Tombstone epitaph., 1921-01-23
Our Government Option Against Silver Above SI4i an Ounce.


 Our Government Option Against
 Silver Above s,.4i an Ounce.
 With silver at an established price above sl.3S il might be abso- iutely ethical to reduce silver content of silver coinage but this is an en- tirrly different matter and related to other future problems.
 Since June r. barring two short periods. there has been two prices on silver: one on silver produced in this country and the other on the pro duct Of other countries This differ ence is due to the proY.s:ons Of the Pittman law and contract with the British government In the sale of 21v.0oo. oo0 ounces al Sl an ounce plus charges the Treasury must re-pur- chase al @ l-2 cents nounce net the silver SD sold so that the silver dol lar reserve may be maintained. Since June T. the Treasury has secured around GO.0o0.0uo ounces so that against our yearly production of about 70. 900. .00D ounces il would re | 0uire at least three and d half years to fulfill the entire order and prob ably much longer since a part of these purchases are in turn used for coinage requirements.
 For the 2o7 .o0o."oo ounces sold to Great Britain flor relief of British Indian during the war, Sl22.G00. 900 and ;Hior.s; st per cent Is still due this country which Great Britain is to repay in four yearly instaliments or about s3i.5"O.U0o yearly The ! British government further has ey- tended to this Government an option or rupee credits at the valu. of IS 2-3 cents per rupee The Sl22 .00V.- urO and interest can be offset in total or part through the exercise Of th. option but to make this option a.- tractiye silver would have to sell above Sl.il This presents rather interesting phase in the question Cf silver price tendency Gur:ng tine nent four years and probably in the next twelve months
 indicated 1921 Output ard Prices.
 As regards production for 1921 and its btariu. OF silver W-,es which $ probabl. oi the greatest importance il is probably significant tha, both silver and gold produc;:on Is con staEtly dw indlius High records in silver production were established i'll 1911 and in gold. from 1913 to 1915
 Increased silver production appears to be problem chiefly related to the still workable" resources of this country and also because they are probably of higher average value than those in other silver countries" '" Mexico and Canada. Some of the Lon don bullion dealers have forsaken their prediction about 200. .0o0 900 ozs- a-year production in Nexica and q silver boom in unexplored regions to- ward the Arctic circle Is predicted. but these prophesies appear to be even more remote than the huge anti cipated increase in Mexico.
 Conditions in Cohalt and Mexico.
 Productions in Mexico both for 1920 and 1921 will probably maintain the supremacy of that county as the leading silver producing area of the world with this country in a second position. Estimated output in 1920 Of 60.00o.0 .0co ounces may be equaled in the current year but 1t appears evident that the deposits of bonanza ores" are not the conspicuous fea- lures that they were previously. With low price foreign origin silver in the last three months of the past year a majority Of the Mexican silver prop critics have ceased to operate.
 In Cobalt silver production in 1920 was around 10000. .Oo0 ounces com pared with the more brilliant records Of several years ago when yearly production was more than 30.000, 900 ounces. Canadian producers have suffered almost to the same extent as those in Mexico as a result or the lower price on foreign origin silver in the last three months of 1920 Ex- changes rates at New York and San Francisco have enabled these com