
This would therefore leave only ,
bout 100000 ounces available each
ear for purchase under the Pittman {
ct and at this rate the government /
urchase will extend over a period of q
'Om twelve to fifteen years. i
II is therefore perfectly proper to f
redict that the minimum price of sill s
err will remain at 81 an ounce for the fl
ext ten or fifteen years O
The American miner of silver who s
rs for years complained bitterly of g
ne manipulation Of the price of sill n
or in the London market is no longer O
'ncerned with Great Britain's con- n
oil of silver, until after the price ad- N
lnces to above the equivalent of 81 c
] ounce II
The recent collapse Of the silver
arket in London is attributed to the 81
ssation OF buying by India and n
nina and the unexpected receipts of g,
rye supplies of coined and orna- ID
entail silver from Germany. Austria fc
ID Moscow. These sources of sup
y will soon be exhausted.
India and China must resume pur- nj
asses Of silver ere long. "a