The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1921-03-31
The Silver Market
CONTINUED from page -

LOT SILVER certain fundamental ele-
ments must be kept constantly in
mind. All commodities may be
roughly divided into two classes, viz:
consumable and non consumable. In
the consumable class are all the ordi-
nary commodities of commerce and
agriculture, such as copper coal, iron
wheat cotton and other necessaries
Substantially each years product is
either actually consumed as are
wheat and coal, or is locally utilized
for some specific purpose. as are
copper and iron. These consumable
commodities are thus removed from
the market In the non consumable
class are the balance of the cOmmod-
tiles, such as works of art precious
jewels and precious metals that may
be visualized as constituting a per-
manent stock on hand, to which small
yearly accretiOns are made
Therefore, in considering market
for either of the precious metals gold
or silver, due consideration must be
given TO the world stock on hand
Since 1860 there has been a world
production of over twelve billion dol
lars of gold and over seven billion
ounces of silver As both metals have
been produced for ages, no one can
determine the actual stock on hand
of either one. The worlds silver
stock may be divided into two classes, !
that which has been used in the arts |
and that which has been coined. At
what price, or in what amount, silver |
that has been used in the arts will /
come on to any given market, or in |
what time, is wholly unknown and !
thoroughly problematical. However,
ii is estimated that about 10000 900 |
ounces of 'old silveJ" came on TO the
London market the first ten months
of 1920. Part of this was from melt
ed coins and the rest from the arts. It
is believed that owing to the prohib-
iting laws of the European govern
ments and the seeming exhaustion of
supplies, there will be little silver at
least from melted coins. coming on to
the European market in the near flu
ture. What may come further from
the arts is anyones guess.
On account of this world stock of
silver, statistics covering but one or
two years probable production and
consumption are likely to be most
dangerous and misleading. Only {
about a year ago these yearly statis-
teal estimates seemed to indicate {
shortage in 1920, according to those +;
who made the several estimates, of
from 40 to 1856 million ounces Based
on these estimates, many people an
ticipated continuing high prices dur 7
ing 1920. The worth of such statis-
tics and estimates for any single year
without consideration of the worlds
stock and many other factors of i'm {
portance is illustrated by the fact 7
that foreign silver is quoted under a
zoe per ounce, instead of holding f
above S12O. as anticipated. c
Some authorities assert that the
price of silver is governed by the
price of Asiatic exchange; others that ,
Asiatic exchange is governed by the ;
price of silver Under differing con- !
ditions either conclusion, it would ap- J
pear, may be correct AS a matter of !
fact, the producer of silver. unlike the |
producer of other articles, never is
allowed any voice or option in deter u
mining the price of his product.
Desirabiity of an Open Market.
The worlds yearly output of silver u
has recently varied from about 225 u
million ounces in 1911 to probably $50 e
to $50 million ounces in 1920. Citizens
OF the United States own and control "
about IS per cent of the total. AS on
" about 25 million ounces are used
in the industrial arts in the United 1t
States, a considerable surplus is left, q
which has to find a market some
place in the world. For this reason
some preliminary work has been done u
hoping to devise some means, prob
ably through an open United States "
market, by which a higher price fo d
silver can be maintained. It is high t
ly problematical whether such means ~
could, under existing conditions, sue y
coed.
However, assuming there are ade- .,
quate reasons for such an open sill :,
yer market in the United States, I,
would it not be preferable if posi-
BILE. to have silver listed on the New
York stock exchange rather than at
tempt to establish it in an isolated
market by itself? Considering the -
high esteem in which the New York
stock exchange is held by many in >,
the west, it will not be difficult to di-
vine their reply to this suggestion
None the less, it must be borne in !.
mind that It requires money and !,
monied interests to handle silver in n
quantity and to deal with govern :,
ments. Through the stock exchange =
access could be had to reasonable fin a
ancial resources, and possibly assist
ance and cooperation in selling to
foreign governments. Further, those :,
who speculate would be afforded the >,
means of ample action. a.
All this on the hypothesis that sill d
. ,,.;11 ,c,+in,,a in the nOsitiOn il has -