The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1922-09-09

tries produce nearly all the silver Of
the world.
Scarcity IL Possible
Let us see what has been the pro-
duction OF silver In the United States
since 1906. In 1906 the production
was $4,000, 900 ounces. 1t steadily
increased until 1916, when 1t reached
74,0O0,0 600 ounces. Since that time
1t has decreased to 53.000,000 unce
in 1921.
So the average annual production
Of silver throughout the world may
be placed at 1877 ,000.0 900 ounces and
the average annual production in the
United States at approximately 65,-
100000 ounces. =
These figures clearly disclose the
scarcity of silver throughout the
world. They demonstrate beyond
argument the impossibility Of great
ly increasing the production.
Now, let us consider what is the
demand for silver. We have already
considered the demand for silver in
India. which came to a crisis during
the war.
Demand Growing
Economists all know that China
measures all values by silver In the
form of bullion. Commerce can not
be transacted in China except through
the medium of silver. The demand
for silver In China has always been
enormous. This demand is now de-
pressed because Of the failure of
crops in China and the deplorable
economic and political conditions ex-
listing there. And yet. 1t is evident
that China is going to develop rapid
ly In the next few years, and with
this development will come a greatly
increased demand for silver.
silver is the money of general
circulation In all of the South Amer
lean republics. AS the commercial
development Of those countries in
reases the demand for silver there
lluSt NATURALLY luCIcdSc.
Europe Denuded
"It is admitted that India and
China r the largest markets for
silver. And yet in our own country
during 1920 the director of the mint
purchased 100000 ounces of sill
yer for subsidiary coinage. nearly
half Of the total production of silver
in the United States.
"All OF Europe uses silver for sub
sidiary coinage. During the war there
became such q tremendous demand
in Europe for silver coins with which
to pay certain of their soldiers that
continental European countries we're
compelled to melt up silver plate to
replenish these coins, and when the
armistice was signed these countries
were denuded Of silver.
Ibid they want the silver? Did
they need the silver? Witness what
happened Immediately after the sign
ing Of the armistice. These coun-
tries went into the open market of
the world. to compete In the purchase
of silver with China and India. This
natural demand and purchase car
ried the price of silver above a dollar
an ounce, 1t reaching its maximum
price of $1.38A an ounce on Novem-
Der 25, 1919.
Reaction Takes Place
"Then the price commenced to re-
cede until the month of May, 1920,
when the worlds market price Of
silver went below 81 an ounce.
What was the cause of this sud-
den drop in the price Of silver
through the world? China vas racked
with famine and torn to pieces with
political disturbances. Germany, be-
ing without gold or credit. was COM
PEELED to remelt the silver coins that
she had laid in Immediately after the
armistice and dump such silver bull
lion on the market at any price she
could obtain, because 1t was the only
thing that had a value with which
she might purchase in foreign coun-
tries. Other European countries did
the same thing. Even India, for the
first time in many years. melted up
it's silver and threw 1t on the markets
Of the world for the same eason
1.-The depression. therefore, of sill
yer was natural. And yet all Of these
countries must again supply them
selves with silver for subsidiary coin
so soon as they have credit or pro-
ducts with which to buy silver. Not
only that, but as the countries Of
Europe become prosperous they will
desire and undoubtedly will replace
their silver plate that they melted up
during the war and during the last
several months.
New Markets Develop
"In the United States alone during
the past year there was over 25,0OO.-