The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1924-01-31
REVIEW or SILVER, 1923
AND OUTLOOK FOR 1924
MARKET WAS UNEXPECTEDLY
STEADY FOLLOWING END
OF PITTMAN ACT PRICE.

(Felix L. Wormser, assistant editor
in Review Number and Year Book
of Engineering and Mining Journal
Press)
The course of silver prices in 1928
must have been a surprise to those
people who, a year ago, could see
nothing but a collapse of the market
after the expiration of the Pittman
act repurchases-a collapse that did
not occur-and who felt that some
thing drastic should be done by the
producers or the government to pre-
vent it. Indeed, the silver market
gave a remarkable demonstration of
how readily and smoothly open mar
kets can discount a coming event,
provided they have ample warning
that it is impending. The price of
silver in the world market ended the
year at 64hc per ounce. which, oddly
enough, was almost the same level as
at the beginning of the year-64kc.
Fluctuations in between were within
narrow limits yearly average price
was 64.S73c.), despite the fact that
the silver market is one of the most
speculative in the world. The be-
bavior of silver lends color to the ar
gument of those who maintain that
speculation acts as a stabilizing in
fluence in any commodity market
The average price of silver for 1923
was higher than the 5-year pre-war
average (55.79c per ounce) by 1853 per
cent although production in Mexico
the worlds most important producing
country, was record breal1ing-95,-
100000 ounces. The production of
the United States was also larger
than in 1922, owing to the intense eff
fort made to produce silver before
the Pittman act became imperative
Domestic production began to fall off
after June. Comparative production
figures from the three most important
producing countries are given below:
Mexican, U. S. and Canadian Silver
Production-1922 and 1928.
in Ounces
1922 1928
Mexico 90 (a)S1O769OO (b)95O 900
Canada .. -(a)1S5S14OO (b)16 $50. 900
(a) Director of the Mint (b) Estimate
One of the most significant events of
1928, so far as the silver market is
concerned, has been the attempted
banding together of producers in an
association to market their silver
abroad collectively. The subject is
e+i11 ,,,5or oopcidoro tiop. I,,t ba
cause Of the disruption OF the power
full Copper Export association, it is
highly improbable that the silver pro-
ducers will try to do something which
the copper mining companies found
beyond their capabilities. Their en-
ergies may very well be directed to
another field which can stand much |
cultivation-the domestic consump- |
ton of silver. The industrial arts are
estimated to have used about 30,
100000 ounces In 1928, which was con-
sumed in solid and plated silverware, !
moving pictures and minor uses. We /
have it on the authority of the silver
ware manufacturers themselves that |
consumption of silver in the United |
States could be increased two and |
three-fold under proper sales slim |
illus. AS the manufacturers seem /
willing to cooperate with producers |
in a campaign for silver similar to
that undertaken jointly by the cop |
per producers and manufacturers, it |
would not be surprising to see some /
thing of this nature begun in 1924. A
trebling or even doubling of domestic /
consumption would solve the silver |
miners difficulties.
The last year has not differed from |
any other in regard to the prominence |
of the Far East as an outlet for the |
white metal. Both India and China |
have been heavy purchasers; India !
early in the year and China especial
ly in the last few months. The Indian |
government stocks of silver have been |
unusually high. At the end of Octo
Der they amounted to about 100000, |
900 ounces in coin and bullion; at the |
end of 1928 they were reduced to |
about 31O,OOO,OOO ounces. These gov
eminent stocks are secured by note
issues and will not have any adverse
market effect. 1t is, rather, the float
ing or trading stock in the hands of
the bazaars and banks which is in
fluential in determining the course of
prices. only few months ago this
supply was estimated at 20.0O0,O0O I
ounces, but at the end of December
had decreased to 100000 ounces.
Some shipments were made from In
dia to China; also heavy ones from
London and Pacific coast ports. In