The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1923-01-11
WORLDS SILVER OUTPUT
CONSUMPTION PAST YEAR
DEMAND FAR IN EXCESS OF PRO-
Observation-Disclosures PRICES
PAST YEAR.


81 financial Review.)
4 Annual reviews of the Silver stu
alton" generally refer to silver produc
q ton but an actual examination of it.
many phases will throw more light
mon the gold position" of world ma.
tons than any ordinary report of GOLD
reserves, gold movements or gold pro-
duction.
This year the absorption of silver
and gold by far eastern nations is the
largest for any regular yearly period
in their history; it is also verifica-
ton of the predictions of the noted
British economist, Moreton Frewen.
that the far east would in the years
1922 and 2S exhaust the large sup
plies of silver thrown on the markets
BY the European countries and that
at the end of this period the question
of currency credit would rest with
this country because of its large gold
reserves) and these Asiatic countries
which are still on a hard rather than
soft" money basis.
In addition to the figures on silver
consumption by the far east shown in
this article, gold exports to India alone
during the year have been about 40
per cent of those received in this coun-
try.
The largest world production of
new mined silver in many years, 207,-
100000 fine ounces was turned out of
the mines. mills and smelt4rs Of the
world in 1922.
Almost the only big industry on
EARTH outside of gold, where custom
ers buy and pay good prices for en-
tire world new output, in the years
since the war, is the silver Industry
There were S070OO,OOO fine ounces
of commercial silver metal taken out
of the market and sold into consump-
ton in 1922. This does not include
many millions more in old coin that
was reminted and put back into circu-
lation in debased prices by the Brit !
ish and Dutch empires.
Not only did the market take the |
entire bumper production, but over
and above that an even 100000 900 |
fine ounces of the precious white met
al in excess of whole world new pro-
duction, had to be sold to meet the
voracious demand for commercial pur-
poses, especially in the far east and
in the Industrial arts in the occident
world
Coinage demand was very light in b
the occident last year, almost non-ex-
istant When it resumes. how to meet
this additional demand for silver and
meet existing demands. too, will be a ]
problem for the silver producing in ]
dustries and consumers.
The extra hundred million fine (
ounces silver, over and above the {
world new production from the mines
that was needed in 1922 to meet or (
ders from the worlds customers, b
came from remelting old coin The Il
supply Ct old Mexican dollars which
used to r-cet this extra requirement L
in bygone years has long since been 4
exhausted and was replaced in 1922 s
by disposal of remelted old European
mintages chiefly by the British gov ,
eminent for the Sheffield trades and Il
India; by the Dresdner Bank and the
Reichsbank for continental Europe
and the Americas; and by the Hong L
Kong colonial government and some I
old Russian coins to meet extra Chi
nese demand. L
Higher Prices in Past Year. 4
Better prices ruled for silver, too, in t
1922.
American mines received the $1.0O u
an ounce fixed price under the Pitt t
man act. It exceeds any pre-war
prices since 1885. save only a few 4
brief months in 1890 under the short G
lived Sherman law. American pro-
duction has received 81 per ounce, or t
better continuously since April 1918,
There are indications now that as
a consequence of various plans now "a
being pushed, 4 n.eriean silver mines '
may continue to receive a particular
price for their production, independ- c
emily of whatever price silver may q
command in the so-called open or 81
foreign market. \
The average price of 6s cents u S. S
gold currency, per fine ounce silver in t
1922, in the so-called open or Iorelsh Is
market at New York, was more than i
five cents better than the average of
6s.O7 cents in 1921 The pre-war av- d
erage was 55% cents for five years
19O9-1913 inclusive. t
This open market price of silver in
1922 at New York exceeded anything
pre-war since way back in 1898. I
The London average price was 1873
pence per British ounce in 1922 This t
seems TO show "a decline Of ~ pence Id
from the average of S6% pence the u
year before, but the decline is more
seeming than real It was due to the
higher sterling exchange for British
paper currency in 1922, not lower {
prices for silver; the hard money price
of silver was, of course. higher by
NEARLY < ca,,ts an ounce over 1921 The 2